2018 Registration document and annual fi nancial report - BNP PARIBAS 489
6INFORMATION ON THE PARENT COMPANY FINANCIAL STATEMENTS 31 DECEMBER 2018
6
Notes to the parent company fi nancial statements
Notes 5 SALARIES AND EMPLOYEE BENEFITS
5.a SALARIES AND EMPLOYEE BENEFIT EXPENSES
In millions of euros Year to 31 Dec. 2018 Year to 31 Dec. 2017
Salaries (4,012) (4,343)
Tax and social security charges(1) (1,876) (1,760)
Employee profi t-sharing and incentive plans (228) (238)
TOTAL SALARIES AND EMPLOYEE BENEFIT EXPENSES (6,116) (6,341)
(1) Including adjustments for actuarial gains and losses on post-employment benefi ts.
Income stemming from the French Competitiveness and Employment Tax Credit (CICE) is deducted from salaries and employee benefi t expenses. It amounted to EUR 35 million in 2018 compared to EUR 43 million in 2017.
The use of the CICE is shown in chapter 7 A responsible bank: information on the economic, social, civic and environmental responsibility of BNP Paribas in the Registration document.
The following table gives the breakdown of BNP Paribas SA s headcount:
Headcount at 31 December 2018 31 December 2017
Employees in Metropolitan France 36,720 37,265
of which managers 25,059 24,703
Employees outside Metropolitan France 17,579 15,813
TOTAL BNP PARIBAS SA 54,299 53,078
5.b EMPLOYEE BENEFIT OBLIGATIONS
Post-employment benefits under defined-contribution plans
In France, BNP Paribas SA pays contributions to various nationwide basic and top-up pension plans. BNP Paribas SA has set up a funded pension plan under a company-wide agreement. Under this plan, employees will receive an annuity on retirement in addition to the pension paid by national schemes.
Furthermore, since defined-benefit plans have been closed to new employees in most countries outside France, they are offered the benefi t of joining defi ned-contribution pension plans. Under these plans, the Group s obligation is essentially limited to paying a percentage of the employee s annual salary into the plan.
The amount paid into defined-contribution post-employment plans in France and other countries for the year 2018 was EUR 294 million, compared with EUR 282 million for the year 2017.
Post-employment benefits under defined-benefit plans
Existing legacy defi ned-benefi t plans within BNP Paribas SA are valued independently using actuarial techniques by applying the projected unit cost method in order to determine the expense arising from rights vested in employees and benefi ts payable to retired employees. The demographic and fi nancial assumptions used to estimate the present value of these
obligations and of plan assets take into account economic conditions specifi c to each country.
Provisions set up to cover obligations under defined- benefit post- employment plans totalled EUR 171 million at 31 December 2018 (against EUR 189 million at 31 December 2017), comprised of EUR 106 million for French plans and EUR 65 million for other plans.
BNP Paribas recognised EUR 264 million of retirement plan assets (recognised surplus and reimbursement rights) at 31 December 2018 as compared to EUR 155 million at 31 December 2017.
Pension plans and other post-employment benefits
Pension plans
In France, BNP Paribas SA pays a top-up banking industry pension arising from rights acquired to 31 December 1993 by retired employees at that date and active employees in service at that date. These residual pension obligations are covered by a provision in BNP Paribas SA s fi nancial statements or transferred to an insurance company.
The defi ned-benefi t plans previously granted to Group executives have all been closed and converted into top-up type schemes. The amounts allocated to the benefi ciaries, subject to their presence within the Group at retirement, were fi xed when the previous schemes were closed. These pension plans have been outsourced to insurance companies. The market value of the related plan assets in these companies balance sheets breaks down as 85% bonds, 7% equities and 8% property assets.
