Rules for setting and monitoring objectives in the Energa SA Group

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The strategic objectives of the Lead Entities of Business Lines and heads of Energa SA departments have been set in a consultation process, using a top-down approach. In line with this approach, the objectives for executive staff covered by the system are underpinned by the strategic objectives of the Group. The objectives for Lead Entities and heads of Energa SA departments have been designed on the basis of the Energa Group’s Strategy, long-term financial plans and budget information. The objec-tives perform a range of functions, including that of a basis for executive incentives within the Energa Group..

Standardisation of HR processes across the Energa Group

In 2018, in the Energa SA Group, the actions aimed at the standardization of personnel processes at Group level were continued.

Employee benefits

In 2018, the system of additional employee benefits at the Energa Group includes, without limitation:

• The "employee tariff" for electricity offered once an employee reaches 1 year of service in the power industry,
• The Company Social Benefits Fund, permitting contributions equal to twice the annual basic contribution set out in the Act on the Company Social Benefits Fund (CSFB),
• Special vouchers given to employees for Easter, the Power Engineers’ Day and Christmas,
• Employee Pension Plans within the Group companies, funded by employers at the rate of 7% of employee remuneration,
• The Additional Medical Services Plan,
• Training provided by all employers within the Energa Group; the forms of employee develop-ment are aimed at preparing staff members to perform their job assignments, improving perfor-mance, building knowledge, motivation and commitment, and bridging competency gaps,
• Agreement securing employee, social and trade union rights of 18 September 2017.

Within the Energa Group companies covered by the Multi-Employer Collective Bargaining Agreement for Power Industry Employees of 13 May 1993, although the Group companies withdrew from the agree-ment on 31 December 2014, some additional pay components remain in place as acquired rights, in-cluding but not limited to:

• An annual bonus, equal to 8.5% of the annual salary fund from the previous year, paid in pro-portion to years in service,
• A supplement to the base salary, depending on years in service,
• Money equivalent of free coal,
• The "employee tariff" for electricity offered once an employee reaches 1 year of service in the power industry,
• Hazard pay,
• Length of service bonus.