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  • 2018 Corporate Responsibility Report

Personnel costs and personnel cost ratio

By personnel costs we mean basic personnel costs (salaries) and incidental personnel expenses. The indicator is adjusted for special factors in conjunction with personnel restructuring measures (individual downsizing instruments). The personnel cost ratio represents personnel costs as a proportion of revenue. The development of this rate serves as a benchmark for company business. In the Group as a whole, the personnel cost ratio in 2018 showed a slight increase year-on-year, because personnel costs had increased more sharply than our Group revenue. This is due in large part to our collective agreement with the ver.di trade union for Deutsche Telekom employees in Germany.

The disadvantage of the personnel cost ratio is that it ignores external personnel costs. Therefore the total workforce costs ratio is more meaningful for the management of personnel costs at Deutsche Telekom.