22. Employee benefits
The liabilities recognised in the balance sheet relating to deferred employee benefits can be broken down as follows:
| In millions of euros | 31 Dec. 2024 | 31 Dec. 2023 |
|---|---|---|
| Pension obligations Gasunie Deutschland | 84.7 | 87.1 |
| Long-service awards | 10.8 | 9.5 |
| Post-employment fringe benefits for non-active and retired employees | 0.2 | 0.2 |
| Total employee benefits | 95.7 | 96.8 |
Provisions for pension liabilities, Gasunie Deutschland
The pension plan for staff of Gasunie Deutschland who joined the company before 2012 is a defined benefit pension plan, based on a final salary pension system. The entitlements of these employees have not been funded. We treat this pension plan as a defined benefit pension plan.
For the most part, this is a non-current provision. The drop in the pension liabilities in 2024 can be mainly explained by the increase in the discount rate at year-end 2024. Pension liabilities have also decreased due to the fact that the defined benefit pension plan is a closed plan, meaning that the number of active and retired members (i.e. those who accrue, or receive pension) gradually decreases each year.
Pension liabilities as at the end of the financial year are set out in the historical summary below:
| In millions of euros | 31 Dec. 2024 | 31 Dec. 2023 | 31 Dec. 2022 | 31 Dec. 2021 | 31 Dec. 2020 |
|---|---|---|---|---|---|
| Present value of pension entitlements | 84.7 | 87.1 | 77.2 | 107.5 | 116.8 |
| Pension obligation | 84.7 | 87.1 | 77.2 | 107.5 | 116.8 |
| Experience adjustments | 0.1 | 0.8 | 1.1 | -1.0 | -2.2 |
The weighted average duration of the pension liabilities was approximately 16 years at year-end 2024 (year-end 2023: approx. 17 years). The assumptions underlying the calculation of the pension liabilities are as follows:
| 31 Dec. 2024 | 31 Dec. 2023 | |
|---|---|---|
| Discount rate | 3.4% | 3.1% |
| Expected future salary increases | 2,2% - 3,2% | 2,2% - 3,2% |
| Expected future pension increases | 2.2% | 2.2% |
Movements in the present value of pension liabilities were as follows:
| In millons of euros | 2024 | 2023 |
|---|---|---|
| Balance as at 1 January | 87.1 | 77.2 |
| Service costs | 1.5 | 1.4 |
| Accrued interest | 2.7 | 2.8 |
| Actuarial result and adjustments in actuarial tables | -3.9 | 7.9 |
| Pension benefits paid | -2.7 | -2.2 |
| Balance as at 31 December | 84.7 | 87.1 |
The actuarial results are as follows:
| In millions of euros | 2024 | 2023 |
|---|---|---|
| Changes in actuarial financial assumptions | -4.0 | 7.1 |
| Experience adjustments | 0.1 | 0.8 |
| Total actuarial result on pension entitlements | -3.9 | 7.9 |
The actuarial results for 2024 were affected mainly by the increase in the discount rate.
Actuarial results taken to other comprehensive income in 2024 totalled € 3.9 million negative (2023: € 7.9 million positive). At year-end 2024, the accumulated actuarial result, net of deferred taxation, showed a negative amount of € 8.5 million (2023: a negative amount of € 12.5 million). The actuarial results are accounted for in the consolidated statement of other comprehensive income. This also applies to the tax effect on the actuarial results taken to other comprehensive income, as also explained in note 21 ‘Deferred tax liabilities’.
The sensitivity of the calculation of the provision for pension liabilities is as follows:
- If the discount rate changes by 0.1% in otherwise unchanged circumstances, this is expected to lead to a change in the present value of pension entitlements and a change in other comprehensive income of € 1.3 million (year-end 2023: € 1.5 million).
- If the expected future salary increase changes by 0.1% in otherwise unchanged circumstances, this is expected to lead to a change in the present value of pension entitlements and a change in other comprehensive income of € 0.2 million (year-end 2023: € 0.3 million).
- If the expected future pension increase changes by 0.1% in otherwise unchanged circumstances, this is expected to lead to a change in the present value of pension entitlements and a change in other comprehensive income of € 1.1 million (year-end 2023: € 1.1 million).
The total pension expenses for the defined benefit pension plan as presented in the statement of profit and loss comprise:
| In millions of euros | 2024 | 2023 |
|---|---|---|
| Increase in pension entitlements | 1.5 | 1.4 |
| Accrued interest | 2.7 | 2.8 |
| Total pension expenses | 4.2 | 4.2 |
Provision for long-service awards
This provision relates to long-service awards we pay our employees on certain long-service occasions. The movements in this provision were as follows:
| In millions of euros | 2024 | 2023 |
|---|---|---|
| Balance as at 1 January | 9.5 | 8.7 |
| Provisions made during the year | 1.5 | 2.0 |
| Provisions used during the year | -0.2 | -1.2 |
| Provisions reversed during the year | - | - |
| Balance as at 31 December | 10.8 | 9.5 |
The increase in the provision is mainly the result of the increased number of employees. For the most part, this is a non-current provision.
Provision for costs of post-employment fringe benefits for non-active and retired employees
This provision relates to certain allowances we pay our non-active and retired employees. The movements in this provision were as follows:
| In millions of euros | 2024 | 2023 |
|---|---|---|
| Balance as at 1 January | 0.2 | 0.3 |
| Provisions made during the year | - | - |
| Provisions used during the year | - | -0.1 |
| Provisions reversed during the year | - | - |
| Balance as at 31 December | 0.2 | 0.2 |
The provision is a non-current provision.