21. Employee benefits
The amount of actuarial provisions recognised in the financial statements results from the valuation prepared by an independent actuary.
As at the reporting date, the actuary adopted the following assumptions to calculate the amounts of the provisions:
|
As at 31 December 2023 |
As at 31 December 2022 |
|
| Forecast inflation rate (%) | 6.6 in 2024, 4.2 in 2025, 3.5 in 2026, 3.0 in 2027, 2.7 in 2028, 2.50 in 2029 and subsequent years |
13.70 in 2023, 5.05 in 2024, 3.00 in 2025, 2.50 in 2026 and subsequent years |
| Discount rate (%) | 5.1 | 7.0 |
| Average assumed annual growth of bases (%) | 2.5-15.4 | 3.8 – 5.0 |
| Employee turnover rate (%) | 0.1 – 12.7 | 0.0 – 8.2 |
| Forecast increase rate for the value of medical services (%) | 0.0 – 73.3 | 0.0 – 14.5 |
| Forecast increase rate for the value of contribution to Company Social Benefits Fund (%) | 25.72 in 2024 6.0 in subsequent yearsh |
0.0 – 10 |
- The likelihood of employee resignations was assessed on the basis of historic data concerning the Group’s employment turnover.
- Mortality and the likelihood of living up to a certain age are adopted in accordance with the Life Expectancy Table published by the Chief Statistical Office, assuming that the population of the Group employees corresponds to the average for Poland with respect to mortality.
- A statutory mode of retirement for employees was adopted according to the detailed rules set out in the Act amending the Act on pensions from the Social Insurance Fund and certain other acts of 16 November 2016.
- The discount rate of 5.1% was adopted for discounting future payments of benefits as at the reporting date (31 December 2022: 7.0%) i.e. at the level of profitability of securities issued by the State Treasury and listed on the Polish capital market.
Current book value of provisions for post-employment benefits and jubilee awards
| As at 31 December 2023 | As at 31 December 2022 | |||
| Long-term | Short-term | Long-term | Short-term | |
| Retirement severance and death benefits | 566 | 126 | 460 | 103 |
| Coal allowances in kind | 82 | 9 | 72 | 9 |
| Energy tariff | 1,200 | 59 | 678 | 47 |
| Company Social Benefits Fund | 537 | 29 | 254 | 19 |
| Health care | 79 | 7 | 43 | 4 |
| TOTAL POST-EMPLOYMENT BENEFITS | 2,464 | 230 | 1,507 | 182 |
| Jubilee awards | 859 | 142 | 681 | 116 |
| Incentive bonus | 6 | – | – | – |
| TOTAL ACTUARIAL PROVISIONS | 3,329 | 372 | 2,188 | 298 |
Changes in provisions for employee benefits
| Retirement severance and death benefits | Coal allowances in kind | Energy tariff | CSBF | Health care | Jubilee awards | Incentive bonus | Total | |
| AS AT 1 JANUARY 2023 | 563 | 81 | 725 | 273 | 47 | 797 | – | 2.486 |
| Actuarial gains and losses | 14 | 3 | 283 | 151 | 31 | 54 | – | 536 |
| Discount rate adjustment | 65 | 10 | 211 | 93 | 7 | 84 | 1 | 471 |
| Current employment costs | 31 | 1 | 25 | 11 | 1 | 57 | – | 126 |
| Past employment costs | 7 | – | 4 | 10 | – | 26 | 6 | 53 |
| Interest costs | 41 | 6 | 51 | 21 | 3 | 60 | – | 182 |
| Benefits paid / Provisions used | (72) | (9) | (42) | (23) | (4) | (148) | (1) | (299) |
| Change in composition of CG | 43 | – | – | 27 | – | 71 | – | 141 |
| Other changes | – | (1) | 2 | 3 | 1 | – | 5 | |
| AS AT 31 DECEMBER 2023 | 692 | 91 | 1.259 | 566 | 86 | 1.001 | 6 | 3.701 |
| Change charged to operating costs | (38) | (1) | (29) | (21) | (1) | (221) | (7) | (318) |
| Change recognised in finance income/(expenses) | (41) | (6) | (51) | (21) | (3) | (60) | – | (182) |
| Change charged to other comprehensive income | (79) | (13) | (494) | (244) | (38) | – | – | (868) |
| Odprawy emerytalno-rentowe i pośmiertne | Deputat węglowy | Taryfa energetyczna | ZFŚS | Opieka medyczna | Nagrody jubileuszowe | Razem | |
| AS AT 1 JANUARY 2022 | 563 | 109 | 781 | 374 | 58 | 772 | 2.657 |
| Actuarial gains and losses | 137 | (4) | 225 | 11 | 4 | 232 | 605 |
| Discount rate adjustment | (123) | (20) | (287) | (109) | (13) | (159) | (711) |
| Current employment costs | 22 | 1 | 11 | 4 | 1 | 41 | 80 |
| Past employment costs | (1) | – | – | – | – | – | (1) |
| Interest costs | 20 | 4 | 28 | 13 | 2 | 28 | 95 |
| Benefits paid / Provisions used | (54) | (9) | (33) | (19) | (3) | (116) | (234) |
| Change in composition of CG | (1) | – | – | (1) | – | (1) | (3) |
| Other changes | – | – | – | – | (2) | – | (2) |
| AS AT 31 DECEMBER 2022 | 563 | 81 | 725 | 273 | 47 | 797 | 2.486 |
| Change charged to operating costs | (21) | (1) | (11) | (4) | (1) | (114) | (152) |
| Change recognised in finance income/(expenses) | (20) | (4) | (28) | (13) | (2) | (28) | (95) |
| Change charged to other comprehensive income | (14) | 24 | 62 | 98 | 9 | – | 179 |
Analysis of sensitivity of the actuarial provisions as at 31 December 2023 to changes in
the key assumptions
| Value in statement | Financial discount rate | Planned increases in bases | |||
| -1 p.p. | + 1 p.p. | -1 p.p. | + 1 p.p. | ||
| Retirement severance and death benefits | 692 | 17 | (62) | (63) | 17 |
| Coal allowances in kind | 91 | 7 | (5) | (6) | 7 |
| Energy tariff | 1,259 | 148 | (124) | (126) | 148 |
| Company Social Benefits Fund | 566 | 58 | (60) | (59) | 55 |
| Health care | 86 | 6 | (5) | (9) | 3 |
| Jubilee awards | 1,001 | 17 | (88) | (89) | 17 |
| Incentive bonus | 6 | – | (1) | (1) | – |
| TOTAL | 3,701 | 253 | (345) | (353) | 247 |