Serba Dinamik Annual Report 2018

240 ANNUAL REPORT 2018 SERBA DINAMIK HOLDINGS BERHAD 17. Employment benefits - Group In accordance with Indonesian Labor Law No.13/2003, the Group provides post employment benefits to the eligible employees of an indirect subsidiary upon terminating their employment or upon attaining retirement age. The benefits payable are determined based on employees length of services and compensation at termination or retirement. The Group operates the post employment benefits plan for eligible employees of an indirect subsidiary who are Indonesians with age above 20 years and continuous service of at least a year from date of hire. The benefits payable on retirement are based on length of service, input factor and base pay. The retirement age is 55 for employees of the subsidiary. The post employment benefit plan exposes the Group to actuarial risks such as longevity risk, financial risks such as change in discount rates and demographic risk such as turnover rate not being borne out. The following table shows a reconciliation from the opening balance to the closing balance for defined benefit liability and its components. RM’000 Balance at 1 January 2017 492 Included in profit or loss Current service cost 100 _________ Balance at 31 December 2017/1 January 2018 592 Included in profit or loss Current service cost 51 _________ Balance at 31 December 2018 643 ======== Actuarial assumptions Principal actuarial assumptions at the end of the reporting date 2018 2017 Average years of service of employees 5.78 years 4.95 years Annual discount rate 8.80% p.a. 7.2% p.a. Salary increment rate 10% p.a 10% p.a Normal pension rate 56 years 56 years Mortality rate Table Mortality Table Mortality Indonesia (TMI) Indonesia (TMI) ============ ============ Sensitivity analysis There is no sensitivity analysis performed as any change will be insignificant to the Group. N O T E S T O T H E F I N A N C I A L S TAT E M E N T