Actuarial Services in Pakistan: Gratuity, Pension & Employee Benefit Valuations
We arrange actuarial valuations of gratuity, pension and other employee benefit obligations, and support you in reflecting them correctly in your financial statements.
Overview
When a company promises employees a gratuity or pension, it takes on a liability that will fall due in the future. Accounting rules, including IAS 19 on employee benefits, require that liability to be measured using actuarial methods and reported in the financial statements.
We arrange the actuarial valuation of your gratuity, pension or other benefit schemes, and support you in reflecting the result in your accounts. We gather the scheme rules and employee data, agree the assumptions with you and your auditor, and deliver a report that is ready for your accounts and audit.
We tell you at the outset who will carry out and sign the valuation. Actuarial valuations are performed by a qualified actuary, and we explain what the report covers and how it can be used.
Who this is for
- Companies with gratuity, pension or provident fund obligations
- Finance teams preparing financial statements under IAS 19
- Employers setting up or reviewing a benefit scheme
- Auditors and boards who need a reliable valuation report
- Businesses growing their workforce who need to understand future liabilities
What we handle
- Valuation of gratuity and pension obligations
- Employee benefit valuations for financial reporting under IAS 19
- Review of scheme design and funding
- Assumption setting and sensitivity analysis
- Valuation reports for accounts, audit and board use
- Year-on-year updates and reconciliation of movements
Why professional help makes a difference
The liability is measured, not guessed
Actuarial methods estimate what the scheme will cost over time, so your accounts show a figure that can be supported.
Audit-ready reporting
A clear valuation report and disclosures answer the questions auditors ask.
Assumptions are agreed and documented
Discount rate, salary growth and other assumptions are explained and recorded.
Year-on-year consistency
We reconcile the movement in the liability from one year to the next, so changes can be explained.
How it works
- Collect scheme and employee dataWe confirm the scheme rules and gather the employee data needed for the valuation.
- Agree assumptionsWe discuss the assumptions with you and your auditor, such as salary growth and discount rate.
- ValuationA qualified actuary carries out the valuation and prepares the report.
- Reporting supportWe help you apply the results in your accounts and answer auditor questions.
Documents we typically ask for
- Scheme rules or employment policy
- Employee data: date of birth, joining date, salary and designation
- Previous actuarial valuation report, if any
- Current financial statements and the previous year’s disclosures
- Details of any fund assets held
- Contact details of your auditor
The exact list depends on your case. We will confirm it after a short discussion.
Common mistakes we help you avoid
- Booking gratuity as a simple percentage of salary without a valuation.
- Providing incomplete or inaccurate employee data to the valuer.
- Changing assumptions between years without documenting the reason.
- Not recording the scheme rules in writing.
- Leaving the valuation until the audit is already under way.
Frequently asked questions
What is an actuarial valuation?
It is an estimate, made using statistical and financial methods, of the cost of a future obligation such as gratuity or pension, expressed in today’s money.
What is IAS 19?
IAS 19 is the international accounting standard on employee benefits. It sets out how obligations such as gratuity and pension are measured and disclosed in financial statements.
Who needs an actuarial valuation?
Companies that have gratuity, pension or similar benefit obligations and that prepare financial statements under accounting standards that require valuation. We tell you whether it applies to you.
Who carries out the valuation?
A qualified actuary carries out and signs the valuation. We tell you at the outset who will do this and how the work will be handled.
What information do you need from me?
The scheme rules or policy, employee data such as date of birth, joining date and salary, the previous valuation report and your latest financial statements.
How often is a valuation needed?
Usually every year for financial reporting. We confirm the requirement for your company.
Can you help set up a gratuity or pension scheme?
Yes. We can help you design the scheme and understand what it will cost, and then arrange its valuation.
Will you speak to my auditor?
Yes. We can provide the report and explanations your auditor needs and help answer their questions.
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Tell us what you need. We will explain the process, the documents required and the next steps.