12. Personnel expenses/employees

Personnel expenses increased by €941 million to €7,571 million in 2007 (2006: €6,630 million). The increase compared with 2006 was principally due to the inclusion of the entire year’s personnel expenses for employees of the former Schering group. Changes in exchange rates diminished personnel expenses by €208 million.

	2006	2007
€ million
Wages and salaries	5,216	5,960
Social expenses and expenses for pensions and other benefits	1,414	1,611
of which for defined-contribution pension plans	392	410
of which for defined-benefit pension plans	198	294
Total	6,630	7,571

The personnel expenses shown here do not include the interest portion of personnel-related provisions (particularly pension provisions), which is included in the non-operating result as other non-operating expense (see Note [13.3]).

The average number of employees classified by corporate functions is shown in the table below.

	2006	2007

Production	45,076	48,250
Marketing	31,098	35,849
Research and development	10,356	11,732
General administration	10,064	9,791
Total	96,594	105,622
of which trainees	2,715	2,631

The employees of joint ventures are included in the above figures in proportion to Bayer’s interests in the respective companies. The total number of people employed by joint ventures in 2007 was 66 (2006: 67).

The average number of employees is stated in full-time equivalents, with part-time employees included on a pro-rata basis in line with their contractual working hours.

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