MKH Annual Report 2020

193 MKH BERHAD 29. PROVISIONS (CONT’D) (a) Post-employment benefit obligations (Cont’d) Sensitivity analysis The sensitivity analysis belowhas been determined based on reasonably possible changes in the discount rate and future salary increase occurring at the reporting date, while holding all other assumptions constant. The Group Increase/(Decrease) in profit 2020 RM 2019 RM Discount rate increase by 1% 1,592,570 1,411,923 Discount rate decrease by 1% (1,875,762) (1,665,602) Future salary increase by 1% (1,881,374) (1,675,289) Future salary decrease by 1% 1,626,228 1,445,264 The sensitivity analysis presented above has been determined using deterministic method and may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. At 30 September 2020, the weighted-average duration of the defined benefit obligation was 15.68 to 19.16 years (2019: 15.52 to 18.50 years). The benefits, which reflect the expected future services, as appropriate are expected to be paid as follows: The Group 2020 RM 2019 RM Within 1 year 1,112,637 862,263 Between 2 and 5 years 7,118,381 6,661,519 After 5 years 16,790,635 16,848,935 25,021,653 24,372,717 (b) Retirement gratuity Provision for retirement gratuity are for certain eligible directors. The accounting policy in respect of the retirement gratuity scheme is disclosed in Note 3(f)(iii). Notes to the Financial Statements FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2020