EOSB calculator — Article 39 in code

The two bands — visualised

Cumulative days accrued — sketch

The formula

years_of_service = (last_day - joining_date) / 365.25

if years_of_service <= 3:
    days_accrued = years_of_service * 15
else:
    first_band  = 3 * 15            # = 45 days
    second_band = (years_of_service - 3) * 30
    days_accrued = first_band + second_band

daily_rate = basic_salary / 30      # configurable

eosb = days_accrued * daily_rate

Configurable settings

Worked example 1 — exactly 3 years

Employee joined 1-Jan-2023. Last day 31-Dec-2025. Basic salary OMR 950.

• Service = 3.000 years
• First band: 3 × 15 = 45 days
• Second band: 0 days (no excess over 3 years)
• Daily rate: 950 / 30 = 31.667 OMR
• EOSB: 45 × 31.667 = 1,425.000 OMR

Worked example 2 — 4.25 years

Employee joined 1-Jan-2022. Last day 31-Mar-2026. Basic salary OMR 850.

• Service = 4.250 years
• First band: 3 × 15 = 45 days
• Second band: 1.25 × 30 = 37.5 days
• Total accrued: 82.5 days
• Daily rate: 850 / 30 = 28.333 OMR
• EOSB: 82.5 × 28.333 = 2,337.49 OMR

Worked example 3 — under 1 year

Employee joined 1-Aug-2025. Last day 31-Jan-2026. Basic salary OMR 600.

• Service = 0.5 years
• First band: 0.5 × 15 = 7.5 days
• Daily rate: 600 / 30 = 20 OMR
• EOSB: 7.5 × 20 = 150.000 OMR

(Some firms have a minimum-service-period before EOSB accrues — check the contract. The system supports both: default policy = pro-rate from day 1.)

The monthly snapshot table

employee_eosb_accruals stores one row per (employee × period_year × period_month) with:

• years_of_service at month-end
• basic at month-end
• daily_rate
• days_accrued_to_date
• accrued_amount
• currency (OMR)
• is_settlement flag (true on the final month)

UNIQUE (employee_id, period_year, period_month) makes the cron idempotent.

IAS 19 treatment

EOSB is a defined-benefit obligation per IAS 19. Treatment:

• P&L recognition: monthly accrual = current-month change in EOSB liability. Hits "Employee benefits expense".
• SFP recognition: cumulative liability = sum of all employees' accrued EOSB. Disclosed under "Provisions" or "Other long-term employee benefits".
• Disclosure: Note 19 (Provisions) of the FS — opening + accrual + paid - released = closing.

The aggregate of employee_eosb_accruals at any month-end IS the IAS 19 EOSB provision. M19 disclosure compliance flags this as a mandatory note.

Settlement (paid event)

When EOSB is paid (typically as part of final settlement):

1. Final settlement record is created with EOSB component pulled from latest snapshot
2. Approval → Payment
3. Last snapshot row marked is_settlement=1
4. Liability releases (Dr Provision Cr Cash)
5. Employee's accrual stream stops (status flips to terminated)

Audit perspective — defending the number

An external auditor (TPL-AA) will test the EOSB provision. The defence:

• Sample test: pick 5 employees, recompute EOSB independently using the formula, compare to employee_eosb_accruals latest row. Difference should be zero.
• Completeness: count of active employees in employees matches count in latest-month snapshot.
• Cut-off: for any employee terminated in the period, check if final settlement was paid + whether liability was released.
• Disclosure: Note 19 movement table reconciles to GL.