Employees' leaving entitlement

12 Months Ended

Dec. 31, 2021

Disclosure Of Information About Defined Benefit Plans [Abstract]

21 Employees’ leaving entitlement

Changes to employees’ leaving entitlement occurring during 2021 and 2020 are analysed as follows:


	31/12/21			31/12/20
Balance at beginning of year		15,747			16,121
Current service cost		103			95
Interest expense		51			123
Benefits paid		(940	)		(396	)
Actuarial losses		627			212
Reclassification to liabilities directly related to assets held for sale		—			(408	)
Balance at end of year		15,588			15,747

The employees’ leaving entitlement refers to a defined benefit plan provided for by the Italian legislation due and payable upon termination of employment, assuming immediate separation (see note 4(q)).

The principal assumptions used in determining the present value of such defined benefit obligation (“DBO”) related to the employee benefit obligation are reported as follows:


	31/12/21	31/12/20
Annual discount rate	0.98%	0.34%
Annual future salary increase rate	1.75%	0.80%
Annual inflation rate	1.75%	0.80%
Annual DBO increase rate	2.81%	2.10%
Mortality	RG48 mortality tables published by the General State Accounting
Inability	National Institute for Social Security tables, by age and sex
Retirement	100% upon achievement of AGO requisites
Annual frequency of turnover	2.00%	4.00%
Annual frequency of DBO advances	2.00%	2.00%

A quantitative sensitivity analysis for significant assumptions impacting the DBO as at December 31, 2021 and 2020 is reported as follows:


	31/12/21			31/12/20
+1% on turnover rate		(118	)		(115	)
-1% on turnover rate		130			127
+0.25% on annual inflation rate		232			218
-0.25% on annual inflation rate		(227	)		(214	)
+0.25% on annual discount rate		(362	)		(340	)
-0.25% on annual discount rate		375			352

The sensitivity analysis above has been determined based on a method that extrapolates the impact on the defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period. The sensitivity analysis is based on a change in a significant assumption, keeping all other assumptions constant. Such analysis may not be representative of an actual change in the defined benefit obligation as it is unlikely that changes in assumptions would occur in isolation from one another.

The following are the expected payments of the employees’ leaving entitlement in future years:


	31/12/21		31/12/20
Within 1 year		769		1,193
Between 2 and 5 years		3,223		3,782

The average duration of the defined benefit plan as at December 31, 2021 and 2020 is 10.5 years.