9.Personnel Expenses and Employee Numbers

Personnel expenses in fiscal 2019 were comprised as shown in the following table:

Personnel expenses

 

 

 

 

 

 

 

2018

 

2019

 

 

€ million

 

€ million

Salaries

 

(1,610)

 

(1,388)

Social expenses and expenses for pensions and other benefits

 

(348)

 

(374)

of which for defined contribution pension plans

 

(88)

 

(96)

of which for defined benefit and other pension plans

 

(105)

 

(107)

Total

 

(1,958)

 

(1,762)

Personnel expenses decreased in fiscal 2019 primarily due to significantly lower expenses for short-term variable compensation under the Group-wide Covestro (Covestro PSP).

For further information on the components of Covestro PSP, see “Compensation Report” in the combined management report.

Average number of employees

 

 

 

 

 

 

 

2018

 

2019

Production

 

10,348

 

10,955

Marketing and distribution

 

3,580

 

3,438

Research and development

 

1,104

 

1,210

General administration

 

1,575

 

1,539

Total

 

16,607

 

17,142

Employees in vocational training

 

482

 

515

The number of employees on either permanent or temporary contracts is stated in full-time equivalents (FTE). Part-time employees are included on a pro-rated basis in line with their contractual working hours. The figures do not include employees in vocational training.

PSP/Profit Sharing Plan
Covestro PSP is the Group’s short-term variable compensation system. It is based exclusively on the target attainment of the relevant Covestro performance indicators (core volume growth, FOCF, ROCE).