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Employee Benefits
 12 Months Ended
Dec. 31, 2019
Disclosure of defined benefit plans [abstract]  
Employee Benefits
25.Employee Benefits:

 

(a)Provisions for personnel benefits and payroll:

 

   2018   2019 
   MCh$   MCh$ 
         
Short-term personnel benefits (a.2)   47,797    51,051 
Vacation accrual (a.3)   26,855    27,609 
Employee defined benefit plan (a.1)(*)   7,754    7,566 
Other Benefits   10,173    22,849 
Total   92,579    109,075 

 

(*)See Note No. 2 (x) (iii).

 

(a.1)Employee defined benefit plan:

 

   2018   2019 
   MCh$   MCh$ 
         
Current service cost   250    101 
Interest cost on benefit obligation   300    222 
Actuarial gains and losses   127    247 
Net benefit expense   677    570 

 

The net benefit expense is recognized under "Personnel Expenses" (Note No. 34).

 

The principal assumptions used in determining pension obligations for the Bank's plan are shown below:

 

   December 31,   December 31, 
   2018   2019 
   %   % 
         
Discount rate   4.25    3.17 
Annual salary increase   4.42    4.42 
Payment probability   99.99    99.99 

 

The most recent actuarial valuation of the present value of the benefit plan obligation was carried out at December 31, 2019.

 

Changes in the present value of the defined benefit obligation are as follows:

 

   2018   2019 
   MCh$   MCh$ 
         
Opening defined benefit obligation, January 1,   7,676    7,754 
Increase (Decrease) in provision   550    323 
Benefits paid   (599)   (758)
Actuarial gains and losses   127    247 
Closing defined benefit obligation   7,754    7,566 

 

(a.2)The following table details the changes in provisions for incentive plans during 2018 and 2019:

 

   2018   2019 
   MCh$   MCh$ 
         
Balances as of January 1,   43,372    47,797 
Provisions established   40,058    45,792 
Provisions used   (35,633)   (42,538)
Provisions released   —    — 
Balances as of December 31,   47,797    51,051 

 

(a.3)The following table details the changes in provisions for vacation during 2018 and 2019:

 

   2018   2019 
   MCh$   MCh$ 
         
Balances as of January 1,   25,159    26,855 
Provisions established   7,529    7,257 
Provisions used   (5,833)   (6,503)
Provisions released   —    — 
Balances as of December 31,   26,855    27,609 

 

(b)Provisions for share-based employee benefits:

 

As of December 31, 2018 and 2019, the Bank and its subsidiaries do not have a stock compensation plan.