| 28. | Employee benefits |
| 31 December 2017 |
31 December 2016 |
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Retirement pay liability provision |
149,449 | 120,755 | ||||||
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Unused vacation provision |
48,217 | 43,798 | ||||||
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| 197,666 | 164,553 | |||||||
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Provision for annual leave
As 31 December 2017 and 2016, provision for annual leave amounted to TL 48,217 and TL 43,798, respectively.
Provision for employee termination benefits
Movements in provision for employee termination benefits are as follows:
| 2017 | 2016 | |||||||
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1 January |
120,755 | 74,435 | ||||||
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Service cost |
32,696 | 25,933 | ||||||
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Remeasurements |
3,738 | 34,532 | ||||||
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Interest expense |
13,877 | 8,361 | ||||||
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Benefit payments |
(21,617 | ) | (22,506 | ) | ||||
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31 December |
149,449 | 120,755 | ||||||
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The sensitivity of provision for employee termination benefits to changes in the significant actuarial assumptions is:
| 31 December 2017 | Discount Rate | Inflation Rate | ||||||||||||||
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Sensivity Level |
1% increase | 1% decrease | 1% increase | 1% decrease | ||||||||||||
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Change in assumption |
(14.6% | ) | 18.1 | % | 18.3 | % | (14.3% | ) | ||||||||
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Impact on provision for employee termination benefits |
(21,820 | ) | 27,050 | 27,349 | (21,371 | ) | ||||||||||
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| 31 December 2016 | Discount Rate | Inflation Rate | ||||||||||||||
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Sensivity Level |
1% increase | 1% decrease | 1% increase | 1% decrease | ||||||||||||
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Change in assumption |
(14.7% | ) | 18.1 | % | 18.6 | % | (15.1% | ) | ||||||||
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Impact on provision for employee termination benefits |
(17,751 | ) | 21,857 | 22,460 | (18,234 | ) | ||||||||||
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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 8,107, TL 7,722 and TL 8,364 in relation to defined contribution retirement plan for the years ended 31 December 2017, 2016 and 2015, 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 2017, the Group recognized expenses of TL 29,413 regarding this plan (31 December 2016: None).