XML 59 R44.htm IDEA: XBRL DOCUMENT

Employee Benefits (Tables)

12 Months Ended

Mar. 31, 2022

Disclosure Of Defined Benefit Plans [Abstract]

Summary of Defined Benefit Plans Amount Recognized in Group's Financial Statements

The following tables set out the funded status majorly of the Indian gratuity plans and the amounts recognized in the Group’s financial statements as of March 31, 2022, and March 31, 2021:

	(Dollars in millions)
	As of
	March 31, 2022			March 31, 2021
Change in benefit obligations
Benefit obligations at the beginning	222			185
Service cost	29			28
Interest expense	12			12
Remeasurements - Actuarial losses / (gains)		11			4
Transfer of obligation		—			—
Benefits paid		(39	)		(14	)
Translation differences		(8	)		7
Benefit obligations at the end	227			222
Change in plan assets
Fair value of plan assets at the beginning	220			201
Interest Income	13			13
Remeasurements – Returns on plan assets excluding amounts included in interest income	3			2
Contributions	36			10
Benefits paid		(38	)		(13	)
Translation differences		(8	)		7
Fair value of plan assets at the end	226			220
Funded status - Prepaid defined benefit plan asset / (Accrued defined benefit plan liability)		(1	)		(2	)

The following tables set out the funded status of the defined benefit provident fund plan of Infosys Limited and the amounts recognized in the Group's financial statements as at March 31, 2022, and March 31, 2021:

				(Dollars in millions)
	As at
	March 31, 2022				March 31, 2021
Change in benefit obligations
Benefit obligations at the beginning		1,133				973
Service cost		88				57
Employee contribution		155				110
Interest expense		69				82
Actuarial (gains) / loss		16				(4	)
Benefits paid		(191	)			(121	)
Translation differences		(42	)			36
Benefit obligations at the end		1,228				1,133
Change in plan assets
Fair value of plan assets at the beginning		1,113				940
Interest income		68				80
Remeasurements- Return on plan assets excluding amounts included in interest income		2				17
Contributions (employer and employee)		244				162
Benefits paid		(191	)			(121	)
Translation differences		(41	)			35
Fair value of plan assets at the end		1,195				1,113
Accrued defined benefit plan liability		(33	)			(20	)

Summary of Defined Benefit Plan

Amount for fiscal 2022, 2021 and 2020 recognized in net profit in the statement of comprehensive income comprises the following components:

	(Dollars in millions)
	Year ended March 31,
	2022			2021			2020
Service cost		29			28			25
Net interest on the net defined benefit liability / asset		(1	)		(1	)		(1	)
Net gratuity cost		28			27			24

Amount for fiscal 2022, 2021 and 2020 recognized in statement of other comprehensive income:

	(Dollars in millions)
	Year ended March 31,
	2022			2021			2020
Re-measurements of the net defined benefit liability / asset
Actuarial (gains) / losses		11			4			(11	)
(Return) / loss on plan assets excluding amounts included in the net interest on the net defined benefit liability / asset		(3	)		(2	)		(2	)
Total		8			2			(13	)

	(Dollars in millions)
	Year ended March 31,
	2022			2021		2020
(Gain) / loss from change in demographic assumptions		—			—		—
(Gain) / loss from change in financial assumptions		(6	)		2		(8	)
(Gain) / loss from change in experience adjustments		17			2		(3	)
		11			4		(11	)

The gratuity cost recognized in the statement of comprehensive income apportioned between cost of sales, selling and marketing expenses and administrative expenses on the basis of direct employee cost is as follows:

	(Dollars in millions)
	Year ended March 31,
	2022		2021		2020
Cost of sales		25		24		21
Selling and marketing expenses		2		2		2
Administrative expenses		1		1		1
		28		27		24

Superannuation 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,
	2022		2021		2020
Cost of sales		44		31		30
Selling and marketing expenses		3		3		3
Administrative expenses		2		1		1
		49		35		34

Amount for fiscal 2022, 2021 and 2020 recognized in net profit in the statement of comprehensive income comprises the following components:

