Accounting Policy
With regard to pensions and similar obligations, a distinction is made between defined benefit and defined contribution plans. In the case of defined contribution plans, current contributions are recognized as an expense.
For defined benefit obligations, provisions for pensions, severance payments, and jubilee payments are calculated using the projected unit credit method, which divides the costs of the estimated benefit entitlements over the whole period of employment and thus takes future increases in remuneration into account. Actuarial gains and losses for defined benefit pension and severance payment obligations are recognized in full in the period in which they occur in other comprehensive income. Such actuarial gains and losses are not reclassified to profit or loss in subsequent periods. Actuarial gains and losses on obligations for jubilee payments are recognized in profit or loss. Net interest expenses are calculated on the basis of the net defined benefit obligation and disclosed as part of the financial result. The difference between the return on plan assets and interest income on plan assets included in the net interest expenses is recognized in other comprehensive income.
Provisions for voluntary and mandatory separations under restructuring programs are recognized if a detailed plan has been approved by management and communicated to those affected prior to the statement of financial position date and an irrevocable commitment is thereby established. Expenses related to such restructuring programs are included in the line “Other operating expenses” in the Consolidated Income Statement. Voluntary modifications to employees’ remuneration arrangements are recognized once the respective employees have accepted the employing company’s offer and the offer is no longer revocable. Provisions for obligations related to individual separation agreements that lead to fixed payments over a defined period of time are recognized at the present value of the obligation.
Significant Estimates: Pensions and Similar Obligations
The projected unit credit method of calculating provisions for pensions, severance, and jubilee entitlements requires estimates of discount rates, future increases in salaries, and future increases in pensions.
The biometric basis for calculating provisions for pensions, severance, and jubilee entitlements of Austrian Group companies is provided by AVÖ 2018 P – Angestellte – Rechnungsgrundlagen für die Pensionsversicherung (Biometric Tables for Pension Insurance), using the variant for salaried employees. In other countries, similar actuarial parameters are used. Employee turnover was computed based on age or years of service, respectively. The expected retirement age used for calculations is based on the relevant country’s legislation.
The following tables include details on funded and unfunded pension plans and severance plans, which are operated under broadly similar regulatory frameworks.
Employee benefit obligations related to the Borealis disposal group, classified as held for sale in 2025, are measured in accordance with IAS 19 and presented within liabilities associated with assets held for sale. Expenses related to these obligations are included in Net income from discontinued operations. For details see Note 4 – OMV and ADNOC to Establish a New Polyolefins Joint Venture and Note 5 – Assets and Liabilities Held for Sale.
In EUR mn |
|
|
|
2025 |
2024 |
|---|---|---|
Present value of funded pension obligations |
503 |
867 |
Fair value of plan assets |
–387 |
–618 |
Provisions for funded pension obligations |
115 |
249 |
Present value of unfunded pension obligations |
266 |
462 |
Present value of obligations for severance and other plans |
89 |
157 |
Provisions for pensions, severance, and other plans |
470 |
867 |
Present value of obligations for other long-term benefits |
59 |
89 |
Total provisions for pensions and similar obligations |
530 |
956 |
Other long-term benefits mainly comprise jubilee payments. Employees in Austria and Germany are entitled to jubilee payments after completion of a given number of years of service. These plans are non-contributory and unfunded.
