Employee benefits

12 Months Ended

Dec. 31, 2019

30.	Employee benefits


	31 December 2019		31 December 2018
Retirement pay liability provision		222,164		160,613
Unused vacation provision		72,167		64,134

		294,331		224,747

Provision for employee termination benefits

Movements in provision for employee termination benefits are as follows:


	2019			2018
1 January		160,613			149,449
Service cost		35,831			26,971
Remeasurements		36,385			(12,699	)
Interest expense		25,566			16,957
Benefit payments		(36,231	)		(20,065	)

31 December		222,164			160,613

The sensitivity of provision for employee termination benefits to changes in the significant actuarial assumptions is:


31 December 2019	Discount Rate						Inflation Rate

Sensitivity Level	1% increase			1% decrease			1% increase			1% decrease
Change in assumption		(14.2%	)		17.4	%		17.9	%		(14.7%	)

Impact on provision for employee termination benefits		(31,547	)		38,657			39,767			(32,658	)


31 December 2018	Discount Rate						Inflation Rate

Sensitivity Level	1% increase			1% decrease			1% increase			1% decrease
Change in assumption		(13.0%	)		15.7	%		16.5	%		(13.7%	)

Impact on provision for employee termination benefits		(20,880	)		25,216			26,501			(22,004	)

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated.

Defined contribution plans

Obligations for contribution to defined contribution plans are recognized as an expense in the consolidated statement of profit or loss as incurred. The Group incurred TL 12,785, TL 9,361 and TL 8,107 in relation to defined contribution retirement plan for the years ended 31 December 2019, 2018 and 2017, respectively.

Share based payments

The Group has a share performance based payment plan (cash settled incentive plan) in order to build a common interest with its shareholders, support sustainable success, and ensure loyalty of key employees. The KPIs of the plan are; the total shareholder return in excess of weighted average cost of capital (WACC), and ranking of total shareholder return in comparison with

BIST-30

and peer group. Bonus amount is determined according to these evaluations, and it is distributed over a three-year payment plan.

As of 31 December 2019, the Group recognized expenses of TL 28,199 regarding this plan (31 December 2018: TL 26,224).