13 – Personnel Expenses and Employees

Personnel expenses

The BASF Group’s expenses for wages and salaries, social security contributions and pensions and assistance in 2019 totaled €10,924 million (2018: €10,659 million). In 2019, this amount included personnel expenses from the disposal group for the construction chemicals business and proportionally for the oil and gas business in the amount of €557 million. By contrast, the amount in 2018 included personnel expenses from the disposal group for the oil and gas business in the amount of €276 million. The increase in personnel expenses was due primarily to higher expenses for the long-term incentive program, a higher level of wages and salaries and the higher average number of employees resulting from the acquisition of significant businesses from Bayer. Offsetting factors were the merger of the oil and gas businesses of Wintershall and DEA in the joint venture Wintershall Dea, as well as the decrease in expenses for pension benefits due to plan curtailments.

Personnel expenses (Million €)

 

2019

2018

Wages and salaries

8,825

8,470

Social security contributions and assistance expenses

1,545

1,459

Pension expenses

554

730

Personnel expenses

10,924

10,659

Number of employees

As of December 31, 2019, the number of employees decreased to 117,628 employees compared with 122,404 employees as of December 31, 2018. This number includes 6,964 employees in the disposal group for the construction chemicals business as of December 31, 2019 (December 31, 2018: 2,017 employees in the disposal group for the oil and gas business).

Of material significance to the decrease in the number of employees were the merger of the oil and gas businesses of Wintershall and DEA in the joint venture Wintershall Dea, as well as the sale of the paper and water chemicals business. As a result, the number of employees decreased by more than 3,000 employees.

The number of employees in the BASF Group was distributed over the regions as follows:

Number of employees as of December 31

 

2019

2018

Europe

72,153

75,188

of which Germany

54,028

55,839

North America

19,355

20,069

Asia Pacific

18,634

19,303

South America, Africa, Middle East

7,486

7,844

BASF Group

117,628

122,404

of which apprentices and trainees

3,161

3,174

temporary staff

2,606

3,226

Employees from joint operations are included in the number of employees as of the year-end relative to BASF’s share in the company. These had a total of 96 employees (2018: 526 employees). Of material significance to the decrease in the number of employees in joint operations was the merger of the oil and gas businesses of Wintershall and DEA in the joint venture, Wintershall Dea.

The average number of employees was distributed over the regions as follows:

Average number of employees

 

2019

2018

Europe

73,126

73,067

of which Germany

54,722

54,749

North America

19,624

19,051

Asia Pacific

18,843

18,713

South America, Africa, Middle East

7,607

7,540

BASF Group

119,200

118,371

of which apprentices and trainees

2,811

2,819

temporary staff

2,922

3,120

Employees from joint operations are included in the average number of employees relative to BASF’s share in the company. On average, these had a total of 206 employees (2018: 492 employees).

BASF Group’s average number of employees for 2019 includes 6,801 employees from the disposal group for the construction chemicals business and for 2018 2,021 employees from the disposal group for the oil and gas business.