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7. Employee benefits


EUR million 2013 2012
Wages and salaries 713.4 713.8
Pensions (defined contribution plans) 107.4 106.3
Pensions (defined benefit plans) 0.5 1.4
Other social expenses 64.1 63.7
Total 885.4 885.2



Employee benefits


More detailed information on defined benefit pension plans can be found in Note 29.

Employee benefit expense includes EUR 17.5 (3.8) million of personnel restructuring costs.


Group’s employees are involved in the Group’s profit sharing scheme. In Finland, the annual profit bonuses are transferred to the Personnel Fund, the aim of which is to increase the employees' commitment to the long-term targets and to enhance interest in the Group’s financial success. The profit share is determined on the basis of Itella’s profit. The proposed profit share to be distributed for 2013 is EUR 1.2 (3.1) million.


The Group’s experts and managers are involved in the performance-based bonus scheme. The bonus is based on the Group's, the unit's and the team's financial indicators and on personal or team-specific performance indicators. Itella confirms annually the threshold values for these indicators.


Decisions concerning long-term incentive schemes are made by the Board of Directors on the recommendation of the Remuneration and Nomination Committee. Long-term incentive schemes are rolling 3-year programs. The schemes include the Executive Board as well as key employees per scheme named by the Board of Directors. The schemes have been implemented in accordance with the guidelines by the state-owner concerning the remuneration of executive management, issued on 13 August 2012.