22. 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 December 31, 2020	As at December 31, 2019
Forecast inflation rate (%)	2.58 in 2021, 2.5 in 2022 and onwards	2.85 in 2020, 2. 58 in 2021, 2.5 in 2022 and onwards
Discount rate (%)	1.3	2.0
Average assumed annual growth of bases (%)	0.0 – 3.03	2.1 – 5.0
Employee turnover rate (%)	0.0 – 15.0	0.2 – 12.5
Forecast increase rate for the value of medical services (%)	2.5 – 2.58	0.0 – 2.5
Forecast increase rate for the value of allowance for Company Social Benefits Fund (%)	0.0 – 4.0	4.0 – 13.0

The employee attrition probability is based on the historical data on employee turnover in the Group and statistical data on employee attrition in the industry.
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 1.3% was adopted for discounting future payments of benefits as at the reporting date (December 31, 2019: 2.0%), 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 December 31, 2020		As at December 31, 2019
	Long-term	Short-term	Long-term	Short-term
Retirement severance and death benefits	557	105	553	107
Coal allowances in kind	132	9	139	9
Energy tariff	951	32	806	26
Company Social Benefits Fund	501	17	428	14
Health care	71	4	64	3
TOTAL POST-EMPLOYMENT BENEFITS	2,212	167	1,990	159
Jubilee awards	795	109	806	111
TOTAL ACTUARIAL PROVISIONS	3,007	276	2,796	270

	Retirement severance and death benefits	Coal allowances in kind	Energy tariff	CSBF	Health care	Jubilee awards	Total
AS AT JANUARY 1, 2020	660	148	832	442	67	917	3,066
Actuarial gains and losses	(8)	(6)	33	22	3	(4)	40
Discount rate adjustment	33	8	97	48	5	40	231
Current employment costs	30	1	26	13	2	49	121
Past employment costs	(9)	–	6	(5)	(1)	(1)	(10)
Interest costs	13	3	17	9	1	18	61
Benefits paid / Provisions used	(58)	(8)	(27)	(17)	(3)	(115)	(228)
Other changes	1	(5)	(1)	6	1	–	2
AS AT DECEMBER 31, 2020	662	141	983	518	75	904	3,283
Change charged to operating costs	(21)	(1)	(32)	(8)	(1)	(84)	(147)
Change recognised in finance income/(costs)	(13)	(3)	(17)	(9)	(1)	(18)	(61)
Change charged to other comprehensive income	(25)	(2)	(130)	(70)	(8)	–	(235)

	Retirement severance and death benefits	Coal allowances in kind	Energy tariff	CSBF	Health care	Jubilee awards	Total
AS AT JANUARY 1, 2019	588	140	727	330	60	860	2,705
Actuarial gains and losses	14	–	(37)	50	(1)	39	65
Discount rate adjustment	49	12	116	57	6	60	300
Current employment costs	30	2	20	10	2	46	110
Past employment costs	–	(1)	7	(1)	–	–	5
Interest costs	18	4	22	9	2	26	81
Benefits paid / Provisions used	(39)	(9)	(23)	(13)	(2)	(114)	(200)
AS AT DECEMBER 31, 2019	660	148	832	442	67	917	3,066
Change charged to operating costs	(30)	(1)	(27)	(9)	(2)	(145)	(214)
Change recognised in finance income/(costs)	(18)	(4)	(22)	(9)	(2)	(26)	(81)
Change charged to other comprehensive income	(63)	(12)	(79)	(107)	(5)	–	(266)

	Value in statement	Financial discount rate		Planned increases in bases
	Value in statement	-1 p.p.	+ 1 p.p.	-1 p.p.	+ 1 p.p.
Retirement severance and death benefits	662	56	(48)	(48)	55
Coal allowances in kind	141	13	(12)	(12)	13
Energy tariff	983	178	(138)	(140)	177
Company Social Benefits Fund	518	85	(67)	(69)	85
Health care	75	8	(8)	(8)	9
Jubilee awards	904	67	(58)	(58)	66
TOTAL	3,283	407	(331)	(335)	405

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