Updated on: 26th Aug 2025
We provide professional actuarial valuation in Bangladesh special focus on gratuity and pension valuation. The main objective of actuarial valuation is to determine the present value of payments that would be given by the company to its employees in the future as part of an employee benefit.
Actuarial valuation in Bangladesh means to compare the assets and liabilities of a company for example employee benefits funds like gratuity funds, provident funds, pension etc., carried out by an experienced actuary. It is imperative for an organization to evaluate a defined benefit plan and its feasibility which would eventually assists the organization to make cost-cutting decisions.
There are numerous reasons why an employer may need actuarial valuation in Bangladesh from an experienced actuary like Bangladesh Consultant.
The most frequent plans that fall within the scope of actuarial valuation in Bangladesh are pension, leave, and gratuity plans. However, actuarial valuation is not necessary for all sorts of employee benefit schemes. For instance, many leave programs that cannot be cashed out do not need to be valued by an actuary. Generally actuarial valuation is needed for the following funds in Bangladesh:
An actuarial report in Bangladesh generally contains the following sections:
Section 1: Purpose and Scope of the work assigned
Economic assumptions include:
Demographic assumptions include:
This contains a summary of the principal rules of the scheme on which actuarial valuation is done.
This section provides the Report under IAS 19(R) in respect of Gratuity Plan. There are several tables which is provided which are as follows:
Table I: Assumptions
Table II: Change in Present Value of Obligations
Table III: Change in Fair Value of Plan Assets
Table IV: Movement in assets ceiling
Table V: Disaggregation of plan assets
Table VI: Other Comprehensive Income
Table VII: The amount to be recognized in Balance Sheet Statement
Table VIII: Expense Recognized in Statement of Profit and Loss
This contains sections like:
The Glossary contains the definition of different terms used in the actuarial report.
When an employee’s job with an employer comes to an end, the company often provides the employee with a benefit known as gratuity as per the Labour Act 2006 and Bangladesh Labour Rules 2015 or the Bangladesh Labour (Amendment), Act 2015 .
In accordance with the Bangladesh Labour (Amendment), Act 2015, Gratuity corresponds to payments of at least thirty days, at the rate of the last salary earned by an employee, for each year of accomplishment of responsibilities or for hours worked over six months; or, in the year where he served more than ten (ten) years, the earnings of forty-five (forty-five) days according to the last salary he earned, which are due to the such action while leaving their job.
This is in supplementary to any payment, salary, or compensation in lieu of notice payable by an employer as a consequence of the terminating of a worker’s employment for different causes under the Act.
Leaves, sometimes known as paid absences, are an essential component of the entire compensation package that an employer provides for its staff members. The employees have the right to take leaves, which enables them to be away from work for a set number of days each year for a qualified cause; nevertheless, they would still be compensated for those days.
In certain circumstances, a monetary payout in place of unused leaves may be provided, either while the individual is still serving in the company or upon their termination of employment from the company. Typically, the rules and benefits of leave programs are established in the human resources policy of an organization.
In most cases, businesses have complete discretion over the policies and procedures that govern the leave programs they opt to administer; nonetheless, some statutory minimums must be met. As a result, the companies have quite different policies regarding their leave programs. The vast majority of organizations provide many kinds of leave programs that operate concurrently. For instance:
In order to comply with the accounting standards that are relevant to the employers, the employers are required to record a liability in their financial statements in regard to a variety of leave schemes.
According to the majority of accounting rules and Accounting Standards, short-term benefits include any accumulated vacation days or sick days that are anticipated to be used up entirely within the following year after the balance sheet was created.
Any accrued leave balances in respect of any leave plan, such as privilege leave, sick leave, or maternity leave, gives rise to an obligation that must be reflected on the balance sheet, regardless of whether or not the leave balances are encashable.
An actuarial valuation will be necessary in the event that an employee has earned or accumulated certain leaves in the past (that is previous to the balance sheet date) and is eligible to use those leaves in the future, at least 12 months after the balance sheet date.
Actuarial valuation is also necessary in situations, which may include leaves that have not yet accumulated, but in which workers may earn the right to a block of leaves after providing service for a certain amount of time. For an example, the provision of, say, five paid leaves upon reaching the completion of three years of employment. Let’s refer to these leaves as Type 2 leaves.
Employers are nevertheless required to maintain liability for the majority of leave programs, despite the fact that an actuarial valuation is not relevant to many of the leave programs.
The actuarial valuation of a pension fund in Bangladesh is done to ascertain whether the assets that the Pension Fund owns is sufficient to meet its debts and obligations at a future period.
