Change in employee benefits obligations

The carrying amount of employee benefits liabilities is equal to their present value as at 31 December 2022 and 31 December 2021.

Employee benefits liabilities divided into active and retired employees

The weighted average duration of liabilities for post-employment benefits in 2022 and in 2021 amounted to: Poland 10 and 8 years, the Czech Republic 8 and 9 years and Lithuania, Latvia, Estonia 9 and 10 years, respectively.

In 2022 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 2021 assumptions be used, the provision for the employee benefits would be higher by PLN 117 million.

As at 31 December 2022, the Group used the following actuarial assumptions that had an impact on the level of actuarial provisions for the Polish entities: discount rate 6.7%, the remuneration increase rate: 10% in 2023, 4.9% in 2024 and 2% in subsequent years. In the Group's foreign entities the main impact had value of discount rate: from 3.7% to 4.7%.
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.

Sensitivity analysis to changes in actuarial assumptions
The discount rate, employee rotation and planned increase of remuneration are the key assumptions used in the actuarial model. Selection of discount rate results mainly from the current situation on the Treasury bonds market, while the selection of planned increase of remuneration reflects the Group’s strategy regarding the remuneration policy in subsequent years. Additionally, the impact of change to the employee rotation ratio, which also significantly affect employee benefits provision, but depends on historical rotation ratio of the Group’s employees. As part of the analysis, deviations of +/- 0.5 p.p. were used for these assumptions.