Page 179 - Thailand Post Annual Report 2024

Part 1
Overview of the Organization
Part 2
Business Trends
Part 3
Business Model
Part 4
Strategies and Resource Allocation
Part 5
Risk
Part 6
Corporate Governance
Part 7
Operating Results
Part 8
Other Information
3.13 Employee benefits
Pension Fund for Thailand Post Officers
The Pension Fund for Thailand Post Officers is operated in accordance with Regulations of the Thailand Post Board of Directors, Issue 6, on the Pension Fund for Thailand Post Officers, B.E. 2548 (2005), and its first amendment of B.E. 2549 (2006). The purpose of the fund is to provide financial assistance to employees and workers who retire from work. The Company pays contributions to the Pension Fund on a monthly basis at the rate of 10% of the officers’ salary and additional contribution at the rate equal to an obligation that the Company is required to pay at the end of accounting year calculated by multiplying the last month salary of the officers with the years of service in accordance with regulations of the Pension Fund.
Proceeds from assets of the Pension Fund are recognized as the Company’s income whereas contributions are recognized as expenses in the statement of profit and loss in the occurring period. Assets of the Pension Fund are presented in the Company’s statements of financial position.
Provident Fund
On 28 August 2012, the Company established and registered its provident fund under the name of “Registered Provident Fund of Thailand Post Company Limited Employees” by receiving a transfer of all businesses, rights, debts, liabilities, assets, directors, and members of Thailand Post Company Limited from the Registered Provident Fund of Employees of CAT Telecom Public Company Limited and Thailand Post Company Limited.
Those officers whose employment began before 13 December 1996 can choose to be members of the Provident Fund or the Pension Fund. However, the officers whose employment started after 13 December 1996 have to be members of the Provident Fund. When the employees’ and workers’ employment is terminated or if they resign from the fund without leaving work, they are entitled to benefits from the fund in accordance with regulations of the Provident Fund. The Company has no legal or constructive obligation to make additional payment if the Provident Fund does not have enough assets to pay all benefits to the officers. Contributions made by the Company to the Provident Fund are recorded as expenses in the statement of profit and loss in the occurring period. Assets of the Provident Fund are separated from those of the Company and managed by Kasikorn Asset Management Company Limited, MFC Asset Management Public Company Limited and SCB Asset Management Company Limited.
Severance Pay according to Labor Law - defined benefit projects
Pursuant to labor laws under the Notification of the State Enterprise Labor Relations Committee on Minimum Standards of Employment Conditions in State Enterprises (4th Edition), when employers discharge employees and workers by dismissing or terminating employment for no wrongdoing; if employees and workers have worked continuously for more than 120 consecutive days, they are entitled to severance compensation from the employer for 30 days; with the highest rate being when employees and workers have worked for 20 consecutive years, they are entitled to severance compensation from the employer for 400 days. In the case of employees and workers who have retired and performed work for 5 years and up, they are entitled to reward for 180 days of work; with the highest rate being reward for 400 days of work for employees and workers who performed work for 20 consecutive years, then retired.
The Company and its subsidiaries calculate liabilities under the post-employment benefit projects by using the projected unit credit method and independent experts have assessed such obligations based on actuarial principles.
Actuarial gains and losses for post-employment benefit projects are recognized immediately in other comprehensive income.
Cost of past services related to the correction of projects will be recognized as expenses in the statements of profit and loss when the correction of projects is effective.
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