NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2024 2. Summary of material accounting policies information (cont’d) 2.22 Employee benefits (cont’d) (a) Defined contribution plans (cont’d) Certain subsidiaries in the Group have defined contribution retirement plans covering all of its qualified permanent employees. The pension plans’ assets are managed by Dana Pensiun Lembaga Keuangan (“DPLK”) Manulife Indonesia. 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. The related liability arising from the difference between the cumulative funding since the establishment of the program and the cumulative pension costs charged to the profit or loss during the same period is recognised as employee benefits liabilities in the consolidated balance sheet. (b) Defined benefit plans The Group also provides additional provisions for employee service entitlements in order to meet the minimum benefits required to be paid to qualified employees, as required under the applicable Indonesian Labour Law. The said additional provisions, which are unfunded, are estimated by actuarial calculations using the projected unit credit method. The estimated liability for employee benefits is the aggregate of the present value of the defined benefit obligations at the end of the reporting period. Defined benefit costs comprise the following: – Service cost; – Net interest on the net defined benefit liability; and – Re-measurements of the net defined benefit liability Service costs which include current service costs, past service costs and gains or losses on non-routine settlements are recognised as expense in profit or loss. Past service costs are recognised when the plan amendment or curtailment occurs, or when the Group recognises the related restructuring costs, whichever is the earlier. Net interest on the net defined benefit liability is the change during the period in the net defined benefit liability that arises from the passage of time, which is determined by applying the discount rate to the net defined benefit liability. Net interest on the net defined benefit liability is recognised as expense or income in profit or loss. Re-measurements comprising actuarial gains and losses are recognised immediately in other comprehensive income in the period in which they arise. Re-measurements are recognised in retained earnings within equity and are not reclassified to profit or loss in subsequent periods. Group Overview Financials Other information Sustainability and Governance Operation and Financial Review Annual Report 2024 89
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