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The PZU Group’s remuneration and benefits system provides employees with equal treatment in shaping remuneration, guided by employees’ individual potential, achievements and performance. The basis for determining an employee’s base salary is the evaluation of the job in question, the competences held by the employee and, in respect of variable components of employee compensation, his or her performance appraisal.
One of the risks of the PZU Group’s operations is the risk of exceeding the personnel budget, i.e. the risk of needing to hire an employee for more than the budgeted amount due to the lack of qualified employees in the labor market and raising salaries for employees with similar competencies and unbudgeted hiring of employees. In order to mitigate this risk, the PZU Group has implemented a financial planning procedure in the PZU Group. As part of this procedure, reserve financing to fund this type of hiring is used, or, as a last resort, the central budget reserve is used. Due to its limited size, there is a risk of overrunning the budget.
Remuneration policy
PZU SA and PZU Życie have adopted the PZU SA and PZU Życie Compensation Policy, which sets out the rules for remunerating employees. PZU and PZU Życie adopted the “Compensation Policies” which are subjected to annual reviews and, if needed, updated accordingly. Above all, the purpose of this document is to ensure that our employee compensation systems are in line with the company’s risk profile, that we achieve our intended business result and that we attain our business objectives within the framework of the risk limits prescribed by the Management Boards. It is also important to motivate employees to enhance their work efficiency constantly and ramp up their commitment while simultaneously linking their pay to the performance of the companies, organizational cells or units in which they are employed.
In the PZU Group entities, employee compensation policies or rules and regulations have been implemented in order to lay down the guidelines and principles for calculating the value of employee remuneration in a manner consistent with the strategy of the respective entity, conducive to the attainment of goals and boosting the Group’s competitiveness on the labor market. PZU Group companies have in force rules and regulations pertaining to bonuses and bonuses and commissions. The high quality of the work done by people employed in the Group is therefore additionally rewarded.
The adopted policies and documents provide equal opportunities to employees for development, improvement of skills and promotions. The remuneration system depends on the type of the work performed, the value of the position for the company, the employees’ competences, required skills, job appraisal and market remuneration levels. This allows to prevent discretion as regards remuneration, among others through setting transparent, non-discriminatory fixed compensation levels for the same type of work or work with the same value, reflecting primarily appropriate professional experience and organizational responsibility defined in the job description.
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Performance assessment
Regular assessment of the level of attaining objectives and the quality of work makes it possible to verify developmental needs and the action plans focused on developing specialist knowledge to help employees achieve their business objectives, and also allows to plan promotions or career paths.
Best practices of PZU and PZU Życie
Total Rewards Statement (TRS)
The employees of PZU and PZU Życie and selected other PZU Group entities receive a personalized Total Rewards Statement (TRS) at the beginning of each year. It presents their total remuneration for the previous calendar year. The individual statement presents all financial rewards that an employee received from the employer, including non-salary benefits used. The statement additionally contains information on other available benefits and forms of support from the employer.
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Gender Pay Gap
PZU conducts an equal pay analysis to monitor the difference between salaries received by men and women for the same work or work of equal value. Tracking the Gender Pay Gap indicator helps detect the wage gap between men and women. The value of the Gender Pay Gap ratio, showing the difference between salaries received by men and women, is a confirmation of PZU’s strive for equal treatment and the absence of discrimination based on gender. The slight pay gap among PZU and PZU Życie employees confirms PZU’s commitment to equal treatment and non-discrimination on the basis of gender.
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Average base salary ratio of women to men - Gender Pay Gap (GPG)
| Average base salary ratio of women to men* | 2022** | 2023 | ||||
|---|---|---|---|---|---|---|
| PZU | PZU Życie | PZU i PZU Życie | PZU | PZU Życie | PZU i PZU Życie | |
| Senior management | 9% | 12% | 10% | 8% | 10% | 9% |
| Managerial positions | 4% | 3% | 5% | 6% | 6% | 5% |
| Expert positions | 9% | 7% | 5% | 9% | 7% | 3% |
| Specialist positions | 7% | 4% | 7% | 6% | 6% | 6% |
| All employees | 7% | 5% | 6% | 7% | 6% | 5% |
**) Data for 2022 adjusted, in accordance with Directive (EU) 2023/970 of 10 May 2023 to strengthen the application of the principle of equal pay for equal work or work of equal value between men and women through pay transparency and enforcement mechanisms.
