About


The provision of ‘end-of-service gratuity’ (EOSG) payments remains a major challenge for many Middle East-based businesses. The level of gratuity is based on the individual’s salary and length of service and is payable as a lump sum. In the absence of forward planning, this can present a significant financial risk to both employers and employers.

Sovereign Corporate Services provides bespoke solutions that enables employers to build funds against their EOSG liabilities within an employee benefit trust plan. Placing EOSG provision into trust provides enhanced risk management and reduced EOSG costs through early investment. We can also incorporate a savings element within the same structure to help you attract and retain employees.

Sovereign has extensive experience in designing and operating corporate pension schemes. Our clients range from large international businesses to smaller firms just starting out. Sovereign’s team of experienced consultants is on hand to assist throughout the process, from design through to implementation. Sovereign also offers individual portable pension arrangements for internationally mobile employees and senior staff.

Submit your details and get a call back from one of our EOSG Services experts

End-of-Service Gratuity (EOSG) Employee Benefit Plans


Companies operating in the Middle East are generally obliged to offer their staff an ‘end-of-service gratuity’ (EOSG) payment when they leave the company. The level of gratuity is based on the individual’s salary and length of service and is payable as a lump sum. Gratuity rules and terminology vary around the Gulf Cooperation Council (GCC) region but generally operate in a similar fashion.

The provision of EOSG payments remains a major challenge for Middle East-based businesses. In the absence of forward planning, it can present a significant financial risk when staff turnover is higher than anticipated or if the business lacks liquidity when payment is due. It also presents a significant risk for employees because the end-of-service benefits of every staff member are tied up in one single company, their employer.

Sovereign Corporate Services provides bespoke solutions that enables employers to build funds against their EOSG liabilities within an employee benefit plan. The objective of our approach is to take the cash and liability off the employer’s balance sheet by placing it into trust, specifically an employee benefit trust. This money can then be invested and allowed to accumulate, while EOSG payments can be withdrawn as and when required.

We can also incorporate a savings element within the same structure to help you attract and retain employees. The advantages include:

01
Reduced EOSG costs through early investment
02
Increased ability to attract and retain the best talent
03
Additional savings options for employees
04
Facility to reward loyal and valued staff through extra provision
05
Enhanced risk management by placing EOSG provision into trust
06
One simple solution for an internationally mobile workforce
07
Online viewing and access
Get in Touch

Please contact us if you have any questions or queries and your local representative will be in touch with you as soon as possible.