What is the Projected Unit Credit Method?

It is a method that attributes a portion of the expected final benefit to each period of service, projects salary and continuation probabilities, and discounts expected cash flows to the valuation date.

Can all employees be valued at once?

Yes. Employees can be entered manually or imported from CSV or Excel, with obligations shown by employee and aggregated by department.

Why is sensitivity analysis important?

It shows how changes in the discount rate, salary growth, employee turnover and retirement age affect the benefit obligation, helping management understand assumption risk.

IAS 19 Employee Benefits Actuarial Calculator

An enterprise tool for estimating the defined benefit obligation using the Projected Unit Credit Method and analyzing service cost, interest cost, remeasurement, future maturities and sensitivity.

An enterprise system, not a single-number calculator

From employee data and assumptions to an estimated obligation and a complete management report

Enter the benefit terms and financial and demographic assumptions, then add one employee or import the full workforce. The tool presents the obligation by employee, annual movement, sensitivity, maturity profile and professional review alerts.

Employees

Records eligible for valuation

Defined Benefit Obligation (DBO)

—

Estimated present value

Net Liability

—

Obligation less plan assets

Data Quality

Completeness and validity of inputs

Quick Actions

Current Alerts

Plan and Actuarial Assumptions

These inputs affect every employee in the valuation. Use documented assumptions consistent with the measurement date and plan terms.

Enterprise Valuation Model

Entity and plan details, benefit formula, assumptions, obligation movement and plan assets.

Setup Completion0%

1Identification

2Benefit Formula

3Assumptions

4Movement

5Plan Assets

Entity and Report Details

These details appear in the report header and determine the measurement date and presentation currency.

Valuation Setup

Report Information

Entity Name *

Benefit Plan Name *

Valuation Date *

Financial Reporting Period

Country / Jurisdiction

Reporting Currency

Prepared By

Entity LogoPNG or WebP is recommended, with a small file size.

Benefit Formula and Attribution Pattern

Define how the final benefit is calculated and attributed to periods of service.

Formula Core

Benefit Formula

Formula Type

Salary Basis

Benefit Attribution Method

Minimum Vesting Service (years)

Benefit days per year — first tier

Service Breakpoint (years)

Benefit days per year — after breakpoint

Daily Pay Divisor

Maximum Benefit (months)0 = no maximum.

Retirement Benefit Percentage (%)

Withdrawal Benefit Percentage (%)

Death-in-Service Benefit Percentage (%)

The default approach allocates the expected final benefit over service up to retirement age. Back-loaded plans or special conditions may require a different attribution pattern and actuarial review.

Financial and Demographic Assumptions

Applied to employees by default, with employee-level overrides available for turnover and retirement age.

Measurement Assumptions

Core Rates

Annual Discount Rate (%) *It should reflect the measurement date, currency and duration of the obligation.

Annual Salary Growth Rate (%) *

Annual Employee Turnover Rate (%)

Simplified Annual Mortality Rate (%)For preliminary analysis only; a certified valuation uses an appropriate mortality table.

Default Retirement Age

Sensitivity Step (%)

Salary Increase Timing

Benefit Payment Timing

Benefit Obligation Movement During the Period

Used to reconcile the opening obligation to the calculated closing obligation.

Reconciliation

Opening Defined Benefit Obligation

Benefits Paid During the Period

Past Service Cost / Plan Amendment

Settled / Derecognized Obligations

Settlement Gain/Loss in Profit or Loss

Other Obligation Movements

Plan Assets and Contributions

Leave all values at zero for an unfunded plan, or enter the asset movement to present the net liability and asset remeasurement.

Optional

Opening Fair Value of Plan Assets

Employer Contributions

Employee Contributions

Actual Return on Plan Assets

Benefits Paid from Plan Assets

Administration Costs Paid from Assets

Assets Transferred on Settlement

Recognizable Asset Ceiling0 = no asset ceiling applied in this estimate.

Employee Data

Add one employee or import a complete workforce list. Do not use national ID numbers; an internal employee ID is sufficient for analysis.

Add New Employee

#	ID	Employee	Department	Age	Service	Salary Basis	Status	Actions

No employee records yet

Add an employee manually or import the bulk template.

Bulk Import

Excel and CSV files are supported. Use the approved template so column names and data types match.

Pre-Valuation Check

Valuation Results and Obligation Movement

Estimated present value, period cost, obligation movement and net position after plan assets.