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PG (CEO) – the ratio of the total annual remuneration of the best-paid person to the average total annual remuneration of all employees (excluding the best-paid person) in 2023 at PZU was 20.1 (19.5 in 2022), while for PZU and PZU Życie combined it was 17.1 (16.7 in 2022)**
GPG unadjusted – the unadjusted wage gap for PZU and PZU Życie in 2023 was 78% (77% in 2022).
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Social protection
All PZU Group employees are entitled to social protection, which is guaranteed by law. Sick leave is paid at the rate prescribed by law. In addition, PZU SA and PZU Życie SA pay for medical insurance at the employee’s request and subsidize 100% of wages for certain illnesses. All parents are entitled to leave related to parenthood in the amount provided by the Labor Code. Injuries to employees that occur at the workplace or on the way to or from the workplace are investigated in order to properly qualify the employee for potential accident insurance benefits In addition, all employees are eligible for employer-sponsored medical insurance, which provides them with private medical care at PZU Health, which can also be extended to their loved ones for an additional fee on preferential terms. In the event of difficult life events (severe and prolonged illness, fortuitous events), PZU employees and pensioners are entitled to receive financial assistance from the Company’s Social Benefits Fund.
Benefits
- Employee Pension Scheme – a pooled investment program the purpose of which is to collect additional funds for the employees’ future retirement benefits; the employer’s contribution is equal to 7% of the employee’s salary;
- benefits from the Company Social Benefit Fund, which employees may adjust in accordance with their specific needs, include, in particular: co-funding of employee vacation options, holiday grants, financial assistance (for instance, in the form of renovation and modernization loans, non-returnable allowances) and a cafeteria system in which the funds granted may be spent on the purchase of various cultural, tourist or sports events or services;
- health benefits – comprehensive private medical care services provided by PZU Zdrowie which may also be provided to relatives, insurance for medicine and supplement of up to 100% of employee compensation in the case of special sickness absences (e.g. due to cancer),
- group life insurance on preferential terms;
- special discount for employees on selected products offered by PZU;
- access to the PZU Cash platform, an innovative platform for employees with offers of financial products including a low-interest loan for any purpose, a mini-loan that acts like an early payment consolidation loan, as well as a mortgage, a savings account, and a currency exchange office;
- promotional terms for employees signing up for an individual pension security account offered under the PZU Voluntary Pension Fund – exemption from fees that are normally charged on contributions for a period of 5 years from the date of enrollment;
- management package for senior management;
- support for activities pursued by employees outside their workplace, including by providing opportunities to participate in the sports activities of the PZU Sport Team and in employee volunteering initiatives, for which staff members may receive additional 2 days off.
PZU Group employees are covered by collective agreements, including the Company Pension Agreements.
Employee Capital Schemes have been implemented in entities where there was previously no Employee Pension Schemes to provide additional retirement security.
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PZU and PZU Życie offer their employees a broad range of fringe benefits tailored to their diverse needs.
Remuneration policy – banks
At Alior Bank, the remuneration area is regulated by the Remuneration policy. The basic principles of the remuneration system are transparency and internal consistency in the process of determining remuneration, which takes into account the adopted strategy and the bank’s business environment, as well as the applied market practice in entities engaged in banking activities. Remuneration is subject to periodic review, at least once a year. In this regard, the Bank acts in compliance with the rules under the Labor Code regarding equal treatment in employment, the right to select and evaluate employees. Through the use of appropriate remuneration mechanisms, the Bank creates a work environment that embraces all forms of diversity and supports individual potential. The remuneration system is a factor in building and protecting the Bank’s reputation and creating sustainable value for all stakeholders.
In Bank Pekao, the Remuneration policy of Bank Pekao is in force. It reflects the mission and values of Bank Pekao’s approach to employee remuneration systems. The primary objective of the Policy is to ensure the competitive level and effectiveness of remuneration, as well as transparency, internal fairness and compliance in terms of conduct and performance. The main assumptions that were fundamental in the construction of the Bank’s Remuneration Policy and are key elements of the Bank’s remuneration practice are a balanced remuneration structure and linking remuneration to performance (the Bank’s performance and the individual performance of employees) and supporting long-term shareholder value creation. Through the use of appropriate remuneration mechanisms, the Bank creates a work environment that embraces all forms of diversity and supports and unleashes individual potential. The approach to remuneration is also designed to attract, retain and motivate highly qualified employees.