Pension and Other Employee Benefits (Tables)
|
12 Months Ended |
Dec. 31, 2025 |
|---|
| Defined Benefit Pension Plans [Member] |
|
| Disclosure Of Defined Benefit Plans [Line Items] |
|
| Summary of Changes in Present Value of Defined Benefit Obligations, Fair Value of Plan Assets and Components of Net Periodic Benefit Costs |
PLDT and certain of its subsidiaries’ actuarial valuation is performed every year-end. There is no significant change in the fair value of plan assets for the year ended December 31, 2025. Based on the latest actuarial valuation, the actual present value of accrued (prepaid) benefit costs as at December 31, 2025 and 2024, and net periodic benefit costs and average assumptions used in developing the valuation as at and for the years ended December 31, 2025, 2024 and 2023 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|
|
(in million pesos) |
|
Changes in the present value of defined benefit obligations: |
|
|
|
|
|
|
|
|
|
Present value of defined benefit obligations at beginning of the year |
|
|
17,376 |
|
|
|
17,964 |
|
|
|
15,883 |
|
Service costs |
|
|
1,101 |
|
|
|
1,042 |
|
|
|
1,016 |
|
Interest costs on benefit obligation |
|
|
1,059 |
|
|
|
1,043 |
|
|
|
1,065 |
|
Actuarial losses on obligations – experience |
|
|
(35 |
) |
|
|
437 |
|
|
|
154 |
|
Actuarial gains on obligations – economic assumptions |
|
|
(122 |
) |
|
|
(496 |
) |
|
|
2,303 |
|
Actual benefits paid/settlements |
|
|
(1,686 |
) |
|
|
(2,744 |
) |
|
|
(2,848 |
) |
Curtailment and others |
|
|
93 |
|
|
|
130 |
|
|
|
391 |
|
Present value of defined benefit obligations at end of the year |
|
|
17,786 |
|
|
|
17,376 |
|
|
|
17,964 |
|
Changes in fair value of plan assets: |
|
|
|
|
|
|
|
|
|
Fair value of plan assets at beginning of the period |
|
|
13,985 |
|
|
|
14,522 |
|
|
|
16,291 |
|
Actual contributions |
|
|
1,533 |
|
|
|
3,201 |
|
|
|
4,507 |
|
Interest income on plan assets |
|
|
984 |
|
|
|
1,019 |
|
|
|
1,138 |
|
Actual benefits paid/settlements |
|
|
(1,599 |
) |
|
|
(2,820 |
) |
|
|
(2,510 |
) |
Return on plan assets (excluding amount included in net interest) |
|
|
(760 |
) |
|
|
(1,937 |
) |
|
|
(4,904 |
) |
Fair value of plan assets at end of the year |
|
|
14,143 |
|
|
|
13,985 |
|
|
|
14,522 |
|
Unfunded status – net |
|
|
(3,643 |
) |
|
|
(3,391 |
) |
|
|
(3,442 |
) |
Accrued benefit costs |
|
|
3,810 |
|
|
|
3,548 |
|
|
|
3,541 |
|
Prepaid benefit costs |
|
|
167 |
|
|
|
157 |
|
|
|
99 |
|
|
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
Components of net periodic benefit costs: |
|
|
|
|
|
|
|
|
|
Service costs |
|
|
1,101 |
|
|
|
1,042 |
|
|
|
1,016 |
|
Interest costs - net |
|
|
75 |
|
|
|
24 |
|
|
|
(73 |
) |
Curtailment and others |
|
|
64 |
|
|
|
130 |
|
|
|
272 |
|
Net periodic benefit costs |
|
|
1,240 |
|
|
|
1,196 |
|
|
|
1,215 |
|
|
| Summary of Expected Future Settlements |
The following table sets forth the expected future settlements by the Plan of maturing defined benefit obligation as at December 31, 2025:
|
|
|
|
|
|
|
(in million pesos) |
|
2026 |
|
|
250 |
|
2027 |
|
|
308 |
|
2028 |
|
|
711 |
|
2029 |
|
|
644 |
|
2030 |
|
|
1,331 |
|
2031 and onwards |
|
|
12,069 |
|
|
| Summary of Weighted Average Assumptions Used to Determine Pension Benefits |
The weighted average assumptions used to determine pension benefits for the years ended December 31, 2025, 2024 and 2023 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|
