15.1 Short term benefits
The Bank grants to its employee’s short term benefits such as bonuses, salaries, accrued performance costs and social security that are expected to be wholly settled within 12 months. Expenses related to these benefits are recognized over the period in which the employees provide the services to which the payments relate.
15.2 Other long term employee benefits
The Bank grants to its employees seniority bonuses as long term employee benefits whose payment is not expected within the 12 months following the end of the annual period in which the employees have rendered their services. These benefits are projected up to the date of payment and are discounted through the Projected Unit Credit method. The cost of long term employee benefits is allocated across the period from the time the employee was hired the Bank and the expected date of obtaining the benefit.
15.3 Pensions and other post-employment benefits
| – | Defined contribution plans |
The Bank pays contribution monthly to pension funds, due to legal requirements and it will have no legal obligation to pay further contributions.
The Bank recognizes contributions in the statement of income. Any contributions unpaid at the statement of financial position date are included as a liability.
They are post-employment benefit plans in which the Bank has the legal or implicit obligation to take responsibility for the payments of benefits that have agreed. The Bank makes an actuarial valuation on the base of the projected unit credit method and a risk-free rate which reflects current market assessments of the time value of money in each country.
