11.5 Personnel expense

  For the first six months of
(€’000) 2013 2012
Wages and salaries 130,980 128,901
Stock grant plans 2,165 1,201
Social security and pension contributions 26,073 26,243
Italian post-employment benefits 120 117
Other defined benefit plans 259 257
Other defined contribution plans 1,836 1,821
Recovery of personnel expense (681) (790)
Disputes with personnel - -
Restructuring costs 401 2,935
Other costs 1,492 1,148
Total 162,645 161,833
     

The headcount at 30 June 2013 numbered 4,109, up by a net 81 employees on the 4,028 employees at 30 June 2012 and 118 employees on the employees at 31 December 2012.

They are grouped by business unit as follows:

Signalling: 3,045 employees
Transportation Solutions
: 671 employees
Other activities
: 393 employees

The average headcount on the payroll in the first half of 2013 numbered 4,042, compared to 4,040 employees in the first half of 2012.

Personnel expense came to €162,645 thousand, up €812 thousand on the €161,833 thousand for the same period of the previous year.

The stock grant plan cost is recognised on an accruals basis in the year in which the services are rendered. The amount therefore relates to the portion pertaining to the first half of the year of the shares related to the 2013 vesting conditions, which will be allocated in subsequent years after checking they have been met.
The expense is determined on the basis of the estimated number of shares to be allocated and their fair value at the date the related plans were approved by the appointments and remuneration committee.

The Italian post-employment benefit and other defined benefit plan expense represent only the service cost. The interest costs were recognised under financial expense.

Registered Office: 16151 Genoa Via Paolo Mantovani, 3 - 5
Paid-in Share Capital EUR 70,000,000 R.E.A. n. 421689 Register of Enterprises of Genoa Tax Code 01371160662
A Finmeccanica Company