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Employee benefits
12 Months Ended
Dec. 31, 2022
Text block [abstract]  
Employee benefits

29.  Employee benefits

31 December

31 December

    

2022

    

2021

Retirement pay liability provision

 

1,590,756

 

844,540

Unused vacation provision

 

199,275

 

165,082

1,790,031

 

1,009,622

29.  Employee benefits (continued)

Provision for employee termination benefits

Movements in provision for employee termination benefits are as follows:

    

2022

    

2021

Balance at 1 January

 

844,540

 

673,878

Service cost

 

101,752

 

126,088

Remeasurements

 

1,107,508

 

328,711

Interest expense

 

112,649

 

75,110

Benefit payments

 

(67,528)

 

(102,752)

Acquisition through business combinations

126

Inflation adjustment

(508,165)

(256,621)

Balance at 31 December

 

1,590,756

 

844,540

The sensitivity of provision for employee termination benefits to changes in the significant actuarial assumptions is:

31 December 2022

Interest Rate

Inflation Rate

Sensitivity Level

    

1% increase

    

1% decrease

    

1% increase

    

1% decrease

Change in assumption

 

(15.4)

%

19.0

%

18.9

%

(15.6)

%

Impact on provision for employee termination benefits

 

(244,976)

302,244

300,653

(248,158)

31 December 2021

Interest Rate

Inflation Rate

Sensitivity Level

    

1% increase

    

1% decrease

    

1% increase

    

1% decrease

Change in assumption

 

(13.4)

%

16.3

%

16.5

%

(13.8)

%

Impact on provision for employee termination benefits

 

(113,169)

 

137,660

 

139,348

 

(116,546)

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated.

Defined contribution plans

Obligations for contribution to defined contribution plans are recognized as an expense in the consolidated statement of profit or loss as incurred. The Group is obliged to contribute a certain percentage of personnel wages to pension plans. The Group incurred TL 64,309, TL 66,401 and TL 70,379 in relation to the defined contribution retirement plan for the years ended 31 December 2022, 2021 and 2020 respectively.

Share based payments

The Group has a share performance based payment plan (cash settled incentive plan) in order to build a common interest with its shareholders, support sustainable success, and ensure loyalty of key employees. The KPIs of the plan are; the total shareholder return in excess of weighted average cost of capital (WACC), and ranking of total shareholder return in comparison with BIST-30 and peer group. Bonus amount is determined according to these evaluations, and it is distributed over a three-year payment plan.

As of 31 December 2022 and 2021, the Group has not recognized any expenses regarding this plan.