Defined Benefit Obligation (DBO)—Estimated present value at the measurement date

Current Service Cost—Estimated cost of the next period of service under the same assumptions

Interest Cost—Applied to the entered opening obligation

Net Liability / Asset—Closing obligation less plan assets

Obligation Movement Reconciliation

Item	Amount

Plan Asset Movement and Net Position

Item	Amount

Obligation by Department

Obligation Duration Metrics

Weighted Average Duration—Years to expected benefit cash flows

Average Age—For employees included in the valuation

Average Service—At the valuation date

Funding Ratio—Plan assets ÷ obligation

Detailed Employee Results

Employee	Department	Age	Service	Years to Retirement	Projected Salary	Continuation Probability	DBO	Service Cost

Valuation Quality

Review Alerts

Sensitivity Analysis and Maturity Profile

Measure the effect of key assumptions on the obligation and the distribution of expected cash flows by maturity horizon.

Benefit Obligation Sensitivity

Future Benefit Maturity Profile

Values represent expected undiscounted cash flows within each time band and are not separate accounting obligations.

Key Risk Drivers

Expected Cash Flows by Year

Year from Valuation Date	Retirement	Withdrawal	Death in Service	Total Expected Undiscounted	Present Value

Estimated Actuarial Report

A standalone report for printing or saving as PDF, not a screenshot of the tool interface.

Enter assumptions and employees, then run the valuation to generate the report.

User Guide, Methodology and Sources

Educational content is placed in a separate tab so the workspace remains focused on data, analysis and reporting.

What is an employee benefit obligation under IAS 19?

It is the present value of benefits earned by employees for service in current and prior periods, after projecting the future benefit and the probabilities of continuation and exit, and discounting expected cash flows to the valuation date. It differs from the actual final settlement of an employee whose service has ended; an actuarial valuation measures a future obligation for a group of employees.

How to Use the Tool

Enter the entity details, valuation date and reporting currency.
Define the benefit formula, salary basis, limits and payment percentages on retirement, withdrawal or death.
Enter the discount rate, salary growth, turnover, mortality and retirement age.
Add one employee or download the template and import an employee list from Excel or CSV.
Run the valuation, then review the movement, sensitivity, maturities and alerts before printing the report.

Methodology Used in This Version

The tool uses an estimated Projected Unit Credit model. Salaries are projected to retirement age, the final benefit is calculated under the plan formula, and the earned portion is attributed to service up to the valuation date. Annual probabilities of withdrawal, death and continued service are then applied, and expected payments are discounted using the entered discount rate. Current service cost is the estimated increase related to one additional unit of service.

This model is suitable for preliminary analysis, budgeting and simulation, but it does not include detailed mortality tables by age and sex, full discount-rate yield curves, or every complex attribution and regulatory adjustment.

Understanding the Key Results

DBO: Estimated present value of the defined benefit obligation.
Current service cost: Estimated cost of one additional unit of service for the period.
Interest cost: The effect of the passage of time on the opening obligation using the discount rate.
Remeasurement: The amount required to reconcile the obligation movement to the calculated closing obligation.
Weighted average duration: The average timing of cash flows weighted by their present values.
Sensitivity analysis: The effect of changing one assumption while holding all other assumptions constant.

Frequently Asked Questions

Is this tool a certified actuarial report?

No. It is a preliminary estimation and analysis tool. A report from a qualified actuary is required when professional certification, regulation or external audit requirements demand it.

Can one turnover rate be used for all employees?

Yes for preliminary analysis, but accuracy improves when rates reflect age, service and employee category, or when employee-specific overrides are supported by documented evidence.

Why does the obligation change significantly when the discount rate changes?

Benefits may be paid many years in the future. A lower discount rate usually increases present value, and the effect grows as the obligation duration becomes longer.

Do plan assets reduce the DBO?

No. The DBO is measured separately. The fair value of plan assets is then deducted to determine the net defined benefit liability or asset, subject to any applicable asset ceiling.

Can employee data be imported from an HR system?

Yes, after converting the data to the tool template. Use internal employee IDs and avoid unnecessary sensitive personal data.

Reference Standards and Sources

Always refer to the current version of IAS 19, the benefit plan terms, local law, and relevant market information for the discount rate and demographic assumptions.

IFRS Foundation — IAS 19 Employee Benefits IFRS Foundation — IAS 19 Supporting Material

Important Professional Disclaimer

Results are estimates and depend entirely on data quality, plan terms and assumptions. The tool does not provide a certified actuarial or accounting opinion and does not replace review by a qualified actuary, accountant and auditor. Do not use the report to issue audited financial statements without appropriate professional procedures. Do not place advertisements inside the input form or next to calculation, import or print controls.