|
(in percentage) |
|
Rate of increase in compensation |
|
|
5.7 |
|
|
|
5.7 |
|
|
|
5.7 |
|
Discount rate |
|
|
6.5 |
|
|
|
6.2 |
|
|
|
6.0 |
|
|
| Summary of Sensitivity Analysis on Defined Benefit Obligation |
The sensitivity analysis below has been determined based on reasonably possible changes of each significant assumption on the defined benefit obligation as at December 31, 2025 and 2024, assuming if all other assumptions were held constant:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
|
2024 |
|
|
|
Increase
(Decrease) |
|
|
Effect |
|
|
Increase
(Decrease) |
|
|
Effect |
|
|
|
(in percentage) |
|
|
(in million pesos) |
|
|
(in percentage) |
|
|
(in million pesos) |
|
Discount rate |
|
1 |
|
|
|
15,525 |
|
|
1 |
|
|
|
15,251 |
|
|
|
|
(1 |
) |
|
|
(19,744 |
) |
|
|
(1 |
) |
|
|
(19,348 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Future salary increases |
|
|
1 |
|
|
|
19,730 |
|
|
|
1 |
|
|
|
19,334 |
|
|
|
|
(1 |
) |
|
|
(15,501 |
) |
|
|
(1 |
) |
|
|
(15,229 |
) |
|
| Summary of Plan Assets |
The following table sets forth the fair values, which are equal to the carrying values, of PLDT’s plan assets recognized as at December 31, 2025 and 2024:
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
|
2024 |
|
|
|
(in million pesos) |
|
Noncurrent Financial Assets |
|
|
|
|
|
|
Investments in: |
|
|
|
|
|
|
Unquoted equity investments |
|
|
10,502 |
|
|
|
10,774 |
|
Shares of stock |
|
|
2,288 |
|
|
|
1,983 |
|
Corporate bonds |
|
|
317 |
|
|
|
303 |
|
Mutual funds |
|
|
306 |
|
|
|
252 |
|
Government securities |
|
|
4 |
|
|
|
4 |
|
Total noncurrent financial assets |
|
|
13,417 |
|
|
|
13,316 |
|
Current Financial Assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
|
459 |
|
|
|
409 |
|
Receivables |
|
|
100 |
|
|
|
103 |
|
Total current financial assets |
|
|
559 |
|
|
|
512 |
|
Total PLDT’s Plan Assets |
|
|
13,976 |
|
|
|
13,828 |
|
Subsidiaries Plan Assets |
|
|
167 |
|
|
|
157 |
|
Total Plan Assets of Defined Benefit Pension Plans |
|
|
14,143 |
|
|
|
13,985 |
|
|
| Defined Benefit Pension Plans [Member] | Shares of Stocks [Member] |
|
| Disclosure Of Defined Benefit Plans [Line Items] |
|
| Summary of Plan Assets |
As at December 31, 2025 and 2024, this account consists of:
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
|
2024 |
|
|
|
(in million pesos) |
|
Common shares |
|
|
|
|
|
|
PSE |
|
|
1,388 |
|
|
|
1,093 |
|
PLDT |
|
|
34 |
|
|
|
34 |
|
Others |
|
|
506 |
|
|
|
496 |
|
Preferred shares |
|
|
360 |
|
|
|
360 |
|
|
|
|
2,288 |
|
|
|
1,983 |
|
|
| Defined Benefit Pension Plans [Member] | Unlisted Equity Investments [Member] |
|
| Disclosure Of Defined Benefit Plans [Line Items] |
|
| Summary of Plan Assets |
Unquoted Equity Investments As at December 31, 2025 and 2024, this account consists of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
|
|
(Percentage of Ownership) |
|
|
(in million pesos) |
|
MediaQuest |
|
|
100 |
|
|
|
100 |
|
|
|
6,970 |
|
|
|
7,304 |
|
Tahanan Mutual Building and Loan Association, Inc.,
or TMBLA, (net of subscriptions payable of Php32 million) |
|
|
100 |
|
|
|
100 |
|
|
|
773 |
|
|
|
722 |
|
BTFHI |
|
|
100 |
|
|
|
100 |
|
|
|
2,759 |
|
|
|
2,748 |
|
|
|
|
|
|
|
|
|
|
10,502 |
|
|
|
10,774 |
|
|
| Defined Benefit Pension Plans [Member] | Investment Property [Member] |
|
| Disclosure Of Defined Benefit Plans [Line Items] |
|
