EMPLOYEE BENEFITS continued Pension Plan

PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2015 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated 176

50. EMPLOYEE BENEFITS continued

Pension Plan continued The composition of plan assets from Pension Fund for the years ended December 31, 2015 and 2014 are as follows:continued December 31, 2014 DPBMS DPBMD DPBMT DPBME Deposit 38 31 11 26 Bonds 28 42 36 34 Direct investment 5 14 21 13 Land and building 15 4 26 7 Shares 8 4 - 1 Government Bonds - 4 4 5 Others 6 1 2 14 Total 100 100 100 100 Labor Law No. 132003 Bank Mandiri has implemented an accounting policy for employment benefits SFAS 24 to recognise provision for employee service entitlements. As of December 31, 2015 and 2014 the Group recognised a provision for employee services entitlements in accordance with Labor Law No. 132003 amounting to Rp2,411,613 including compensation benefits for employees who have resigned which compensation have not yet been paid and excluded from actuarial calculation amounted to Rp8,240 and Rp2,234,193 including compensation benefits for employees who have resigned which compensation have not yet been paid and excluded from actuarial calculationamounted to Rp8,240 based on the estimated post employment benefit in the independent actuarial reports Note 34. Provision for employee service entitlements as of December 31, 2015 and 2014 are estimated using the employees service entitlements calculation for the years ended December 31, 2015 and 2014 as shown in the independent actuarial report of PT Dayamandiri Dharmakonsilindo dated January 5, 2016 for the year ended December 31, 2015 and the independent actuarial reports of PT Milliman Indonesia dated January 17, 2015 for the year ended December 31, 2014. The assumptions used by the actuary for the years ended December 31, 2015 and 2014 are as follows: a. Discount rate is 9.10 per annum 2014: 8.50 per annum. b. Expected rate of annual salary increase is 9.50 per annum 2014: 9.50 per annum. c. Mortality rate table used is Indonesia Mortality Table 2011 or TMI III. d. Turnover rate is 5 for employees’ age of 25 and decreasing linearly up to 0 at age 55. e. Actuarial method is projected unit credit method. f. Normal retirement age between 36 to 56 years according to the grades. g. Disability rate is 10 of TMI III. The amounts recognised in the statement of financial position are determined based on independent actuarial report as follows Bank Mandiri only: December 31, December 31, 2015 2014 Present value of obligations 1,976,724 1,924,202 Unrecognised past service cost - 10,530 Unrecognised actuarial losses - 6,800 Provision for post employment benefits presented in statement of financial position 1,976,724 1,906,872 PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2015 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated 177

50. EMPLOYEE BENEFITS continued

Labor Law No. 132003 continued The movement in present value of obligation over the year is as follows Bank Mandiri only: December 31, December 31, 2015 2014 Beginning balance of present value of obligation 1,924,202 1,597,813 Interest cost 158,580 134,108 Current service cost 260,608 146,083 Benefit paid 69,315 94,869 Impact of changes actuarial adjustment - 45,247 Actuarial gainslosses 297,351 95,820 Ending Balance of Present Value of Obligation 1,976,724 1,924,202 The amounts recognised in the profit or loss based on independent actuarial report are as follows Bank Mandiri only: For the year ended December 31, 2015 2014 Current service cost 260,608 146,083 Interest cost 158,580 134,108 Bank payment for termination benefit 13,683 - Amortisation of unrecognised past service cost - 5,142 Cost of Pension benefits 432,871 285,333 Reconciliations of provision for post employment benefits are as follows: December 31, December 31, 2015 2014 Bank Mandiri Beginning balance of provision for post employment benefits 1,906,872 1,716,408 Expenses during the year 432,871 285,333 Payments of benefits 69,315 94,869 Adjustment 3,152 - Recognition of actuarial gains in other comprehensive income 290,552 - Provision for post employment benefits Bank Mandiri 1,976,724 1,906,872 Subsidiaries Provision for post employment benefits 426,649 319,081 Total provision for post employment benefits 2,403,373 2,225,953 As of December 31, 2015 and 2014, the amount does not include unpaid severance for resigned employees amounting to Rp8,240, which was excluded from actuarial computation.