7.Employees and Pension Obligations

As of June 30, 2021, the Covestro Group had 18,039 employees worldwide (December 31, 2020: 16,501). The increase resulted mainly from the acquisition of the Resins & Functional Materials (RFM) business. In the first half of 2021, personnel expenses rose by €233 million to €1,146 million (previous year: €913 million), largely due to higher expenses for provisions for short-term variable compensation.

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Employees by division1

 

 

 

 

 

 

 

Dec. 31, 2020

 

June 30, 2021

Production

 

10,753

 

11,607

Marketing and distribution

 

3,101

 

3,360

Research and development

 

1,205

 

1,489

General administration

 

1,442

 

1,583

Total

 

16,501

 

18,039

1

The number of employees on either permanent or temporary contracts is stated in full-time equivalents (FTEs). Part-time employees are included on a prorated basis in line with their contractual working hours. Employees in vocational training are not included.

Provisions for pensions and other post-employment benefits decreased to €1,692 million (December 31, 2020: €2,123 million), mainly on account of lower obligations due to higher discount rates.

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Discount rate for pension obligations

 

 

 

 

 

 

 

Dec. 31, 2020

 

June 30, 2021

 

 

%

 

%

Germany

 

0.70

 

1.20

United States

 

2.10

 

2.50