Valtech’s Long Service Payment (LSP) Valuation Services for Large Companies

Written on 04/17/2025

Valtech delivers tailored LSP valuations for large enterprises: compliance, audit-ready insights, and custom models for complex workforce liabilities.

Tailored Valuations for Complex Workforce Structures

Not all valuation firms are equipped to handle the challenges of Long Service Payment (LSP) valuations for large companies with substantial and diverse workforces. At Valtech, we understand that scale brings complexity, especially when it comes to employee benefit schemes.

Large organizations often employ individuals across various job categories—from administrative and management staff in corporate offices to front-line personnel in retail or facilities management roles. Many also engage contract staff under unique employment terms, such as gratuity-based compensation or tailored vesting arrangements.

These diverse employment structures create a layered landscape of benefits and obligations. For example, different subsidiaries may operate with varying employee benefit schemes and turnover patterns. Salary growth rates often differ by job function or department. Moreover, large companies typically require more granular reporting for management accounting, cost control, and HR analytics.

Valtech’s Tailored LSP Valuation Programme

Valtech’s LSP valuation programme is specifically designed to handle these complexities. We go beyond the standard calculations to deliver insights and actionable data, ensuring our clients meet both regulatory and internal reporting requirements.

Our Proven Capabilities Include:

Handling special conditions such as:
- Voluntary contributions with customized vesting schemes
- ORSO arrangements
- Gratuity-based compensation structures
- Contract staff integration
- Combined evaluation of LSP, Severance Payment (SP), and gratuities
- Review and analysis of clients’ existing valuation models to identify causes of variances from actual outcomes

Valtech’s Solutions

Incorporating Loyalty Factors

We integrate loyalty and length-of-service metrics into our models, resulting in more accurate estimates of LSP liabilities. This helps avoid understatements related to projected staff turnover, particularly for long-tenured employees.

Detailed Breakdown for Audits

Our reports offer a detailed individual-level breakdown to support external audits. This ensures a smooth audit process and addresses the formal documentation standards expected by auditors.

Tailored Solutions for Diverse Organizations

From listed corporations and MNCs to NGOs and conglomerates, we bring deep experience in designing actuarial models that support a wide range of benefit schemes—including MPF, ORSO, voluntary contributions, vested and non-vested portions, gratuities, and early withdrawals.

On Premise LSP Valuation Programme

For clients who prefer greater control and the flexibility to update results more frequently in-house, Valtech offers a custom-built LSP Valuation Programme. Delivered with a user licence for unlimited internal use, this solution empowers your team to run valuations on demand while maintaining the robustness of our actuarial models.

About Valtech Valuation

Valtech Valuation is a professional valuation firm accredited with ISO-9001 in valuation advisory services. The firm is renowned for its expertise in advanced valuation techniques, customized valuation models, data-driven insights, and adherence to compliance and reporting standards. The firm has a solid track record in valuation advisory for listed companies, private equity, fund managers, and financial institutions. Valtech’s qualified team comprises members with PhDs, CPA (HKICPA), CFA, Chartered Valuation Surveyors of the Royal Institution of Chartered Surveyors, and valuers accredited with Business Valuation (ABV) by AICPA and CVA qualifications in Singapore. Valtech continues to expand into more markets by leveraging its valuation platform and recruiting local experts.

Valtech Valuation

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