| Summary of Allocation of Fair Value of Plan Assets |
The allocation of the fair value of the assets for the PLDT pension plan as at December 31, 2025 and 2024 are as follows:
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
|
2024 |
|
|
|
(in percentage) |
|
Investments in listed and unlisted equity securities |
|
|
92 |
|
|
|
92 |
|
Temporary cash investments |
|
|
3 |
|
|
|
3 |
|
Debt and fixed income securities |
|
|
2 |
|
|
|
2 |
|
Mutual funds |
|
|
2 |
|
|
|
2 |
|
Receivables and other assets |
|
|
1 |
|
|
|
1 |
|
|
|
|
100 |
|
|
|
100 |
|
|
| Defined Benefit Pension Plans [Member] | MediaQuest PDRs [Member] |
|
| Disclosure Of Defined Benefit Plans [Line Items] |
|
| Summary of Plan Assets |
ePLDT’s Board of Directors approved on various dates in 2012 to 2015, the investment in the PDRs of MediaQuest as follows:
|
|
|
|
|
|
|
|
|
ePLDT's economic interest |
|
Amount |
|
|
|
|
|
(in million pesos) |
|
Satventures PDRs |
|
40% of Satventures |
|
|
3,600 |
|
Cignal TV PDRs |
|
40% of Cignal TV |
|
|
6,000 |
|
Hastings PDRs |
|
70% of Hastings |
|
|
3,250 |
|
|
|
|
|
|
|
|
| Defined Contribution Plans [Member] |
|
| Disclosure Of Defined Benefit Plans [Line Items] |
|
| Summary of Changes in Present Value of Defined Benefit Obligations, Fair Value of Plan Assets and Components of Net Periodic Benefit Costs |
Smart’s and certain subsidiaries’ actuarial valuation is performed every year-end. There is no significant change in the fair value of plan assets from December 31, 2024 to December 31, 2025. Based on the latest actuarial valuation, the actual present value of prepaid benefit costs, net periodic benefit costs and average assumptions used in developing the valuation as at and for the years ended December 31, 2025, 2024 and 2023 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|
|
(in million pesos) |
|
Changes in the present value of defined contribution obligations: |
|
|
|
|
|
|
|
|
|
Present value of defined contribution obligations at beginning of the period |
|
|
3,235 |
|
|
|
2,800 |
|
|
|
2,777 |
|
Contribution costs |
|
|
262 |
|
|
|
294 |
|
|
|
262 |
|
Interest costs on contribution obligation |
|
|
219 |
|
|
|
174 |
|
|
|
210 |
|
Actuarial gains on obligations – economic assumptions |
|
|
1 |
|
|
|
(1 |
) |
|
|
8 |
|
Actuarial losses on obligations – experience |
|
|
(10 |
) |
|
|
254 |
|
|
|
(98 |
) |
Actual benefits paid/settlements |
|
|
(380 |
) |
|
|
(89 |
) |
|
|
(344 |
) |
Curtailment and others |
|
|
275 |
|
|
|
(197 |
) |
|
|
(15 |
) |
Present value of defined contribution obligations at end of the period |
|
|
3,602 |
|
|
|
3,235 |
|
|
|
2,800 |
|
Changes in fair value of plan assets: |
|
|
|
|
|
|
|
|
|
Fair value of plan assets at beginning of the period |
|
|
4,053 |
|
|
|
3,618 |
|
|
|
3,485 |
|
Actual contributions |
|
|
246 |
|
|
|
243 |
|
|
|
248 |
|
Interest income on plan assets |
|
|
260 |
|
|
|
223 |
|
|
|
261 |
|
Return on plan assets (excluding amount included in net interest) |
|
|
42 |
|
|
|
56 |
|
|
|
(4 |
) |
Actual contribution paid/settlements |
|
|
(356 |
) |
|
|
(87 |
) |
|
|
(372 |
) |
Fair value of plan assets at end of the period |
|
|
4,245 |
|
|
|
4,053 |
|
|
|
3,618 |
|
Funded status – net |
|
|
643 |
|
|
|
818 |
|
|
|
818 |
|
Prepaid contribution costs |
|
|
643 |
|
|
|
818 |
|
|
|
818 |
|
|
|
|
|
|
|
|
|
|
|
Components of net periodic contribution costs: |
|
|
|
|
|
|
|
|
|
