Provisions for employee benefits

12 Months Ended

Dec. 31, 2022

22 Provisions for employee benefits

(€ million)	December 31, 2022	December 31, 2021
Italian defined benefit plans	177	227
Foreign defined benefit plans	142	129
FISDE, foreign medical plans and other	126	162
Defined benefit plans	445	518
Other benefit plans	341	301
Provision for employee benefits	786	819

The liability relating to Eni's commitment to cover the healthcare costs of personnel is determined based on the contributions paid by the Company.

Other employee benefit plans related to deferred monetary incentive plans for €115 million, isopensione plans (a post retirement benefit plan applicable to a specific category of employees) of Eni Plenitude SpA Società Benefit for €99 million, contratti di espansione (agreed redundancy plans for workers) for €85 million, Jubilee Awards for €26 million and other long-term plans for €16 million.

Present value of employee benefits, estimated by applying actuarial techniques, consisted of the following:

	2022												2021
(€ million)	Italian defined benefit plans		Foreign defined benefit plans		FISDE, foreign medical plans and other		Defined benefit plans		Other benefit plans		Total		Italian defined benefit plans		Foreign defined benefit plans		FISDE, foreign medical plans and other		Defined benefit plans		Other benefit plans		Total
Present value of benefit liabilities at beginning of year	227		761		162		1,150		301		1,451		258		1,140		182		1,580		268		1,848
Current service cost	1		11		3		15		52		67		1		16		3		20		49		69
Interest cost	2		24		2		28		1		29		1		24		1		26				26
Remeasurements:	(26	)	(118	)	(33	)	(177	)	(22	)	(199	)			(118	)	(6	)	(124	)	(11	)	(135	)
- actuarial (gains) losses due to changes in demographic assumptions			9				9		(2	)	7		(1	)	(3	)	(4	)	(8	)	(1	)	(9	)
- actuarial (gains) losses due to changes in financial assumptions	(34	)	(144	)	(35	)	(213	)	(15	)	(228	)	(1	)	(111	)	3		(109	)	2		(107	)
- experience (gains) losses	8		17		2		27		(5	)	22		2		(4	)	(5	)	(7	)	(12	)	(19	)
Past service cost and (gain) loss on settlements									127		127										107		107
Plan contributions:			1				1				1				1				1				1
- employee contributions			1				1				1				1				1				1
Benefits paid	(28	)	(30	)	(8	)	(66	)	(87	)	(153	)	(36	)	(39	)	(8	)	(83	)	(56	)	(139	)
Currency translation differences and other changes	1		(5	)			(4	)	(31	)	(35	)	3		(263	)	(10	)	(270	)	(56	)	(326	)
Present value of benefit liabilities at end of year (a)	177		644		126		947		341		1,288		227		761		162		1,150		301		1,451
Plan assets at beginning of year			633				633				633				648				648				648
Interest income			18				18				18				12				12				12
Return on plan assets			(117	)			(117	)			(117	)			(5	)			(5	)			(5	)
Past service cost and (gains) losses settlements			(1	)			(1	)			(1	)
Plan contributions:			14				14				14				15				15				15
- employee contributions			1				1				1				1				1				1
- employer contributions			13				13				13				14				14				14
Benefits paid			(21	)			(21	)			(21	)			(28	)			(28	)			(28	)
Currency translation differences and other changes			(23	)			(23	)			(23	)			(9	)			(9	)			(9	)
Plan assets at end of year (b)			503				503				503				633				633				633
Asset ceiling at beginning of year			1				1				1				1				1				1
Change in asset ceiling
Asset ceiling at end of year (c)			1				1				1				1				1				1
Net liability recognized at end of year (a-b+c)	177		142		126		445		341		786		227		129		162		518		301		819

Employee benefit plans included the actuarial liability, net of plan assets, attributable to partners operating in exploration and production activities of €22 million (€1 million at December 31, 2021). Eni recorded a receivable for an amount equivalent to such liability.

Costs charged to the profit and loss account, valued using actuarial assumptions, consisted of the following:

(€ million)	Italian defined benefit plans	Foreign defined benefit plans		FISDE, foreign medical plans and other	Defined benefit plans		Other benefit plans		Total
2022
Current service cost	1	11		3	15		52		67
Past service cost and (gains) losses on settlements							127		127
Interest cost (income), net:
- interest cost on liabilities	2	24		2	28		1		29
- interest income on plan assets		(18	)		(18	)			(18	)
Total interest cost (income), net	2	6		2	10		1		11
- of which recognized in "Payroll and related cost"							1		1
- of which recognized in "Financial income (expense)"	2	6		2	10				10
Remeasurements for long-term plans							(22	)	(22	)
Administrative fees paid		1			1				1
Total	3	18		5	26		158		184
- of which recognized in "Payroll and related cost"	1	12		3	16		158		174
- of which recognized in "Financial income (expense)"	2	6		2	10				10
2021
Current service cost	1	16		3	20		49		69
Past service cost and (gains) losses on settlements							107		107
Interest cost (income), net:
- interest cost on liabilities	1	24		1	26				26
- interest income on plan assets		(12	)		(12	)			(12	)
Total interest cost (income), net	1	12		1	14				14
- of which recognized in "Payroll and related cost"
- of which recognized in "Financial income (expense)"	1	12		1	14				14
Remeasurements for long-term plans							(11	)	(11	)
Total	2	28		4	34		145		179
- of which recognized in "Payroll and related cost"	1	16		3	20		145		165
- of which recognized in "Financial income (expense)"	1	12		1	14				14

