v3.25.2
Net Employee Defined Benefit Liabilities
 12 Months Ended
Dec. 31, 2024
Net Employee Defined Benefit Liabilities [Abstract]  
NET EMPLOYEE DEFINED BENEFIT LIABILITIES
NOTE 19 –NET EMPLOYEE DEFINED BENEFIT LIABILITIES

 

Employee benefits consist of post-employment benefits and other long-term benefits.

 

Post-employment benefits:

 

According to the labor laws and Severance Pay Law in Israel, the Company is required to pay compensation to an employee upon dismissal or retirement or to make current contributions in defined contribution plans pursuant to section 14 to the Severance Pay Law, as specified below. The Company’s liability is accounted for as a post-employment benefit. The computation of the Company’s employee benefit liability is made according to the current employment contract based on the employee’s salary and employment term which establish the entitlement to receive the compensation.

 

The post-employment employee benefits are normally financed by contributions classified as defined benefit plan or as defined contribution plan, as detailed below.

 

a.Defined contribution plans:

 

Section 14 to the Severance Pay Law, 1963 applies to part of the compensation payments, pursuant to which the fixed contributions paid by the Group into severance pay funds and/or policies of insurance companies release the Group from any additional liability to employees for whom said contributions were made. These contributions and contributions for benefits represent defined contribution plans.

 

   Year ended
December 31,		 
   2024   2023 
   USD in thousands 
           
Expenses in respect of defined contribution plans   1,632    2,264 

 

b.Defined benefit plans:

 

The Group accounts for that part of the payment of compensation that is not covered by contributions in defined contribution plans, as above, as a defined benefit plan for which an employee benefit liability is recognized and for which the Group deposits amount in central severance pay funds or accrue for such provision (when the deposits are not made on time) in qualifying insurance policies.

c.Changes in the defined benefit obligation and fair value of plan assets

 

2024

 

   Expenses recognized in profit or loss   Gain (loss) from remeasurement
in other comprehensive income		   Contributions     
   Balance
as of
January 1,
2024		   Current
service
cost		   Net
interest
expense		   Past
service
cost and
effect of
settlements		   Total
expense
recognized
in profit
or loss
for the
period		   Payments
from the
plan		   Return
on plan
assets
(excluding
amounts
included
in net
interest
expenses)		   Actuarial
gain (loss)
arising
from
changes in
demographic
assumptions		   Actuarial
gain (loss)
arising
from
changes in
financial
assumptions		   Actuarial
gain (loss)
arising
from
experience
adjustments		   Total
effect
on other
comprehensive
income
for the
period		   Effect of
changes in
foreign
exchange
rates		   by
employer		   by
plan’s
participants		   Balance
as of
December 31,
2024		 
   NIS in thousands 
Defined benefit obligation   3,135    126    150    -    276    (537)   -    -    (13)   36    23    (21)   -    -    2,876 
Fair value of plan assets   (2,266)   -    (108)   28    (80)   424    (191)   -    -    -    (191)   13    (125)   -    (2,225)
                                                                            
Net defined benefit liability (asset)   869    126    42    28    196    (113)   (191)   -    (13)   36    (168)   (8)   (125)   -    651 
   Expenses recognized in profit or loss   Gain (loss) from remeasurement
in other comprehensive income		   Contributions     
   Balance
as of
January 1,
2023		   Current
service
cost		   Net
interest
expense		   Past
service
cost and
effect of
settlements		   Total
expense
recognized
in profit
or loss
for the
period		   Payments
from the
plan		   Return
on plan
assets
(excluding
amounts
included
in net
interest
expenses)		   Actuarial
gain (loss)
arising
from
changes in
demographic
assumptions		   Actuarial
gain (loss)
arising
from
changes in
financial
assumptions		   Actuarial
gain (loss)
arising
from
experience
adjustments		   Total
effect
on other
comprehensive
income
for the
period		   Effect of
changes in
foreign
exchange
rates		   by
employer		   by
plan’s
participants		   Balance
as of
December 31,
2023		 
   NIS in thousands 
Defined benefit obligation   3,163    152    150    (212)   90    (36)   -          -    (24)   36    12    (94)   -    -    3,135 
Fair value of plan assets   (2,123)   -    (104)   111    7    29    (109)   -    -    -    (109)   60    (130)   -    (2,266)
                                                                            
Net defined benefit liability (asset)   1,040    152    46    (101)   97    (7)   (109)   -    (24)   36    (97)   (34)   (130)   -    869 
d.The principal assumptions underlying the defined benefit plan:

 

   2024   2023 
   % 
         
Discount rate (1)   5.32    5.57 
Expected rate of salary increase   3.18    3.19 

 

(1)The discount rate is based on high-quality CPI-linked corporate bonds.

 

e.Amount, timing and uncertainty of future cash flows:

 

   Change in
defined
benefit
obligation		 
   USD in thousands 
December 31, 2024    
     
Sensitivity test for changes in the expected rate of salary increase:    
     
The change as a result of:    
1% salary increase   (209)
1% salary decrease   168 
      
Sensitivity test for changes in the discount rate of the plan assets and liability:     
      
The change as a result of:     
1% increase in discount rate   186 
1% decrease in discount rate   (230)