NOTE
14 – LIABILITIES FOR EMPLOYEE BENEFITS, NET
| | | December 31 | | | | | 2024 | | | 2023 | | | A. Composition: | | | | | | | | | | | | | | | | Present value of defined benefit liabilities | | | 260 | | | | 234 | | | Less - fair value of plans’ assets | | | 225 | | | | 204 | | | | | | 35 | | | | 30 | |
| B. Changes in the present value of defined benefit liabilities | | | | December 31 | | | | | 2024 | | | 2023 | | | Balance at beginning of year | | | 234 | | | | 226 | | | Current service cost | | | 7 | | | | 6 | | | Interest cost | | | 12 | | | | 12 | | | Benefits paid | | | - | | | | - | | | Expenses in respect of exchange rate differences | | | (1 | ) | | | (8 | ) | | Net actuarial loss | | | 8 | | | | (2 | ) | | Balance at end of year | | | 260 | | | | 234 | |
C. Plans’
assets
The
plans’ assets include severance pay funds, and the severance pay component in executive insurance policies and in pension funds.
| Changes in the fair value of plan assets |
| | |
2024 | | |
2023 | |
| | |
| | |
| |
| Balance at beginning of year | |
| 204 | | |
| 194 | |
| Expected return on plan assets | |
| 11 | | |
| 10 | |
| Employer contributions | |
| - | | |
| - | |
| Benefits paid | |
| - | | |
| - | |
| Income from exchange rate differences | |
| (1 | ) | |
| (8 | ) |
| Net actuarial gain | |
| 11 | | |
| 8 | |
| Balance at end of year | |
| 225 | | |
| 204 | |
| | |
| | | |
| | |
| Actual return on plan assets | |
| - | | |
| (10 | ) |
| D. Expenses in respect of defined benefit plans |
| | |
For the year ended
December 31, | |
| | |
2024 | | |
2023 | |
| | |
| | |
| |
| Current service cost | |
| 7 | | |
| 6 | |
| Interest cost | |
| 2 | | |
| 12 | |
| Expected return on plans’ assets | |
| - | | |
| 10 | |
| Exchange rate differentials, net | |
| - | | |
| (2 | ) |
| | |
| 9 | | |
| 26 | |
| Presentation in profit and loss: | |
| | | |
| | |
| Cost of revenue | |
| 7 | | |
| 6 | |
| Finance expenses | |
| 2 | | |
| 20 | |
| | |
| 9 | | |
| 26 | |
| | |
| | | |
| | |
| Presentation in other comprehensive income (loss) | |
| (3 | ) | |
| 6 | |
| E. Key actuarial assumptions |
| | |
December 31, | |
| | |
2024 | | |
2023 | |
| | |
| | |
| |
| Discount rate | |
| 5.53 | % | |
| 5.5 | % |
| | |
| | | |
| | |
| The expected weighted average cost of capital on plans’ assets | |
| 5.57 | % | |
| 5.56 | % |
| | |
| | | |
| | |
| Expected pay rise rate | |
| 2.39 | % | |
| 2.41 | % |
| F. Expenses in respect of defined contribution plans | |
For the year ended
December 31, | |
| | |
2024 | | |
2023 | |
| | |
| | |
| |
| Expenses in respect of employee benefits | |
| 9 | | |
| 7 | |
| | |
| | | |
| | |
| Presentation on profit and loss: | |
| | | |
| | |
| Cost of revenue | |
| 3 | | |
| 2 | |
| Research and development expenses | |
| 1 | | |
| 1 | |
| Selling and marketing expenses | |
| 2 | | |
| 1 | |
| General and administrative expenses | |
| 3 | | |
| 3 | |
| | |
| 9 | | |
| 7 | |
|