	(Dollars in millions)
	Year ended March 31,
	2022		2021		2020
Service cost		88		57		57
Net interest on the net defined benefit liability / asset		1		2		—
Net provident fund cost		89		59		57

Amount for fiscal 2022, 2021 and 2020 recognized in the consolidated statement of other comprehensive income:

				(Dollars in millions)
	Year ended March 31,
	2022				2021			2020
Remeasurements of the net defined benefit liability/ (asset)
Actuarial (gains) / losses		16				(4	)		30
(Return) / loss on plan assets excluding amounts included in the net interest on the net defined benefit liability/(asset)		(2	)			(17	)		5
		14				(21	)		35

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,
	2022		2021		2020
Cost of sales	106		80		80
Selling and marketing expenses	8		7		7
Administrative expenses	4		3		3
		118		90	90

Employee benefit costs include:

(Dollars in millions)
	Year ended March 31,
	2022		2021		2020
Salaries and bonus ⁽¹⁾		8,383		7,322		7,020
Defined contribution plans		64		48		48
Defined benefit plans		138		123		100
		8,585		7,493		7,168

⁽¹⁾	Includes stock compensation expense of $56 million, $45 million and $34 million for fiscal 2022, 2021 and 2020, respectively. (Refer to Note 2.17)

The employee benefit cost is recognized in the following line items in the consolidated statement of comprehensive income:

(Dollars in millions)
	Year ended March 31,
	2022		2021		2020
Cost of sales		7,714		6,671		6,406
Selling and marketing expenses		572		548		510
Administrative expenses		299		274		252
		8,585		7,493		7,168

Summary of Weighted-Average Assumptions

The weighted-average assumptions used to determine benefit obligations as of March 31, 2022 and March 31, 2021 are set out below:

	As of
	March 31, 2022			March 31, 2021
Discount rate		6.5	%		6.1	%
Weighted average rate of increase in compensation levels		6.0	%		6.0	%
Weighted average duration of defined benefit obligation	5.9 years			5.9 years

The weighted-average assumptions used to determine net periodic benefit cost for fiscal 2022, 2021 and 2020 are set out below:

	Year ended March 31,
	2022			2021			2020
Discount rate for the year		6.1	%		6.2	%		7.1	%
Weighted average rate of increase in compensation levels		6.0	%		6.0	%		8.0	%

Discount rate		In India, the market for high quality corporate bonds 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.
Weighted average rate of increase in compensation levels		The average rate of increase in compensation levels is determined by the Company, considering factors such as, the Company’s past compensation revision trends and management’s estimate of future salary increases.
Attrition rate		Attrition rate considered is the management’s estimate based on the past long-term trend of employee turnover in the Company.

Assumptions used in determining the present value obligation of the interest rate guarantee under the Deterministic Approach:

	As of
	March 31, 2022			March 31, 2021
Government of India (GOI) bond yield ⁽¹⁾		6.50	%		6.10	%
Expected rate of return on plan assets		7.70	%		8.00	%
Remaining term to maturity of portfolio	6 years			6 years
Expected guaranteed interest rate		8.10	%		8.50	%

⁽¹⁾

^{In India, the market for high quality corporate bonds 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.}

Summary of Sensitivity of Significant Assumptions Used for Valuation of Defined Benefit Obligation

Sensitivity of significant assumptions used for valuation of defined benefit obligation:

		(Dollars in millions)
Impact from one percentage point increase / decrease in		As at March 31, 2022
Discount rate		11
Weighted average rate of increase in compensation levels		10

Summary of Maturity Profile of Defined Benefit Obligation

Maturity profile of defined benefit obligation:

(Dollars in millions)
Within 1 year		35
1 - 2 year		35
2 - 3 year		37
3 - 4 year		38
4 - 5 year		43
5 - 10 years		224

Summary of Various Categories of Plan Assets

The breakup of the plan assets into various categories as at March 31, 2022, and March 31, 2021, are as follows:

	As of
	March 31, 2022			March 31, 2021
Central and State Government bonds		57	%		54	%
Public sector undertakings and Private sector bonds		37	%		40	%
Others		6	%		6	%

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