10.c Personnel expenses - €4,793 million

 

Millions of euro      
  2020 2019 Change
Wages and salaries 3,133 3,240 (107) -3.3%
Social security contributions 824 875 (51) -5.8%
Italian post-employment benefits 103 103 - -
Post-employment and
other long-term benefits
(485) 108 (593) -
Early retirement incentives 152 101 51 50.5%
Early retirement incentives connected
with restructuring agreements
882 - 882 -
Other costs 184 207 (23) -11.1%
Total 4,793 4,634 159 3.4%


Personnel expenses amounted to €4,793 million in 2020, an increase of €159 million.
The Group’s workforce decreased by 1,536 employees, mainly reflecting the negative balance between new hires and terminations (565 employees) due to early-retirement incentive policies and changes in the consolidation scope (-971 employees), essentially attributable to:

  • the sale of the Reftinskaya GRES plant in Russia;
  • the disposal of hydro plants in the United States;
  • the acquisition of Viva Labs.

The decrease in “wages and salaries” substantially reflects the lower average and total number of employees in 2020.

The €593 million decrease in “post-employment and other long-term benefits” is mainly attributable to the modification in Spain of the electricity discount benefit for employees following the renewal of the 5th Endesa Collective Bargaining Agreement, which led to the release of the associated provision in the amount of €515 million.
Expenses for “early retirement incentives” in 2020 amounted to €152 million, up €51 million, with most of the increase coming in Spain, due to the accrual to the provision for the Plan de Salida in the amount of €783 million prompted by elimination of the extinguishment option of the individual agreement concerning the suspension of employment relationships for certain individual contracts as a result of the signing of the new collective bargaining agreement mentioned above, and in Italy, in reflection of terminations of employment in application of the provisions of Article 4 of Law 92/2012 (the “Fornero Act”) applied mainly in 2018.
The table below shows the average number of employees by category, along with a comparison with the previous year, and the headcount as of December 31, 2020.

No. Average (1) Headcount (1)
  2020 2019 Change at Dec. 31, 2020
Senior managers 1,397 1,375 22 1,397
Middle managers 11,258 11,016 242 11,592
Office staff 36,027 35,066 961 35,883
Blue collar 18,396 20,846 (2,450) 17,845
Total 67,078 68,303 (1,225) 66,717

(1) For companies consolidated on a proportionate basis, the headcount corresponds to Enel’s percentage share of the total.