ICICI Bank 2016 Annual Report Download - page 219

Annual Report 2015-2016 217
Schedules
forming part of the Consolidated Accounts (Contd.)
Consolidated Financial Statements
10. Employee benets
Gratuity
The Group pays gratuity, a dened benet plan, to employees who retire or resign after a minimum prescribed period
of continuous service and in case of employees at overseas locations as per the rules in force in the respective
countries. The Group makes contribution to trusts which administer the funds on their own account or through
insurance companies.
The actuarial gains or losses arising during the year are recognised in the prot and loss account.
Actuarial valuation of the gratuity liability is determined by an actuary appointed by the Group. Actuarial valuation of
gratuity liability is determined based on certain assumptions regarding rate of interest, salary growth, mortality and
staff attrition as per the projected unit credit method.
Superannuation fund and National Pension Scheme
The Bank contributes 15.00% of the total annual basic salary of certain employees to superannuation funds, a dened
contribution plan, managed and administered by insurance companies. Further, the Bank contributes 10.00% of
the total basic salary of certain employees to National Pension Scheme (NPS), a dened contribution plan, which
is managed and administered by pension fund management companies. The Bank also gives an option to its
employees allowing them to receive the amount in lieu of such contributions along with their monthly salary during
their employment.
The amounts so contributed/paid by the Bank to the superannuation fund and NPS or to employee during the year
are recognised in the prot and loss account.
ICICI Prudential Life Insurance Company, ICICI Prudential Asset Management Company and ICICI Venture Funds
Management Company have accrued for superannuation liability based on a percentage of basic salary payable to
eligible employees for the period of service.
Pension
The Bank provides for pension, a dened benet plan covering eligible employees of erstwhile Bank of Madura,
erstwhile Sangli Bank and erstwhile Bank of Rajasthan. The Bank makes contribution to a trust which administers
the funds on its own account or through insurance companies. The plan provides for pension payment including
dearness relief on a monthly basis to these employees on their retirement based on the respective employee’s years
of service with the Bank and applicable salary.
Actuarial valuation of the pension liability is determined by an actuary appointed by the Bank. Actuarial valuation of
pension liability is calculated based on certain assumptions regarding rate of interest, salary growth, mortality and
staff attrition as per the projected unit credit method.
The actuarial gains or losses arising during the year are recognised in the prot and loss account.
Employees covered by the pension plan are not eligible for employer ’s contribution under the provident fund plan.
Provident fund
The Group is statutorily required to maintain a provident fund, a dened benet plan, as a part of retirement benets to
its employees. Each employee contributes a certain percentage of his or her basic salary and the Group contributes an
equal amount for eligible employees. The Group makes contribution as required by The Employees’ Provident Funds
and Miscellaneous Provisions Act, 1952 to Employees’ Pension Scheme administered by the Regional Provident
Fund Commissioner and the balance contributions are transferred to funds administered by trustees. The funds are
invested according to the rules prescribed by the Government of India.
Actuarial valuation for the interest rate guarantee on the provident fund balances is determined by an actuary
appointed by the Group.
The actuarial gains or losses arising during the year are recognised in the prot and loss account.