Change in employee benefits obligations
| NOTE | Jubilee bonuses provision | Post-employment benefits | Total | ||||
|---|---|---|---|---|---|---|---|
| 31/12/2019 | 31/12/2018 | 31/12/2019 | 31/12/2018 | 31/12/2019 | 31/12/2018 | ||
| At the beginning of the period | 144 | 145 | 145 | 132 | 289 | 277 | |
| Current service costs | 6 | 14 | 8 | 6 | 14 | 20 | |
| Interest expenses | 4 | 4 | 4 | 4 | 8 | 8 | |
| Actuarial gains and losses arising from changes in assumptions: | 16 | 9 | 21 | 5 | 37 | 14 | |
| demographic | 3 | – | 1 | 1 | 4 | 1 | |
| financial | 8 | 7 | 20 | 4 | 28 | 11 | |
| other | 5 | 2 | – | – | 5 | 2 | |
| Past employment costs | (12) | (13) | (2) | 3 | (14) | (10) | |
| Payments under programme | (21) | (14) | (8) | (7) | (29) | (21) | |
| Other | – | (1) | – | 2 | – | 1 | |
| 12.9 | 137 | 144 | 168 | 145 | 305 | 289 | |
The carrying amount of employee benefits liabilities is equal to their present value as at 31 December 2019 and 31 December 2018.
Employee benefits liabilities divided into active and retired employees
| Active employees | Retired employees | Total | ||||
|---|---|---|---|---|---|---|
| 31/12/2019 | 31/12/2018 | 31/12/2019 | 31/12/2018 | 31/12/2019 | 31/12/2018 | |
| Poland | 202 | 196 | 64 | 56 | 266 | 252 |
| Czech Republic | 22 | 19 | – | – | 22 | 19 |
| Lithuania, Latvia, Estonia | 17 | 18 | – | – | 17 | 18 |
| 241 | 233 | 64 | 56 | 305 | 289 | |
| Jubilee bonuses provision | Post-employment benefits | Total | ||||
|---|---|---|---|---|---|---|
| 31/12/2019 | 31/12/2018 | 31/12/2019 | 31/12/2018 | 31/12/2019 | 31/12/2018 | |
| Employee benefits liabilities divided into geographical structure | ||||||
| Poland | 131 | 139 | 135 | 114 | 266 | 253 |
| Czech Republic | 6 | 5 | 17 | 14 | 23 | 19 |
| Lithuania, Latvia, Estonia | – | – | 16 | 17 | 16 | 17 |
| 137 | 144 | 168 | 145 | 305 | 289 | |
| Maturity of employee benefits analysis | ||||||
| up to 1 year | 21 | 32 | 28 | 24 | 49 | 56 |
| above 1 to 5 years | 52 | 50 | 28 | 26 | 80 | 76 |
| above 5 years | 64 | 62 | 112 | 95 | 176 | 157 |
| 137 | 144 | 168 | 145 | 305 | 289 | |
The weighted average duration of liabilities for post-employment benefits in 2019 and in 2018 amounted to: Poland 9 and 8 years, the Czech Republic 9 and 9 and Lithuania, Latvia, Estonia 9 and 14 years, respectively.
In 2019 the amount of provision for employee benefits changed as the result of update of assumptions, mainly in relation to discount rate, projected inflation and expected remuneration increase ratio. Should the 2018 assumptions be used, the provision for the employee benefits would be lower by PLN (30) million.
Sensitivity analysis to changes in actuarial assumptions
As at 31 December 2019, the Group used the following actuarial assumptions that had an impact on the level of actuarial provisions for the Polish entities: discount rate 2.0%, expected inflation 2.8% in 2020, 2.6% in 2021 and 2.5% in subsequent years, the remuneration increase rate: 4% in 2020 and 3% in 2021 and 2.5% in subsequent years. In the Group’s foreign entities the main impact had value of discount rate: from 0.3% to 1.4%.
The Group analysed the impact of the financial and demographic assumptions and calculated that the changes of ratios: remuneration ratio by +/- 0.5 p.p., the discount rate by +/- 0.5 p.p. and the rate of turnover by +/- 0.5 p.p. in Poland, Czech, Lithuania, Latvia and Estonia are no higher than PLN 7 million. Therefore, the Group does not present any detailed information.
The Group carries out the employee benefit payments from current resources. As part of employee benefits, the Group also has additional defined contribution programs, where the obligation is met by paying contributions to separate funds (Employee Pension Plan and Employee Capital Plan). Costs related to this are presented in the position Employee benefits.