7. Employees and Pension Obligations

As of June 30, 2019, the Covestro Group had 17,136 employees worldwide (December 31, 2018: 16,770). In particular, lower additions to provisions for short-term variable compensation contributed to the reduction of €79 million in personnel expenses to €918 million in the first half of 2019 (previous year: €997 million).

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Employees by Corporate Function1

 

  

 

  

 

 

  

Dec. 31, 2018

  

June 30, 2019

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 pro-rated basis in line with their contractual working hours.

Production

  

10,479

  

10,854

Marketing and distribution

  

3,601

  

3,464

Research and development

  

1,123

  

1,276

General administration

  

1,567

  

1,542

Total

  

16,770

  

17,136

Provisions for pensions and other post-employment benefits increased to €1,704 million (December 31, 2018: €1,445 million). This was principally due to an increase in the valuation of pension obligations as a result of lower discount rates, but was countered, in particular, by a positive development in the value of plan assets.

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Discount Rate for Pension Obligations

 

  

 

  

 

 

  

Dec. 31, 2018

  

June 30, 2019

 

  

%

  

%

Germany

  

1.80

  

1.30

United States

  

4.00

  

3.30