Service costs |
|
|
262 |
|
|
|
294 |
|
|
|
262 |
|
Interest costs - net |
|
|
(40 |
) |
|
|
(49 |
) |
|
|
(51 |
) |
Others |
|
|
(28 |
) |
|
|
— |
|
|
|
— |
|
Net periodic contribution costs |
|
|
194 |
|
|
|
245 |
|
|
|
211 |
|
|
| Summary of Expected Future Settlements |
The following table sets forth the expected future settlements by the Plan of maturing defined contribution obligation as at December 31, 2025:
|
|
|
|
|
|
|
(in million pesos) |
|
2026 |
|
|
121 |
|
2027 |
|
|
153 |
|
2028 |
|
|
245 |
|
2029 |
|
|
271 |
|
2030 |
|
|
337 |
|
2031 and onwards |
|
|
2,524 |
|
|
| Summary of Weighted Average Assumptions Used to Determine Pension Benefits |
The weighted average assumptions used to determine pension benefits for the years ended December 31, 2025, 2024 and 2023 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|
|
(Unaudited) |
|
|
(Audited) |
|
|
|
(in percentage) |
|
Rate of increase in compensation |
|
|
5.0 |
|
|
|
5.0 |
|
|
|
5.0 |
|
Discount rate |
|
|
6.0 |
|
|
|
6.3 |
|
|
|
7.3 |
|
|
| Summary of Sensitivity Analysis on Defined Benefit Obligation |
The sensitivity analysis below has been determined based on reasonably possible changes of each significant assumption on the defined contribution obligation as at December 31, 2025 and 2024, assuming if all other assumptions were held constant:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
|
2024 |
|
|
|
Increase
(Decrease) |
|
|
Effect |
|
|
Increase
(Decrease) |
|
|
Effect |
|
|
|
(in percentage) |
|
|
(in million pesos) |
|
|
(in percentage) |
|
|
(in million pesos) |
|
Discount rate |
|
|
1 |
|
|
|
3,499 |
|
|
|
1 |
|
|
|
3,406 |
|
|
|
|
(1 |
) |
|
|
(3,508 |
) |
|
|
(1 |
) |
|
|
(3,417 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Future salary increases |
|
|
(1 |
) |
|
|
(3,508 |
) |
|
|
(1 |
) |
|
|
(3,417 |
) |
|
|
|
1 |
|
|
|
3,499 |
|
|
|
1 |
|
|
|
3,406 |
|
|
| Summary of Plan Assets |
The following table sets forth the fair values, which are equal to the carrying values, of Smart’s plan assets recognized as at December 31, 2025 and 2024:
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
|
2024 |
|
|
|
(in million pesos) |
|
Noncurrent Financial Assets |
|
|
|
|
|
|
Investments in: |
|
|
|
|
|
|
Domestic fixed income |
|
|
2,479 |
|
|
|
2,655 |
|
International equities |
|
|
1,042 |
|
|
|
854 |
|
Philippine foreign currency bonds |
|
|
892 |
|
|
|
753 |
|
Domestic equities |
|
|
813 |
|
|
|
738 |
|
International fixed income |
|
|
306 |
|
|
|
295 |
|
Total noncurrent financial assets |
|
|
5,532 |
|
|
|
5,295 |
|
Current Financial Assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
|
311 |
|
|
|
284 |
|
Total current financial assets |
|
|
311 |
|
|
|
284 |
|
Total plan assets |
|
|
5,843 |
|
|
|
5,579 |
|
Less: Employee’s share, forfeitures and mandatory reserve account |
|
|
1,598 |
|
|
|
1,526 |
|
Total Plan Assets of Defined Contribution Plans |
|
|
4,245 |
|
|
|
4,053 |
|
|
| Summary of Allocation of Fair Value of Plan Assets |
The allocation of the fair value of Smart and certain subsidiaries' pension plan assets as at December 31, 2025 and 2024 are as follows:
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
|
2024 |
|
|
|
(in percentage) |
|
Investments in debt and fixed income securities and others |
|
|
68 |
|
|
|
71 |
|
Investments in listed and unlisted equity securities |
|
|
32 |
|
|
|
29 |
|
|
|
100 |
|
|
100 |
|
|