130.
INDOFOOD AGRI RESOURCES LTD
ANNUAL REPORT 2015
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For the financial year ended 31 December 2015
28.
EMPLOYEE BENEFITS
Certain subsidiaries of the Group have defined benefit retirement plans covering substantially all of their qualified
permanent employees.
The Group’s contributions to the funds are computed at 10.0% and 7.0% of the basic pensionable income for staff and
non-staff employees, respectively. Total pension cost charged to operations in 2015 is Rp19.4 billion (2014: Rp16.8 billion).
On top of the benefits provided under the above-mentioned defined benefit retirement plans, the Group has also
recorded additional provisions for employee service entitlements in order to meet the minimum benefits required to
be paid to the qualified employees, as required under the labor law in Indonesia. The amounts of such additional
provisions were determined based on actuarial computations prepared by an independent firm of actuaries using the
“Projected Unit Credit” method.
Group
Note
2015
2014
Rp million
Rp million
Employee benefits expenses (including directors):
Wages and salaries
1,254,012
1,278,468
Provision for employee benefits
223,757
278,317
Contribution to defined contribution pension plan
52,947
16,846
Training and education
19,369
43,799
8
1,550,085
1,617,430
As at 31 December 2015, the balance of the related actuarial liability for employee benefits is presented as “Employee
benefits liabilities” in the consolidated balance sheet.
Changes in the defined benefit obligations are as follows:
Group
2015
2014
Rp million
Rp million
Benefit obligation at 1 January
1,803,240
1,555,851
Benefits paid
(82,794)
(49,486)
Changes charged to profit or loss
Current service cost
134,062
144,426
Past service cost
(49,312)
55
Interest cost on benefit obligations
144,316
140,027
Net actuarial (gain)/loss recognised during the year
(5,152)
3,169
Gain on curtailments and settlements
(157)
(9,360)
Sub-total
223,757
278,317
Re-measurement (gain)/loss in other comprehensive income
Actuarial changes arising from changes in financial assumptions
(135,545)
(6,576)
Experience adjustments
(64,467)
25,134
Sub-total
(200,012)
18,558
Benefit obligation at 31 December
1,744,191
1,803,240
