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EMPLOYEE BENEFITS
 12 Months Ended
Dec. 31, 2019
Disclosure of employee benefits [text block] [Abstract]  
Disclosure of employee benefits [text block]

NOTE 23 - EMPLOYEE BENEFITS


   As of   As of 
   December 31,   December 31, 
   2019   2018 
   ThUS$   ThUS$ 
Retirements payments   64,824    56,126 
Resignation payments   9,722    8,802 
Other obligations   19,024    17,437 
Total liability for employee benefits  93,570   82,365 

(a)The movement in retirements and resignation payments and other obligations:

       Increase (decrease)       Actuarial         
   Opening   current service   Benefits   (gains)   Currency   Closing 
   balance   provision   paid   losses   translation   balance 
   ThUS$   ThUS$   ThUS$   ThUS$   ThUS$   ThUS$ 
From January 1 to December 31, 2018   101,087    (7,384)   (6,018)   5,819    (11,139)   82,365 
From January 1 to December 31, 2019   82,365    11,242    (4,390)   10,636    (6,283)   93,570 

The principal assumptions used in the calculation to the provision in Chile are presented below:


   For the period ended 
   December 31, 
Assumptions  2019   2018 
         
Discount rate   3.13%   4.27%
Expected rate of salary increase   4.5%   4.50%
Rate of turnover   6.04%   6.60%
Mortality rate   RV-2014    RV-2014 
Inflation rate   2.8%   2.7%
Retirement age of women   60    60 
Retirement age of men   65    65 

The discount rate corresponds to the 20-year term rate of the BCP Central Bank of Chile Bonds. The RV-2014 mortality tables correspond to those established by the Commission for the Financial Market of Chile and for the determination of the inflation rates; the market performance curves of Central Bank of Chile papers of the BCUs have been used. BCP long term at the date of scope.


The calculation of the present value of the defined benefit obligation is sensitive to the variation of some actuarial assumptions such as discount rate, salary increase, rotation and inflation.


The sensitivity analysis for these variables is presented below:


   Effect on the liability 
   As of   As of 
   December 31,   December 31, 
   2019   2018 
   ThUS$   ThUS$ 
Discount rate        
Change in the accrued liability an closing for increase in 100 p.b.   (7,257)   (6,538)
Change in the accrued liability an closing for decrease of 100 p.b.   5,365    4,918 
           
Rate of wage growth          
Change in the accrued liability an closing for increase in 100 p.b.   4,989    4,750 
Change in the accrued liability an closing for decrease of 100 p.b.   (7,159)   (6,547)

(b)The liability for short-term:

   As of
December 31,
2019		   As of
December 31,
2018		 
   ThUS$   ThUS$ 
           
Profit-sharing and bonuses (*)   91,153    81,222 

(*)Accounts payables to employees (Note 20 letter b)

The participation in profits and bonuses correspond to an annual incentives plan for achievement of objectives.


(c)Employment expenses are detailed below:

   For the year ended 
   December 31, 
   2019   2018   2017 
   ThUS$   ThUS$   ThUS$ 
Salaries and wages   1,478,804    1,481,357    1,604,552 
Short-term employee benefits   147,576    132,394    145,245 
Termination benefits   54,256    54,007    85,070 
Other personnel expenses   114,126    152,211    188,767 
Total  1,794,762   1,819,969   2,023,634