Benefits for employees

Social Benefit Funds

In KGHM, each of the Company’s divisions has its own Social Benefit Fund. The total average contribution to the Social Fund (basic and additional, under the Collective Labour Agreement), per employee amounted in 2014 to over PLN 6 thousand. This contribution allows the social needs of employees to be met to a considerably higher degree than the standards followed in other companies. In total, the number of the above-mentioned contributions (i.e. statutory and additional) amounted in 2014 to PLN 115.5 million. Nearly 18 400 employees and almost 16 500 pensioners are covered by the Fund. Family members of the employees are also covered by the benefits.

Selected benefits from the Company’s Social Benefit Fund in 2014

Lp.Details2014
Number of benefits used by employeesNumber of childrenAmount of benefits paid (in PLN thousands)
BENEFITS
1Holiday benefits 18 474 46 671
2Refund of holiday travel costs 7 329 1 356
3Preventative healthcare holidays 443 1 474
4Education expenditures subsidies 7 510 10 490 24 076
5Co-financing of holiday retreats for children and youth 4 481 4 904 8 545
6Co-financing of fees for nurseries, pre-schools and clubs for children 2 648 3 202 1 437
7Financial support for employees in the form of vouchers, coupons, prepaid cards 12 050 8 286
8Co-financing of sport, recreation, and tourism 51 573 8 334
9Co-financing of culture and education 5 755 723
10Co-financing of employees’ holidays (apart from holiday benefits) 1 506 1 701
11Allowances 6 468 4 914
Benefits in total 118 237 18 596 107 516
LOANS FOR HOUSING PURPOSES
1Loan for purchase/ building of a flat/ house 505 24 170
2Loan for housing renovation and modernization 1 304 11 245
3Other loans 232 2 049
Loans in total 1 809 37464

Employee Retirement Program

Since 2005, KGHM has had an Employee Retirement Program in the form of an employer contribution (7 percent contributed to the investment funds). Participation in the program is voluntary. Employees can also declare and pay additional contributions into the fund they choose.

Assets of Employee Retirement Program as at 30 December 2014 (PLN)

DivisionAssets as at 30 December 2014Average assetsNumber of persons
Lubin mine 139 827 708 3 364 41 566
Polkowice-Sieroszowice mine 193 832 984 4 862 39 867
Rudna mine 215 313 613 4 899 43 951
Legnica smelter/refinery 31 534 706 890 35 432
Głogów smelter/refinery 87 795 993 2 461 35 675
Cedynia wire rolling mill 8 986 495 225 39 940
Concentrators 35 735 579 913 39 141
Tailings Plant 11 344 009 335 33 863
Emergency Mine-Smelter Rescue Unit 4 516 277 111 40 687
IT Division 9 217 652 243 37 933
Head Office 37 898 582 708 53 529
Total 776 003 598 19 011 40 819

Medical Care Package

Employees and their families can join the Medical Care Package program in KGHM Polska Miedź S.A. The employer covers the costs of employees’ monthly contributions, whereas in the case of family members, it is the employee who is responsible for the payments. The monthly contribution amounts to 35 PLN per person. Holders of the MCP cards can take advantage of a wide range of specialists and medical examinations.

Functioning of the medical care package as at 31 December 2014

DivisionEmployment as at 31 December 2014Number of employees having joined the packagePercentage share
Lubin mine 3 266 1 880 58 per.
Polkowice-Sieroszowice mine 4 614 2 411 52 per.
Rudna mine 4 476 2 662 59 per.
Głogów mine 2 448 1 356 55 per.
Legnica mine 879 623 71 per.
Cedynia wire rolling mill 232 144 62 per.
Concentrators 922 586 64 per.
Tailings Plant 355 239 67 per.
IT Division 240 172 72 per.
Emergency Mine-Smelter Rescue Unit 112 86 77 per.
Head 624 529 85 per.
Total 18 168 10 688 59 per.

Employees insurance

KGHM guarantees its employees life insurance coverage.

The contribution financed by the employer amounts to 25 PLN monthly.

All the above-mentioned benefits are available for all employees - in KGHM Polska Miedź S.A. full time employees and permanent or part time employees are treated the same in terms of additional benefits.