Annual
report 2020
Annual
report 2020
Certain employees of the Group are entitled to long-term employee benefits in accordance with the Group’s remuneration policy (see Note 33.21). These benefits are not funded. Changes in the present and carrying value of obligations related to long-term employee benefits for the 12 months ended 31 December 2020 and 2019 are detailed below: The valuation of obligations as at 31 December 2020 and 2019 was performed using the following assumptions: A change of the discount rate by 0.5 p.p. would increase or decrease the present/carrying value of obligations related to long-term employee benefits by PLN 3 million as at 31 December 2020. Previous topic Next topic
(in PLN millions)
12 months ended 31 December 2020
Jubilee awards
Retirement bonuses
Total
Present/carrying value of obligation at the beginning of the period
95
50
145
Current service cost(1)
6
2
8
Past service cost(1)(4)
(64)
–
(64)
Interest cost(2)
1
1
2
Benefits paid
(14)
(1)
(15)
Actuarial losses for the period
(5)(1)
3(3)
(2)
Present/carrying value of obligation at the end of the period
19
55
74
Weighted average duration (in years)
1
13
10
(1) Recognised under labour expense in the consolidated income statement.
(2) Recognised under discounting expense in the consolidated income statement.
(3) Recognised under actuarial losses on post-employment benefits in the consolidated statement of comprehensive income.
(4) Impact of the amendment to the Collective Labour Agreement signed in 2020 and described above.
(in PLN millions)
12 months ended 31 December 2019
Jubilee awards
Retirement bonuses
Total
Present/carrying value of obligation at the beginning of the period
95
49
144
Current service cost(1)
8
2
10
Past service cost(1)(4)
(7)
(10)
(17)
Interest cost(2)
2
2
4
Benefits paid
(15)
(1)
(16)
Actuarial losses for the period
12(1)
8(3)
20
Present/carrying value of obligation at the end of the period
95
50
145
Weighted average duration (in years)
7
13
9
(1) Recognised under labour expense in the consolidated income statement.
(2) Recognised under discounting expense in the consolidated income statement.
(3) Recognised under actuarial losses on post-employment benefits in the consolidated statement of comprehensive income.
(4) Includes a PLN 24 million impact of curtailment resulting from the Social Agreement concluded on 12 December 2019 (see Note 15).
At 31 December
2020At 31 December
2019
Discount rate
1.6%
1.9%
Long-term wage increase rate
2.5%
2.5%
17. Employee benefits
17.2. Cash-settled share-based payment plan