|WNS (HOLDINGS) LTD filed this Form 6-K on 08/23/2018|
In accordance with Indian, Philippines and Sri Lankan laws, all of our employees in these countries are entitled to receive benefits under the respective government provident fund, a defined contribution plan to which both we and the employee contribute monthly at a pre-determined rate (for India and Sri Lanka, currently 12% of the employees base salary and for the Philippines, 100 Philippine pesos per month for every employee). These contributions are made to the respective government provident fund and we have no further obligation under this fund apart from our monthly contributions. We contributed an aggregate of $8.9 million, $8.4 million and $5.9 million in each of fiscal 2018, 2017 and 2016, respectively, to the government provident fund.
US Savings Plan
Eligible employees in the US participate in a savings plan (the US Savings Plan), pursuant to Section 401(k) of the Code. The US Savings Plan allows our employees to defer a portion of their annual earnings on a pre-tax basis through voluntary contributions there under. The US Savings Plan provides that we can make optional contributions up to the maximum allowable limit under the Code. We contributed an aggregate of $1.3 million, $0.4 million, and $0.3 million in each of fiscal 2018, 2017 and 2016, respectively, to the US Savings Plan.
UK Pension Scheme
Eligible employees in the UK contribute to a defined contribution pension scheme operated in the UK. The assets of the scheme are held separately from ours in an independently administered fund. The pension expense represents contributions payable to the fund by us. We contributed an aggregate of $0.7 million, $0.8 million, and $0.7 million in each of fiscal 2018, 2017 and 2016, respectively, to the UK Pension Scheme.
In accordance with Indian, the Philippines and Sri Lankan laws, we provide for gratuity liability pursuant to a defined benefit retirement plan covering all our employees in India, the Philippines and Sri Lanka. Our gratuity plan provides for a lump sum payment to eligible employees on retirement, death, incapacitation or on termination of employment (provided such employee has worked for at least five years with our company) which is computed on the basis of employees salary and length of service with us (subject to a maximum of approximately $30,689 per employee in India). In India, we provide the gratuity benefit through determined contributions pursuant to a non-participating annuity contract administered and managed by the Life Insurance Corporation of India (LIC) and Aviva Life Insurance Company Private Limited. Under this plan, the obligation to pay gratuity remains with us although LIC and Aviva Life Insurance Company Private Limited administer the plan. We contributed an aggregate of $1.1 million, $1.1 million and $0.9 million in fiscal 2018, 2017 and 2016, respectively, to LIC and Aviva Life Insurance Company Private Limited.
Our Sri Lanka subsidiary, Philippines subsidiary and one Indian subsidiary have unfunded gratuity obligations.