Serba Dinamik Annual Report 2021

Registration No: 201501042584 (1167905-P) Serba Dinamik Holdings Berhad (Incorporated in Malaysia) 103 22. Employment benefits 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 the employees’ length of service 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 20 years and above, and with 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 years 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. Group Financial period 30.6.2021 Financial year 31.12.2019 RM’000 RM’000 At beginning of the period/year 691 643 Included in profit or loss Current service cost (178) 48 At end of the period/year 513 691 Actuarial assumptions Principal actuarial assumptions at the end of the reporting date: Group 30.6.2021 31.12.2019 Per annum Per annum Average years of service of employees 6.76 years 5.78 years Annual discount rate 7.20% 8.20% Salary increment rate 12.0% 5.0% Normal pension rate 56 years 56 years Mortality rate Table Mortality Indonesia (TMI) Table Mortality Indonesia (TMI) Sensitivity analysis There is no sensitivity analysis performed as any change will be insignificant to the Group.