Costs of defined benefit plans recognized in other comprehensive income consisted of the following:

	2022								2021
(€ million)	Italian defined benefit plans		Foreign defined benefit plans		FISDE, foreign medical plans and other		Total		Italian defined benefit plans		Foreign defined benefit plans		FISDE, foreign medical plans and other		Total
Actuarial (gains)/losses due to changes in demographic assumptions			9				9		(1	)	(3	)	(4	)	(8	)
Actuarial (gains)/losses due to changes in financial assumptions	(34	)	(144	)	(35	)	(213	)	(1	)	(111	)	3		(109	)
Experience (gains) losses	8		17		2		27		2		(4	)	(5	)	(7	)
Return on plan assets			117				117				5				5
Remeasurements	(26	)	(1	)	(33	)	(60	)			(113	)	(6	)	(119	)

Plan assets consisted of the following:

(€ million)	Cash and cash equivalents	Equity securities	Debt securities	Real estate	Derivatives	Investment funds	Assets held by insurance company	Other	Total
December 31, 2022
Plan assets with a quoted market price	23	25	260	11	4	4	26	146	499
Plan assets without a quoted market price							4		4
	23	25	260	11	4	4	30	146	503
December 31, 2021
Plan assets with a quoted market price	95	43	299	8	3	1	23	157	629
Plan assets without a quoted market price							4		4
	95	43	299	8	3	1	27	157	633

The main actuarial assumptions used in the measurement of the liabilities at year-end and in the estimate of costs expected for 2023 consisted of the following:

		Italian defined benefit plans	Foreign defined benefit plans	FISDE, foreign medical plans and other	Other benefit plans
2022
Discount rate	(%)	3.7	2.2-15.4	3.7	3.4-3.7
Rate of compensation increase	(%)	3.4	1.9-12.5
Rate of price inflation	(%)	2.4	1.2-11.5	2.4	2.4
Life expectations on retirement at age 65	(years)		13-24	24
2021
Discount rate	(%)	1.0	0.3-15.3	1.0	0.0-1.0
Rate of compensation increase	(%)	2.8	1.5-12.5
Rate of price inflation	(%)	1.8	0.7-13.3	1.8	1.8
Life expectations on retirement at age 65	(years)		13-25	24

The following is an analysis by geographical area related to the main actuarial assumptions used in the valuation of the principal foreign defined benefit plans:

		Euro area	Rest of Europe	Africa	Other areas	Foreign defined benefit plans
2022
Discount rate	(%)	3.5-3.8	2.2-4.8	3.8-15.4	7.0	2.2-15.4
Rate of compensation increase	(%)	1.9-3.0	3.0-4.0	1.9-12.5	5.0	1.9-12.5
Rate of price inflation	(%)	1.9-2.2	1.2-3.5	3.0-11.5	3.0	1.2-11.5
Life expectations on retirement at age 65	(years)	21-22	23-24	13-17		13-24
2021
Discount rate	(%)	0.9-1.2	0.3-1.9	3.0-15.3	6.7	0.3-15.3
Rate of compensation increase	(%)	1.5-3.0	2.5-4.0	1.9-12.5	5.0	1.5-12.5
Rate of price inflation	(%)	1.5-1.9	0.7-3.5	3.0-13.3	3.0	0.7-13.3
Life expectations on retirement at age 65	(years)	21-23	23-25	13-15		13-25

The effects of a possible change in the main actuarial assumptions at the end of the year are listed below:

	Discount rate			Rate of price inflation	Rate of increases in pensionable salaries	Healthcare cost trend rate	Rate of increases to pensions in payment
(€ million)	0.5% Increase		0.5% Decrease	0.5% Increase	0.5% Increase	0.5% Increase	0.5% Increase
December 31, 2022
Italian defined benefit plans	(6	)	7	4
Foreign defined benefit plans	(33	)	34	19	10		13
FISDE, foreign medical plans and other	(6	)	7			6
Other benefit plans	(3	)	3	1
December 31, 2021
Italian defined benefit plans	(9	)	9	6
Foreign defined benefit plans	(49	)	55	34	11		28
FISDE, foreign medical plans and other	(10	)	11			10
Other benefit plans	(4	)	1	1

The sensitivity analysis was performed based on the results for each plan through assessments calculated considering modified parameters.

The amount of contributions expected to be paid for employee benefit plans in the next year amounted to €134 million, of which €40 million related to defined benefit plans.

The following is an analysis by maturity date of the liabilities for employee benefit plans and their relative weighted average duration:

(€ million)	Italian defined benefit plans	Foreign defined benefit plans		FISDE, foreign medical plans and other	Other benefit plans
December 31, 2022
2023	14	29		7	94
2024	13	28		7	95
2025	14	26		7	85
2026	17	35		7	30
2027	15	31		7	16
2028 and thereafter	104	(7	)	91	21
Weighted average duration (years)	7.5	13.2		11.5	2.5
December 31, 2021
2022	16	23		9	83
2023	16	24		7	80
2024	18	29		7	69
2025	20	24		7	25
2026	20	25		7	11
2027 and thereafter	137	4		125	33
Weighted average duration (years)	9.8	17.6		13.6	3.1