Bangladesh Consultant’s professional actuaries provide actuarial services in Bangladesh to entities or corporations, including several Multi-National Companies and insurance companies, to prepare for the future by evaluating current risk or appraisal through actuarial computation and allowing the client to maintain accurate provisions in the accounting books.
Actuarial services assess risk and detect business uncertainty. Calculating risk and its worth requires math and statistics. Actuaries from Bangladesh Consultant helps to estimate the economic cost connected to the unforeseen future such as natural catastrophe, death, leaving of job by the employees or accidents.
Bangladesh Consultant’s primary objective is to operate efficiently by developing a solid and fundamental knowledge of the client in connection to actuarial work in Bangladesh. The actuarial services of Bangladesh Consultant will actively help the public in all elements of uncertainty.
Regarding the financing of retirement benefits, we provide a variety of approaches and plans that may be conveniently implemented. Such services are fairly difficult to provide in a dynamic sector. We intend to provide the highest quality actuarial services in Bangladesh.
In addition, the services incorporate reliable loss reserve analysis. Actuaries of Bangladesh Consultant or actuaries offering services in Bangladesh via Our conform to particular standards and certifications and fulfill client expectations, having met the necessary educational and professional requirements. In expanding the services and art of the actuarial profession, we adhere to the anticipated and needed level of professionalism of an actuary.
Contact our experienced team for actuarial valuation services in Bangladesh.
Actuarial valuation in Bangladesh means to compare the assets and liabilities of a company — for example gratuity funds, employees’ funds, and pension schemes — carried out by an experienced actuary in Bangladesh. It is imperative for an organization to evaluate a defined benefit plan and its feasibility, which would eventually assist the organization to make cost-cutting decisions.
The most frequent plans that fall within the scope of actuarial valuation in Bangladesh are pension, leave, and gratuity plans. However, actuarial valuation is not necessary for all sorts of employee benefit schemes. For instance, many leave programs that cannot be cashed out do not need to be valued by an actuary.
To comply with the accounting standards like International Accounting Standards 19 (IAS 19), actuarial valuation of defined benefit plans — such as pension, gratuity, and leave schemes — has to be done by a certified actuary in Bangladesh.
An actuarial report in Bangladesh generally contains the following sections: Purpose and Scope of the work assigned, Summary of Results, Data, Assumptions, Provisions, Disclosure Format, Reconciliation of Expense in Profit and Loss Statement, Reconciliation of Liability in Balance Sheet, Amount, Timing and Uncertainty of Future Cash Flows, and Glossary.
In accordance with the Bangladesh Labour (Amendment), Act 2015, gratuity corresponds to payments of at least thirty days, at the rate of the last salary earned by an employee, for each year of accomplishment of responsibilities or for hours worked over six months; or, in the year where he served more than ten (10) years, the earnings of forty-five (45) days according to the last salary he earned, which are due while leaving their job. This actuarial valuation gratuity calculation is essential for compliance and financial reporting.
An actuarial valuation will be necessary in the event that an employee has earned or accumulated certain leaves in the past (that is, previous to the balance sheet date) and is eligible to use those leaves in the future, at least 12 months after the balance sheet date. This applies to actuarial valuation of leave encashment and other leave benefits in Bangladesh.
The actuarial valuation of a pension fund in Bangladesh is done to ascertain whether the assets that the pension fund owns are sufficient to meet its debts and obligations at a future period. This actuarial valuation pension analysis ensures both compliance and financial accuracy.
Common complications with actuary services in Bangladesh include inaccurate assumptions, incorrect data, improper valuation model, complex reporting, and complex and not properly outlined benefit plans.
Reporting requirements include: amount of contributions required for previous service liabilities under the schemes, required monthly contribution rate to the schemes for estimating future-service liabilities, contribution required for existing pension, determining the present value of past service obligations for gratuity and superannuation schemes, calculating the current service cost and expected future service contribution rate as per IAS 19, preparing a repairing contribution plan if needed, and preparing the accounting disclosure in line with IAS 19 for all schemes.
It is mandatory for the Bangladesh Accounting Standards, Companies Act 1994, Income Tax Act 2023
Gratuity valuation is conducted on yearly basis.
Gratuity funds, and trust deeds, rules, Bank statements, employee attrition rules, and inputs on the valuation assumptions.
Yes, as per the Companies Act 1994 and Income Tax Ordinance Act 2023.
Bangladesh Consultant’s professional actuaries provide actuarial valuation Bangladesh services to entities or corporations, including several multi-national companies and insurance companies, to prepare for the future by evaluating current risk or appraisal through actuarial computation and allowing the client to maintain accurate provisions in the accounting books. Please contact our expert team for actuarial services.