6. PERSONNEL EXPENSES

Cost of sales, selling, general and administrative expenses and expenses on research and development included personnel expenses of € 4,052 million and € 3,804 million in 2007 and 2006, respectively.

Personnel expenses comprised the following: 

in million €	2007	2006
Wages and salaries	3,252	3,073
Social security contributions, cost of retirement pensions and social assistance	800	731
thereof retirement pensions	103	96
Personnel expenses	4,052	3,804

The Fresenius Group’s annual average number of employees by function is shown below:

	2007	2006
Production and service	86,898	79,025
Administration	12,965	12,922
Sales and marketing	7,429	6,852
Research and development	970	888
Total employees (per capita)	108,262	99,687