GCC & StatutorySAUDI LABOR LAW · ARTICLE 84–88 · IAS 19

Saudi Labor Law Article 84 Amendments and Statutory EOSB Valuation

Recent amendments to the Saudi Labor Law streamline resignation and termination entitlements, requiring actuarial models under IAS 19 to reflect revised resignation decrement tables and wage basis rules.

Soham ShahFellow Actuary (FIAI · IFoA UK) · IBBI Registered Valuer
3 min read
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Statutory entitlement structure under Saudi Labor Law

Under Article 84 of the Saudi Labor Law, an employee is entitled to an end-of-service award equal to half a month's wage for each of the first five years, and a full month's wage for each subsequent year of service.

Articles 85 through 88 dictate how resignations, fixed-term contractual expiries, and employer-initiated terminations impact vesting proportions. Actuarial models under IAS 19 must accurately distinguish between involuntary exit and voluntary resignation probabilities.

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RELATED GUIDANCE

Further Technical Analysis

AS 15AS 15 · ICAI · COMPANIES ACT, 2013

What is AS 15?

AS 15 (Employee Benefits) is the Indian accounting standard that explains how companies should account for employee benefits such as gratuity, leave encashment, pension and other long-term employee benefits. In simple terms, AS 15 ensures that a company's financial statements reflect not only the benefits it has already paid to employees, but also the obligations that are building up over time. This gives management, auditors and investors a more accurate picture of the company's financial position.

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Ind AS 19IND AS 19 · MCA · IFRS CONVERGENCE

What is Ind AS 19?

Ind AS 19 (Employee Benefits) is the Indian Accounting Standard governing how companies measure and recognise the cost of employee benefits such as gratuity, pension, leave encashment and other post-employment obligations. It sits within the Ind AS framework, India's convergence with IFRS, and mirrors IAS 19 issued by the International Accounting Standards Board.

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