Page 98 - Annual report eng 2019

Tycoons Worldwide Group (Thailand) Plc.

The Company expect to pay Baht 2 million of long-term employee benefits during the next year
(2018: Baht 1 million).

As at 31 December 2019, the weighted average duration of the liabilities for long-term employee

benefit is 16 years (2018: 15 years).

Significant actuarial assumptions are summarised below:
(Unit: percent per annum)

Financial statements in which equity
method is applied/Consolidated/

Separate financial statements
2019 2018
Discount rate 1.8 2.9

Future salary increase rate 3.0 - 4.5 3.0 - 4.5
Staff turnover rate (depending on age) 0.0 - 50.0 0.0 - 50.0

The result of sensitivity analysis for significant assumptions that affect the present value of the
long-term employee benefit obligation as at 31 December 2019 and 2018 are summarised

below:
(Unit: Million Baht)
Financial statements in which equity method is applied/

Separate financial statements
As at 31 December 2019 As at 31 December 2018

Increase 0.5% Decrease 0.5% Increase 0.5% Decrease 0.5%
Discount rate (3) 3 (2) 2

Salary increase rate 3 (3) 2 (2)

On 5 April 2019, The Labor Protection Act (No. 7) B.E. 2562 was announced in the Royal
Gazette. This stipulates additional legal severance pay rates for employees who have worked
for an uninterrupted period of twenty years or more, with such employees entitled to receive not

less than 400 days’ compensation at the latest wage rate. The law was effective from 5 May
2019. This change is considered a post-employment benefits plan amendment and the
Company has additional long-term employee benefit liabilities of Baht 9 million as a result. The

Company reflects the effect of the change by recognising past service costs as expenses in the
income statement of the current year.

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