ICICI Bank 2015 Annual Report Download - page 204

Schedules
forming part of the Consolidated Accounts (Contd.)
202 Annual Report 2014-2015
Consolidated Financial Statements
10. Employee benefits
Gratuity
The Group pays gratuity, a defined benefit 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 profit and loss account.
Actuarial valuation of the gratuity liability is determined by an appointed actuary. 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
The Bank contributes 15.00% of the total annual basic salary of certain employees to superannuation funds, a defined
contribution plan, managed and administered by insurance companies for its employees. The Bank also gives an
option to its employees, allowing them to receive the amount contributed by the Bank along with their monthly salary
during their employment.
The amount so contributed/paid by the Bank to the superannuation fund or to employee during the year is recognised
in the profit 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 defined benefit 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 profit 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 defined benefit plan, as a part of retirement benefits 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 appointed
actuary.
The actuarial gains or losses arising during the year are recognised in the profit and loss account.
Leave encashment
The Group provides for leave encashment benefit based on actuarial valuation conducted by an independent actuary.