| 23.1 | Employee benefits and expenses |
Changes in classes of expenses by employee are detailed as follows:
| From January 1 | From January 1 | From January 1 | ||||||||||
| to December 31, 2017 |
to December 31, 2016 |
to December 31, 2015 |
||||||||||
| Employee benefits and expenses | ThCh$ | ThCh$ | ThCh$ | |||||||||
| Employee benefits | 105,363,612 | 105,530,543 | 100,490,048 | |||||||||
| Salaries and wages | 72,696,365 | 73,352,423 | 69,820,293 | |||||||||
| Social insurance | 7,258,886 | 7,462,819 | 7,360,309 | |||||||||
| Profit-sharing and bonuses, current | 15,410,012 | 16,247,241 | 14,732,107 | |||||||||
| Other personnel expenses | 6,118,720 | 6,137,448 | 6,047,226 | |||||||||
| Termination benefits | 3,879,629 | 2,330,612 | 2,530,113 | |||||||||
| 23.2 | Provision for current employee benefits |
| As of December 31, 2017 |
As of December 31, 2016 |
|||||||
| Description | ThCh$ | ThCh$ | ||||||
| Employee profit participation | 9,390,510 | 9,330,828 | ||||||
| Vacations | 4,943,744 | 5,240,517 | ||||||
| Other | 740,699 | 1,249,940 | ||||||
| Total | 15,074,953 | 15,821,285 | ||||||
| 23.3 | Non-current provisions for employee benefits addition, the Company’s consolidated operating results for the year ended December |
| A. | General aspects: |
Viña Concha y Toro and some of its subsidiaries located in Chile provide severance indemnity benefit plans to active employees which are determined and recorded in the financial statements following the criteria described in 2.17 accounting policies. These benefits are mainly referred to:
| - | Defined Benefits: |
Severance indemnity: The beneficiaries perceive an equivalent to a determined number of days per contractual years of service, at his/her retirement date and/or due to cease of his/her functions. In case of dissociation due to a Company decision, beneficiaries receive the equivalent stipulated by law.
Seniority bonus: The amount of this benefit is defined only once after 10 or 15 years of service of employees (depending of the contract), every 5 years of service.
| B. | Openings, changes and presentation in financial statements: |
Balances of provisions due to benefits to employees, non-current are as follows:
| As of December 31, 2017 |
As of December 31, 2016 |
|||||||
| Description | ThCh$ | ThCh$ | ||||||
| Severance indemnity payment and seniority bonus | 2,829,938 | 2,859,643 | ||||||
| Total | 2,829,938 | 2,859,643 | ||||||
Changes in obligations for employment termination for the years ended as of December 31, 2017, 2016 and 2015 is detailed as follows:
| Non-current employee benefits | ThCh$ | |||
| Balance as of December 31, 2014 | 2,463,037 | |||
| Cost of services, current period | 316,953 | |||
| Interest cost | 99,742 | |||
| Actuarial gain | (25,206 | ) | ||
| Benefits paid | (237,019 | ) | ||
| Balance as of December 31, 2015 | 2,617,507 | |||
| Cost of services, current period | 344,170 | |||
| Interest cost | 129,303 | |||
| Actuarial gain | (52,739 | ) | ||
| Benefits paid | (178,598 | ) | ||
| Balance as of December 31, 2016 | 2,859,643 | |||
| Cost of services, current period | 412,499 | |||
| Interest cost | 48,246 | |||
| Actuarial gain | (109,380 | ) | ||
| Benefits paid | (381,070 | ) | ||
| Balance as of December 31, 2017 | 2,829,938 | |||
| Composition per type of provision | ThCh$ | |||
| Provision of severance indemnity payments | 2,477,899 | |||
| Provision for seniority bonus | 352,039 | |||
| Balance as of December 31, 2017 | 2,829,938 | |||
The Company’s policy is to accrue a determined number of days per year with respect to severance indemnities and in case of dissociation, the employee perceives the indemnity stipulated by law in the Chilean Labor Code (30 days per year with a limit of 11 years).
The main actuarial assumptions used for the calculation of non-current employee benefit obligations is detailed as follows:
| As of December 31, | As of December 31, | As of December 31, | ||||||||||
| Actuarial assumptions | 2017 | 2016 | 2015 | |||||||||
| Retirement rate | 0.71 | % | 0.70 | % | 1.00 | % | ||||||
| Mortality rate | RV-2014 | RV-2009 | RV-2009 | |||||||||
| Future permanence | 8.51 | 8.37 | 7.50 | |||||||||
| Discount rate | 1.71 | % | 4.29 | % | 4.60 | % | ||||||
The amounts recorded in the consolidated statements of income by function are as follows:
| From January 1 | From January 1 | From January 1 | ||||||||||
| to December 31, 2017 |
to December 31, 2016 |
to December 31, 2015 |
||||||||||
| Expense recognized for employment termination benefits | ThCh$ | ThCh$ | ThCh$ | |||||||||
| Cost of services, current period | 412,499 | 344,170 | 316,953 | |||||||||
| Interest cost | 48,246 | 129,303 | 99,742 | |||||||||
| Unaccrued benefits paid | 2,320,194 | 1,539,411 | 1,811,732 | |||||||||
| Total expense recognized in the Consolidated Statement of Income by Function | 2,780,939 | 2,012,884 | 2,228,427 | |||||||||
Sensitivity analysis
As of December 31, 2017, the sensitivity of the value for post-employment benefits before variations in the discount rate of 1% in the case of an increase in the rate represents a decrease of ThCh$ 142,978 (ThCh$ 215,907 as of December 31, 2016) and in case of a decrease in the rate represents an increase of ThCh$ 179,627 (ThCh$ 235,911 as of December 31, 2016).