BIRLESIM_2022 ANNUAL REPORT

BİRLEŞİM MÜHENDİSLİK 2022 FAALİYET RAPORU 166 Birleşim Mühendislik Isıtma Soğutma Havalandırma Sanayi Ticaret Anonim Şirketi and Its Subsidiaries (Currency in Turkish Lira (“TL”) unless otherwise stated). Notes to the Consolidated Financial Statements for the Year Ended 31 December 2022 19. EMPLOYMENT BENEFITS As of the 31 December 2022 and 2021, Employment Benefits details are as follows: Liabilities for Employment Benefits 31 December 2022 31 December 2021 Due to Personnel 6.106.144 4.036.151 Social Security Premiums Payable 4.938.029 1.571.641 11.044.173 5.607.792 Severance Pay Provision Expense Pursuant to the provisions of the Labor Law in force, employees whose employment contracts are terminated to qualify for severance pay are obliged to pay the legal severance pay to which they are entitled. In addition, in accordance with the provision of Article 60 of the Social Security Law No. 506, which is still in effect, with the Law No. 2422 dated March 6, 1981 and numbered 4447 of August 25, 1999, those who receive the severance pay and have the right to leave the job are obliged to pay the legal severance pay. Some transitional provisions related to pre-retirement service conditions were removed from the law with the amendment of the relevant law on 23 May 2002. The severance pat ceiling is revised twice a year, and the maximum amount of 19.982 TL effective fom 01 January 2023 has been taken into account in the calculation of the severance pay provision (01 January 2022 is 10.848,59 TL) Benefits are calculated by estimating the present value of the future probable obligation of the Group arising from the retirement of its employees. TAS 19 (Employee Benefits) requires the Group’s liabilities to be developed using actuarial valuation methods within the scope of defined benefit plans. Accordingly, the actuarial assumptions used in the calculation of total liabilities are given below. The main assumption is that the maximum liability amount for each year of service will increase in line with inflation. Therefore, the discount rate applied represents the expected real rate after adjusting for the effects of future inflation. Therefore, provisions in the accompanying consolidated financial statements as of 31 December 2021 are calculated by estimating the present value of the future probable obligation arising from the retirement of the employees. Provisions made on two different balance sheet dates have been calculated based on the following actuarial assumptions: 31 December 2022 31 December 2021 Annual Inflation Rate 9,50% 15,9% Interest Rate 12,70% 21,00% Discount Rate 2,92% 4,4% Rate of Employees Entitled to Severance Pay in Past Years to Total Employees 51% 75% Short-term Provisions for Employment Benefits 31 December 2022 31 December 2021 Vacation Provision 3.946.037 1.894.032 3.946.037 1.894.032 1 January - 1 January - Vacation Provisions Movements 31 December 2022 31 December 2021 Opening Balance 1.894.032 1.587.127 Movement During the Period, net 2.052.005 306.905 Closing Balance 3.946.037 1.894.032 Long-term Provisions for Employment Benefits 31 December 2022 31 December 2021 Severance Pay Provision 9.598.604 5.786.471 9.598.604 5.786.471