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EMPLOYEE BENEFITS
 12 Months Ended
Dec. 31, 2022
EMPLOYEE BENEFITS [Abstract]  
EMPLOYEE BENEFITS

NOTE 22 - EMPLOYEE BENEFITS

 

  As of   As of 
   December, 31,   December 31, 
   2022   2021 
   ThUS$   ThUS$ 
         
Retirements payments   45,076    35,075 
Resignation payments   6,365    5,817 
Other obligations   42,047    15,341 
Total liability for employee benefits   93,488    56,233 

 

(a) The movement in retirements, resignations 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, 2020     93,570    (18,759)   (8,634)   3,968    3,971    74,116 
From January 1 to December 31, 2021     74,116    (11,391)   (5,136)   10,018    (11,374)   56,233 
From January 1 to December 31, 2022     56,233    53,254    (4,375)   (9,935)   (1,689)   93,488 

 

The main assumptions used in the calculation of the provision in Chile are presented below:

 

   For the period ended 
   December 31, 
Assumptions  2022   2021 
         
Discount rate   5.37%   5.81%
Expected rate of salary increase   5.23%   3.00%
Rate of turnover   5.14%   5.14%
Mortality rate   RV-2014    RV-2014 
Inflation rate   3.61%   3.44%
Retirement age of women   60    60 
Retirement age of men   65    65 

 

The discount rate is based on the bonds issued by the Central Bank of Chile with a maturity of 20 years. The RV-2014 mortality tables correspond to those established by the Commission for the Financial Market of Chile. The inflation rates are based on the yield curves of the long term nominal and inflation adjusted bonds issued by the Central Bank of Chile.

 

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, 
   2022   2021 
   ThUS$   ThUS$ 
         
Discount rate        
Change in the accrued liability an closing for increase in 100 p.b.   (3,308)   (2,642)
Change in the accrued liability an closing for decrease of 100 p.b.   3,724    2,959 
Rate of wage growth          
Change in the accrued liability an closing for increase in 100 p.b.   3,520    2,849 
Change in the accrued liability an closing for decrease of 100 p.b.   (3,216)   (2,613)

 

(b)The liability for short-term:

 

  As of   As of 
   December 31,   December 31, 
   2022   2021 
   ThUS$   ThUS$ 
       
Profit-sharing and bonuses (*)    74,802    58,153 

 

(*)Accounts payables to employees (Note 19 letter b)

 

The participation in profits and bonuses related to an annual incentive plan for achievement of certain objectives.

 

(c)Employment expenses are detailed below:

 

   For the period ended 
   December 31, 
   2022   2021   2020 
   ThUS$   ThUS$   ThUS$ 
             
Salaries and wages   (1,024,304)   (825,792)   (850,557)
Short-term employee benefits   (121,882)   (122,650)   (41,259)
Other personnel expenses   (120,150)   (93,457)   (70,244)
Total   (1,266,336)   (1,041,899)   (962,060)