Company: INFY
Filing Date: 2025-07-01
Form Type: 20-F
Source: 0000950170-25-091925
Chunk: 264

Company: Infosys Ltd
Filing Date: 2025-07-01
Form: 20-F
Item: Item 18
Chunk 264
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 being not developed, the yield of government bonds is considered as the discount rate. The tenure has been considered taking into account the past long-term trend of employees’ average remaining service life which reflects the average estimated term of the post-employment benefit obligations.

The breakup of the plan assets into various categories as of March 31, 2025, and March 31, 2024 are as follows:

                                                                                             As of    
                                                         March 31, 2025             March 31, 2024    
Central and State Government bonds                                   60   %                     60   %
Public sector undertakings and Private sector bonds                  28   %                     30   %
Others                                                               12   %                     10   %

The asset allocation for plan assets is determined based on investment criteria prescribed under the relevant regulations.

The actuarial valuation of provident fund liability exposes the Group to interest rate risk. The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.

As at March 31, 2025 the defined benefit obligation would be affected by approximately $15 million on account of a 0.25% increase / decrease in the expected rate of return on plan assets.

The Group contributed $156 million, $152 million and $148 million to the provident fund during fiscal 2025, 2024 and 2023, respectively. The same has been recognized in the net profit in the consolidated statement of comprehensive income under the head employee benefit expense.
Provident fund contributions have been apportioned between cost of sales, selling and marketing expenses and administrative expenses on the basis of direct employee cost as follows:

(Dollars in millions)                                                               
                                                                Year ended March 31,
                                        2025                2024                2023
Cost of sales                            141                 137                 134
Selling and marketing expenses            10                  10                   9
Administrative expenses                    5                   5                   5
                                         156                 152                 148
The provident plans are applicable only to employees drawing a salary in Indian rupees.

2.14.4 Employee benefit costs include:

(Dollars in millions)                                                                     
                                 Year ended March 31,                                     
                             2025                   2024                   2023           
Salaries and bonus (1)                 9,903                  9,729                  9,481
Defined contribution plans                                                              78
Defined