Constance Hotels Services Limited | Annual Report 2025

207 ANNUAL REPORT 2025

Notes to the Financial Statements Year ended December 31, 2025

Notes to the Financial Statements Year ended December 31, 2025

18. EMPLOYEE BENEFIT LIABILITIES (CONT’D)

18. EMPLOYEE BENEFIT LIABILITIES (CONT’D)

(a) Defined pension benefits (cont’d)

(b) Other post retirement benefits (cont’d)

(xi) The funding requirements are based on the pension fund’s actuarial measurement framework set out in the funding policies of the plan.

(iv) Sensitivity analysis on other post retirement benefit obligations at end of the reporting date:

THE GROUP 2025

2024

(xii) The Group expects to pay MUR 37.2 million in contributions to its post-employment benefit plans for the year ending December 31, 2026.

MUR'000

MUR'000

December 31, Decrease in discount rate (1% movement) Increase in discount rate (1% movement) Increase in future long term salary (1% movement) Decrease in future long term salary (1% movement)

(b) Other post retirement benefits

18,274 15,415 17,484 15,088

14,219 11,825 14,331 12,139

Other post retirement benefits comprise mainly of gratuity on retirement payable under the Workers’ Rights Act 2019 and other benefits.

(i) The amounts recognised in the statement of financial position are as follows:

(c) Other long term benefits

THE GROUP 2025

2024

(i) The amounts recognised in the statement of financial position are as follows:

MUR'000 144,983

MUR'000

THE GROUP 2025

Present value of unfunded obligations

109,159

2024

(ii) Movement in the liability recognised in the statements of financial position:

MUR'000

MUR'000

14,659

Present value of funded obligations

25,221

THE GROUP 2025

2024

These liabilities pertain to employees who are entitled to vacation leaves prescribed under part V of the Workers’ Right Act 2019 (WRA)

MUR'000 109,159

MUR'000

At January 1,

100,969 15,885 (6,322) (1,373) 109,159

(ii) Movement in the liability recognised in the statements of financial position:

17,397 18,466

Charged to profit or loss (a)

Charged/(credited) in other comprehensive income

THE GROUP 2025

(39)

Benefits paid

2024

144,983

MUR'000

MUR'000

25,221

At January 1,

-

(a) Included in profit or loss - Current service cost

5,450

Charged to profit or loss (a)

25,221

11,378

8,414 2,375 5,096

(16,012)

Credited in other comprehensive income

-

-

- Past service cost

14,659

25,221

6,019

- Net interest expense

17,397

15,885

4,054

(a) Included in profit or loss

956

471 925

- Current service cost

23,420

(iii) The principal actuarial assumptions used for the purposes of the actuarial valuations were:

- Past service cost

845

5,450

2025

2024

- Net interest expense

25,221

%

%

5.5- 5.9

Discount rate

4.9-5.2

2.5

Future salary growth rate

2.5