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PL
5.18.1. Defined premiums plans
Costs of premiums which constitute statutory employee overheads and are borne by an employer are charged to the statement of profit or loss for a relevant period. In Poland, they include some of the contribution to pension and disability insurance and all contribution to accident insurance, Fundusz Pracy [Labor Fund] and Fundusz Gwarantowanych Świadczeń Pracowniczych [Guaranteed Employment Benefit Fund], as well as contribution to Zakładowy Fundusz Świadczeń Socjalnych [Social Benefits Fund].
5.18.2. Defined benefits plans
Pursuant to the Labor Code of 26 June 1974 ( Journal of Laws of 2014, item 1502, as amended), the employees of PZU Group entities with registered offices in Poland are entitled to a retirement or disability benefit (in the amount of a monthly salary at the time when they retire) and death benefits (depending on the employee’s duration of employment in PZU Group entities, in the amount being an equivalent of 1 to 6-month salary).
The costs of certain benefits plans estimated using the actuarial methods are recognized on an accrual basis, using the projected unit credit method.
Actuarial profits and losses are recognized in total in the period in which they were disclosed under “Actuarial gains and losses from remeasurements of defined benefit liabilities” under other comprehensive income. Additional information is presented in point 5.16.5.
5.18.3. Costs of paid annual leave
The employees are entitled to paid vacation on the terms and conditions specified in legal acts concerning the labor law (in Poland - the Labor Code). The cost of employee paid vacation is recognized on an accrual basis, using the liability method. The liability due to employee paid vacation is determined based on the difference between the actual use of the vacation by employees and the balance which would take place if the paid vacation was used in proportion to the lapse of time in the period for which the vacation is due.
