Remuneration and benefits policy

As the remuneration policy at the PGNiG Group is governed by the Collective Bargaining Agreement, the remuneration rules are transparent.

At the same time, the individual organisational units follow the internal regulations and observe the terms of trade union agreements in force within their own structures. Ensuring that remuneration is appropriate to the type of job and linked to performance quality and efficiency is one of the vital elements of the remuneration policy. Given its deeply rooted ethics, the Group is vigilant in ensuring that there is no discrimination in access to employment and working conditions. In addition to transparent remuneration systems, employees are motivated by numerous benefits as well as co-workers’ readiness to help in completing joint tasks.

New hires at PGNiG undergo an induction programme to welcome them to the company and prepare them for their new role. Task diversity, opportunities to improve qualifications through training and conferences, as well as satisfaction with their tasks are only some of the incentives that motivate employees to work.

Moreover, the PGNiG Group operates an MBO-based bonus scheme for management personnel, including Directors and deputy Directors. As part of the system, objectives are set annually for each management position at the Company and then variable remuneration is paid depending on the assessment of a given manager’s performance against the objectives set for the relevant year. The scheme is designed to define key tasks relevant to PGNiG’s priorities, with bonuses for managers depending on the quality and degree of performance against those priorities. The minimum level of performance against the objectives triggering the right to receive variable remuneration is 80%. The variable remuneration amount is capped at three times the base salary for the positions of Directors (representing 25% of their annual remuneration) and twice the base salary for the positions of Deputy Directors (representing 16.7% of their annual remuneration).

Employees are also entitled to a discretionary performance bonus awarded quarterly by line managers. Another form of remuneration is a discretionary task bonus, earmarked for employees excelling at their work. There are also discretionary project awards for staff involved in the execution of project tasks. In addition, the Group offers the following extra payments, fringe and non-financial benefits to employees hired under contracts of employment:

  • length-of-service awards,
  • retirement severance payments,
  • Employee Pension Scheme,
  • cash awards for employees receiving ‘Outstanding Service to the Oil and Gas Mining Industry’ and ‘For Outstanding Service to the Power Sector’ badges,
  • Christmas bonuses,
  • special bonuses,
  • night work allowance,
  • sickness allowance,
  • rescue worker allowance.
  • payments from the Company Social Benefits Fund,
  • prevention and healing holidays,
  • assistance with the cost of eyeglasses,
  • medical services plan,
  • assistance with commuting costs for Head Office employees,
  • language courses,
  • costs of travel (business travel) for university students,
  • assistance with the costs of graduate, post-graduate, MBA and doctoral programmes, etc.,
  • assistance with the cost of sports and recreational cards,
  • assistance with the cost of tickets for cultural, educational, sports and recreational events,
  • assistance with the cost of miner uniforms.
  • additional holiday entitlement (including health leave, special leave, etc.),
  • extended notice period for employees with over 15 years’ service,
  • recuperative meals (for selected professions),
  • participation in professional development projects,
  • participation in Group-wide projects, as a project team member or project manager,
  • flexible working hours,
  • optionally, remote work and task-based working time,
  • involving employees in ongoing projects, e.g. through appointment of reference groups, organisation and participation in competitions and Group-wide events, such as the ‘Gala Galaktyki’ (‘Galaxy Gala’) or ‘Gala Mocy’ (‘Power Gala’) events, and the ‘Become Good Habits Ambassador’ gamification campaign for employees,
  • experience sharing.

PGNiG employees are given an opportunity to shape the organisation so that it meets their expectations, which is an important nonfinancial incentive. Through the ‘Bank of Ideas’ initiative (a part of the SMILE project), employees propose solutions they would like to see implemented to participate in developing the organisational rules. Implementation of the winning (most desirable) ideas is intended to increase staff’s satisfaction with their work and render the employer more attractive, based on employees’ perception of their effect on the Company’s day-to-day operations. In 2021, out of several dozen employee ideas eight ideas were selected by employees for implementation. These included: ‘Two Hours for the Family’ – each employee could take two hours off work during the spring period; ‘Let’s Get to Know Each Other. Building Open Communication’ – encouraging employees to add their photographs in communication and information tools so as to enable them to better know each other in the era of frequent remote work and online meetings; Infrastructure projects: electric shoe cleaning brush, installation of a mounting arm with four monitors in the Wierzchowice UGSF control room, or placing vending machines with snacks and beverages in office parts.

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