4.8 Personnel - the cornerstone of our operations

Fingrid Oyj employed 380 (380) persons, including temporary employees, at the end of the year. The number of permanent personnel was 338 (327). Of the personnel employed by the company, 24 (23) per cent were women and 76 (77) per cent were men. The average age of the personnel was 44 (44).

9. PERSONNEL EXPENSES, €1,000 2019 2018
Salaries and bonuses 22,308 26,511
Pension expenses - contribution-based schemes 3,454 4,662
Other additional personnel expenses 648 1,017
Total 26,409 32,190
Salaries and bonuses of top management 2,244 1,925

Personnel costs amounted to EUR 31.1 (32.2) million, of which EUR 4.7 was capitalised to investment projects.

In 2019, the Group applied a remuneration system for senior management; the general principles of the system were accepted by the Board of Directors of Fingrid Oyj on 20 December 2018. The total remuneration of the members of the executive management group consists of a fixed total salary, a one-year bonus scheme, and a three-year long-term incentive scheme. The maximum amount of the one-year bonus scheme payable to the CEO was 40 per cent of the annual salary and to the other members of the executive management group 25 per cent of the annual salary. The maximum amount of the annual long-term incentive scheme payable to the CEO was 40 per cent and to the other members of the executive management group 25 per cent.

The Group currently has contribution-based pension schemes only. The pension security of the Group's personnel is arranged by an external pension insurance company. Pension premiums paid for contribution-based schemes are recognised as an expense in the income statement in the year to which they relate. In contribution-based schemes, the Group has no legal or factual obligation to pay additional premiums if the party receiving the premiums is unable to pay the pension benefits.

Personnel, averag 384 376
Personnel, 31 Dec 380 380

 Accounting principles

Employee benefits

Pension obligations

The company has only defined contribution-based pension schemes. A defined contribution-based pension arrangement refers to a pension scheme according to which fixed contributions are paid into a separate entity, and the Group bears no legal or actual obligation to make additional contributions if the fund does not contain sufficient funds to pay out benefits based on work performed during current and previous financial periods to all employees. Under defined contribution-based pension schemes, the Group pays mandatory, contractual or voluntary contributions into publicly or privately managed pension insurance policies. The Group has no other contribution obligations in addition to those payments. The payments are entered as personnel costs when they fall due. Advance payments are entered in the balance sheet as assets insofar as they are recoverable as refunds or deductions from future payments.