In EUR mn |
|
|
|
|
||
|
2025 |
2024 |
||||
|---|---|---|---|---|---|---|
|
Pensions |
Severance and other plans |
Pensions |
Severance and other plans |
||
Present value of obligations as of January 1 |
1,329 |
157 |
1,332 |
145 |
||
|
|
|
|
|
||
Current service costs |
7 |
4 |
21 |
4 |
||
Past service costs |
– |
–5 |
2 |
6 |
||
Interest costs |
28 |
4 |
45 |
6 |
||
Amounts recognized in the income statement1 |
34 |
4 |
69 |
16 |
||
|
|
|
|
|
||
Adjustments due to changes in demographic assumptions |
– |
–0 |
1 |
–1 |
||
Adjustments due to changes in financial assumptions |
–78 |
–7 |
39 |
3 |
||
Experience adjustments |
–6 |
1 |
–18 |
–1 |
||
Total remeasurements of the period (OCI)1 |
–84 |
–5 |
22 |
2 |
||
|
|
|
|
|
||
Actual benefit payments |
–65 |
–29 |
–89 |
–22 |
||
Currency translation differences |
1 |
–2 |
–5 |
1 |
||
Reclassification to/from liabilities associated with assets held for sale |
–447 |
–35 |
– |
15 |
||
Present value of obligations as of December 31 |
768 |
89 |
1,329 |
157 |
||
|
||||||
In EUR mn |
|
|
||
|
2025 |
2024 |
||
|---|---|---|---|---|
Fair value of plan assets as of January 1 |
618 |
598 |
||
Interest income1 |
12 |
21 |
||
Return on plan assets excluding interest income (OCI)1 |
2 |
8 |
||
Actual benefit payments |
–39 |
–58 |
||
Actual employer contributions |
27 |
51 |
||
Currency translation differences |
–2 |
–1 |
||
Reclassification to/from liabilities associated with assets held for sale |
–232 |
– |
||
Fair value of plan assets as of December 31 |
387 |
618 |
||
|
||||
In EUR mn |
|
|
|
|
||
|
2025 |
2024 |
||||
|---|---|---|---|---|---|---|
|
Pensions |
Severance and other plans |
Pensions |
Severance and other plans |
||
Provisions as of January 1 |
711 |
157 |
734 |
145 |
||
|
|
|
|
|
||
Current service costs |
7 |
4 |
21 |
4 |
||
Past service cost |
– |
–5 |
2 |
6 |
||
Net interest costs |
16 |
4 |
24 |
6 |
||
Amounts recognized in the income statement1 |
22 |
4 |
48 |
16 |
||
|
|
|
|
|
||
Adjustments due to changes in demographic assumptions |
– |
–0 |
1 |
–1 |
||
Adjustments due to changes in financial assumptions |
–78 |
–7 |
39 |
3 |
||
Experience adjustments |
–6 |
1 |
–18 |
–1 |
||
Return on plan assets excluding interest income |
–2 |
– |
–8 |
– |
||
Total remeasurements of the period (OCI)1 |
–86 |
–5 |
15 |
2 |
||
|
|
|
|
|
||
Actual benefit payments |
–27 |
–29 |
–31 |
–22 |
||
Actual employer contributions |
–27 |
– |
–51 |
– |
||
Currency translation differences |
3 |
–2 |
–3 |
1 |
||
Reclassification to/from liabilities associated with assets held for sale |
–216 |
–35 |
– |
15 |
||
Provisions as of December 31 |
381 |
89 |
711 |
157 |
||
|
||||||
Pensions
OMV has both defined contribution and defined benefit pension plans. In the case of defined contribution plans, OMV has no obligations beyond payment of the agreed premiums.
In contrast, participants in defined benefit plans are entitled to pensions at certain levels and are generally based on years of service and the employee’s average compensation. These defined benefit plans expose the Group to actuarial risks, such as longevity risk, interest rate risk, inflation risk (as a result of the indexation of the pension), and market risk.
Pension commitments were calculated based on country- and plan-specific assumptions. A large portion of the pension commitments of several OMV companies was transferred to country-specific external pension funds, however, there is also a number of unfunded plans where the benefit payment obligation lies with the Group. The benefits provided depend on the employee’s length of service and salary in the final years leading up to retirement and, generally, they are updated in line with the consumer price index or a similar index.
In 2025, the majority of pension commitments are attributable to plans in Austria, which are mainly funded, and to Germany, which are unfunded.
In Austria, the majority of pension commitments were transferred to external pension funds managed by APK Pensionskasse AG. The investment of plan assets in Austria is governed by Section 25 of the Austrian Pension Fund Act and the Investment Fund Act. In addition to these regulations, the investment guidelines of APK Pensionskasse AG regulate the spread of asset allocation, the use of umbrella funds, and the selection of fund managers. The majority of plan assets was invested in debt securities traded in liquid markets, for which quoted prices are available.
During 2025, pension commitments related to the Borealis disposal group were reclassified to liabilities associated with assets held for sale. These are attributable mainly to funded pension plans in Belgium and unfunded pension plans in Sweden. The allocation of plan assets was mainly in insurance contracts. The investment plans in Belgium follow the investment strategy of the respective insurance company as well as local legal regulations.
Defined benefit contributions related to 2025 in the amount of EUR 14 mn are expected to be paid in 2026. This amount excludes plans related to the Borealis disposal group that were reclassified to held for sale in 2025.
