29. Employee benefits

Employee benefits comprise:

• liabilities arising from early retirement schemes (RVU scheme);

• obligations arising from schemes relating to early retirement due to heavy work (heavy labour scheme);

• obligations arising from other employee benefits, including anniversary payments and disability benefits.

The change in liabilities is as follows:

Early Retirement Scheme

In 2021, the temporary Early Retirement Scheme (RVU) was introduced. Under this scheme, employees who are in service and will reach the state pension age before 1 January 2028, may retire up to three years earlier, receiving a gross amount of €22,164 either in monthly installments or as a lump sum. In 2022, this scheme was extended by one year (until 1 January 2029) and increased to €24,444 for the scheme commencing on 1 January 2023. At the end of 2024, this scheme will be closed and replaced by the heavy labour scheme.

This scheme is considered a so-called 'post-employment' scheme, whereby the service costs are processed via the profit and loss account and the unrealised actuarial results via the statement of comprehensive income.

The AG2024 forecast table was used to calculate the RVU obligation.

The sensitivities are as follows:

Heavy Work Scheme

NS has agreed a new heavy work scheme in the collective labour agreement, which allows employees who have performed heavy work for a long period to retire up to three years before reaching the state pension age, with compensation of up to 36 months. This scheme, an extension of the temporary RVU, recognises difficult conditions such as irregular hours and aggression, and there is also a transitional arrangement for those who fall between the old and new schemes. The scheme provides for compensation based on the personal points an employee has accumulated for heavy work during his or her career at NS.

The amount of the compensation is calculated by multiplying the monthly amount of the AOW pension by the number of months to which the employee is entitled based on the number of points.

Actuarial assumptions regarding demographic developments, including the expected retention rates of employees, have been used in the valuation of the obligations under the heavy labour scheme. The retention rates reflect the proportion of employees who are expected to remain in service until they become eligible for benefits.

The company applies an age-dependent turnover rate based on historical experience figures. These assumptions are periodically evaluated and, if necessary, adjusted to recent trends in staff turnover.

The participation probability has been set at 85%. This percentage is based on experience with the previous RVU scheme and on the registrations already received for the heavy labour scheme.

This scheme is considered a post-employment scheme, whereby the service costs are recognised in the income statement and the unrealised actuarial results are recognised in the statement of comprehensive income. The initial obligation was formed in 2025 after the conclusion of the collective labour agreement, with the obligation being charged to the 2025 results.

The AG2024 projection table was used to calculate the heavy labour scheme obligation.

The sensitivities are as follows:

Anniversary obligations

Employees who have been employed by NS for 12.5, 25, 40, 45, and 50 years without interruption and consecutively receive an anniversary payment. Employees of the retail company receive an anniversary payment after 5, 12.5, 25, and 40 years of service with NS.

The AG2024 projection table was used to calculate the anniversary obligations.

The sensitivities are as follows:

Disability obligations

This concerns an obligation for:

• a collective labour agreement supplement for employees of NS who are incapacitated for work, which will be paid by the Foundation for the Promotion of Labour Participation in the Event of Incapacity for Work until 2023. From 2024 onwards, NS will pay this collective labour agreement supplement. The relevant scheme is closed to new participants;

• a reintegration allowance paid by NS to a group of disabled persons.

The AG2024 forecast table has been used to calculate the disability obligations.

The sensitivities are as follows:

Retention bonus 2024

The collective labour agreement for the period up to 1 March 2025, stipulates that employees will receive a retention bonus. Employees who are employed on 31 December 2024, and have been employed for at least 12 months will receive the retention bonus in January 2025. Employees who joined the company during 2024 will receive the retention bonus in 2025 at the end of the quarter in which they have been employed for 12 months. The retention bonus also applies to temporary workers.

Pension schemes

The pension schemes of the following pension funds apply to the staff of NS group companies, with an indication of the numbers of active participants affiliated:

Pension scheme Rail and Public Transport Pension Fund (defined contribution scheme)

The pension scheme for the railway industry is administered by the Rail and Public Transport Pension Fund. For financial reporting purposes, the scheme is classified as a defined contribution scheme. A fixed, predetermined annual contribution, expressed as a percentage of the pension base, has been agreed with the Rail and Public Transport Pension Fund. In 2025, NS will pay the nominal pension contribution of 26.6% to the pension fund. Two-thirds of the pension contribution paid to the Rail and Public Transport Pension Fund is paid by the company and one-third by the employees. After paying the agreed contribution, the company has no obligation to pay additional amounts in the event of a shortfall in the pension fund. The actuarial risks and investment risks are borne by the pension fund and its participants.

At the end of 2015, the Group made new agreements with the pension fund for the settlement of the contribution path, effective 1 January 2016. The employee portion of the contribution path (1/3 of the amount) will be fully settled with the employees by the end of 2022. The employer portion of the contribution path (2/3 of the amount) has been added to the lump-sum payment for the wage cost increase and will be recognised as an additional benefit for pension costs until 2035 (note 28).

The Servex supplementary pension scheme is a defined contribution scheme.

Industry pension funds (hospitality and catering, food, metal and engineering)

The basic pension for each employee is covered by funds from multiple employers, in which other companies also participate on the basis of legal obligations. These funds have an indexed average salary scheme and are therefore defined benefit pension schemes. As these funds are not equipped to provide the required information about the proportionate share of the Group's pension obligations and fund investments, the defined benefit plans are treated as defined contribution plans. The Group is obliged to pay the predetermined contribution for these plans. The Group may not reclaim any surplus and is not obliged to make up any shortfall, except by adjusting future contributions.