Page 104 - PEA_AnnualReport_2016

Provincial Electricity Authority is required to make a payment of interest at the interest rate of savings account
for state enterprises specifed by rung Thai ank ublic Company imited by depositing into the Interest from
lectricity sage uarantee und . In case of working capital defciency or liquidity diffculty, the repayment can
be postponed under the approval of the Governor and should be reported to the Board of Directors.

3.16 Employee Gratuity Fund
Provincial Electricity Authority has established Employee Gratuity Fund for the purpose of giving aid to
employees in case of termination without guilt in accordance with the Regulations of the Provincial Electricity
uthority on mployee ratuity und and eneft for mployees, . . 2522 (19 9). rovincial lectricity
Authority pays monthly contribution at the rate of 10% of employee salaries and recognizes as an expense in the
statements of comprehensive income of Provincial Electricity Authority. In this regard, transactions of employee
gratuity fund are included in the fnancial statements of rovincial lectricity uthority and also eliminate the
related party transactions.

3.17 Employee benefts
ort-t r p o n fits
Short-term employee benefts comprise salaries, overtimes, bonuses, compensated
absences and other short-term benefts in accordance with the contract of employment. The Short-term
employee benefts will be recognized as employee expenses in the statements of comprehensive income on
accrual basis.
ost- p o nt n fits
fin ontri tion p an
Provincial Electricity Authority has established the provident fund in accordance with the
Provident Fund Act, B.E. 2530 (1987) which employees have option to pay into the fund accumulated at the rate
of 3 – 15% of the salary of each and Provincial Electricity Authority will pay into the fund at the rate of 9 – 11%
of salary of members of the fund to defned contribution plans.
Provincial Electricity Authority’s contributions are recognized as employee expenses in the
statements of comprehensive income. Provincial Electricity Authority has also established employee gratuity
fund according to Note 5.25.

fin n fit p an
rovincial lectricity uthority s defned beneft plan comprises remuneration under the State
Enterprise Labor Relations Act, B.E. 2543 (2000), compensation under Labor Law, compensated absences of
employees who are dismissed without committing an offense under the law, souvenir for retired employees and
other post employment benefts in accordance with the contract of employment.
Since anuary 1, 2011, the estimation of employee benefts are calculated by the actuarial
technique using the Projected Unit Credit Method. This method estimate the present value of expected future
payments which are calculated on the basis of employee salaries, turnover rate, mortality, length of service and
other factors.
rovincial lectricity uthority recognizes provisions for defned beneft plan in the statements
of fnancial position at net present value of employee beneft obligations based on unrecognized past service cost
and fair value of pro ect assets (if any). rovincial lectricity uthority also recognizes defned beneft plan expenses
as expenses related to employment in the statements of comprehensive income.
Actuarial gains (losses) occurred are recognized in the statements of comprehensive income.

104 SMART PEA
Annual Report 2016 Provincial Electricity Authority