Severance and Other Plans
Employees of Austrian Group companies whose service began before December 31, 2002, are entitled to severance payments upon termination of employment or upon reaching the normal retirement age. The entitlements depend on years of service and final compensation levels. Entitlement to severance payments for employees whose service began after December 31, 2002, is covered by defined contribution plans. Similar obligations to entitlement to severance payments also exist in other countries where the Group provides employment. These defined benefit plans expose the Group to actuarial risks, mainly interest rate risk and inflation risk (as a result of the indexation of the salary).
The following tables for 2025 do not include plans related to the Borealis disposal group, which was reclassified to held for sale.
|
2025 |
2024 |
||
|---|---|---|---|---|
|
Pensions |
Severance and other plans |
Pensions |
Severance and other plans |
Capital market interest rate |
4.00%–4.25% |
3.50%–7.00% |
3.25%–4.50% |
3.00%–7.00% |
Future increases in salaries |
2.50%–4.00% |
3.75%–4.00% |
3.00%–5.50% |
3.00%–5.50% |
Future increases in pensions |
2.00%–2.25% |
– |
1.75%–3.25% |
– |
The following actuarial assumptions for calculating pension expenses and expected defined benefit entitlements are considered as material and are stress tested within the following ranges. The increase or decrease compared to the values accounted for defined benefit obligations in relative deviation terms and in absolute values are as follows:
|
2025 |
|||||
|---|---|---|---|---|---|---|
|
Capital market interest rate |
Future increases in salaries |
Future increases in pensions |
|||
|
+0.50% |
–0.50% |
+0.50% |
–0.50% |
+0.50% |
–0.50% |
Pensions |
–4.25% |
4.60% |
0.28% |
–0.26% |
3.93% |
–3.66% |
Severance and other plans |
–3.29% |
3.48% |
3.51% |
–3.35% |
– |
– |
|
2024 |
|||||
|---|---|---|---|---|---|---|
|
Capital market interest rate |
Future increases in salaries |
Future increases in pensions |
|||
|
+0.50% |
–0.50% |
+0.50% |
–0.50% |
+0.50% |
–0.50% |
Pensions |
–5.05% |
5.54% |
1.72% |
–1.61% |
3.67% |
–3.40% |
Severance and other plans |
–3.68% |
3.94% |
3.29% |
–3.13% |
– |
– |
In EUR mn |
|
|
|
|
|
|
|
2025 |
|||||
|---|---|---|---|---|---|---|
|
Capital market interest rate |
Future increases in salaries |
Future increases in pensions |
|||
|
+0.50% |
–0.50% |
+0.50% |
–0.50% |
+0.50% |
–0.50% |
Pensions |
–33 |
35 |
2 |
–2 |
30 |
–28 |
Severance and other plans |
–3 |
3 |
3 |
–3 |
– |
– |
In EUR mn |
|
|
|
|
|
|
|
2024 |
|||||
|---|---|---|---|---|---|---|
|
Capital market interest rate |
Future increases in salaries |
Future increases in pensions |
|||
|
+0.50% |
–0.50% |
+0.50% |
–0.50% |
+0.50% |
–0.50% |
Pensions |
–67 |
74 |
23 |
–21 |
49 |
–45 |
Severance and other plans |
–5 |
5 |
5 |
–4 |
– |
– |
In EUR mn |
|
|
|
|
|
2025 |
|||
|---|---|---|---|---|
|
Duration profiles |
Duration |
||
|
1–5 years |
6–10 years |
>10 years |
in years |
Pensions |
278 |
199 |
291 |
9 |
Severance and other plans |
36 |
36 |
17 |
7 |
In EUR mn |
|
|
|
|
|
2024 |
|||
|---|---|---|---|---|
|
Duration profiles |
Duration |
||
|
1–5 years |
6–10 years |
>10 years |
in years |
Pensions |
400 |
343 |
587 |
11 |
Severance and other plans |
72 |
51 |
35 |
8 |
|
2025 |
2024 |
|---|---|---|
Asset category |
|
|
Equity securities |
30% |
19% |
Debt securities |
52% |
33% |
Cash and money market investments |
2% |
2% |
Insurance contracts |
– |
37% |
Other |
16% |
9% |
Total |
100% |
100% |