BASF Report 2021

28. Personnel Expenses and Employees

Personnel expenses

The BASF Group’s expenses for wages and salaries, social security contributions and assistance, as well as for pensions in 2021 totaled €11,097 million. In 2020, these expenses amounted to €10,576 million and included personnel expenses from the disposal group for the construction chemicals business in the amount of €291 million until the date of the divestiture. The rise in personnel expenses in 2021 was mainly due to higher bonus provisions. Particularly the lower average number of employees had an offsetting impact.

Personnel expenses (Million €)

 

2021

2020

Wages and salaries

8,847

8,416

Social security contributions and assistance expenses

1,519

1,424

Pension expenses

732

736

Personnel expenses

11,097

10,576

Number of employees

As of December 31, 2021, the number of employees increased to 111,047 employees compared with 110,302 employees as of December 31, 2020. The rise was primarily due to staff increases in Asia Pacific, especially in connection with the formation of BASF Shanshan Battery Materials Co., Ltd., as well as for the new Verbund site in Zhanjiang, China. The divestiture of the pigments business, which comprised around 2,500 employees, had an offsetting impact.

As of December 31, 2021, a total of 1,175 employees (2020: 1,137 employees) worked at joint operations.

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

Number of employees as of December 31

 

2021

2020

Europe

67,532

68,849

of which Germany

51,026

51,961

North America

16,753

16,948

Asia Pacific

19,976

17,753

South America, Africa, Middle East

6,786

6,752

BASF Group

111,047

110,302

of which apprentices and trainees

3,028

3,120

temporary staff

2,329

2,128

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

Average number of employees

 

2021

2020

Europe

67,788

71,329

of which Germany

51,144

53,080

North America

16,765

18,599

Asia Pacific

18,464

18,719

South America, Africa, Middle East

6,799

7,326

BASF Group

109,815

115,973

of which apprentices and trainees

2,750

2,821

temporary staff

2,400

2,518

The average number of employees decreased to 109,815 employees in 2021 (2020: 115,973 employees). This decline was primarily due to the divestiture of the construction chemicals business in the previous year and to the divestiture of the pigments business in the year under review. 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 1,143 employees (2020: 1,055 employees).

Verbund
In the BASF Verbund, plants are intelligently connected. In this system, chemical processes consume less energy, produce higher product yields and conserve resources. The by-products of one plant serve as feedstock elsewhere, creating efficient value chains – from basic chemicals to high value-added solutions such as coatings or crop protection products. Our Verbund concept – realized in production, technologies, the market and digitalization – enables innovative solutions for a sustainable future.