9 Employee benefits expenses and obligations

Employee benefits expenses

EUR 000

2024/2025

2023/2024

Salaries and other employee benefit expenses

366,128

349,941

Social security costs

50,363

45,684

Pension costs

24,220

22,626

Long-term employee benefits

508

190

Termination benefits

3,096

1,826

444,315

420,267

Salaries and other employee benefit expenses mainly increased in line with the increase in number of staff by 4.1%. The average salary per KPMG employed FTE increased by 2.4% (2023/2024: increase 4.0%).

An amount of EUR 6.7 million is recognized in the income statement related to research and development, of which EUR 5.2 million in salaries and other employee benefit expenses and EUR 1.5 million in other expenses, see Note 10 (2023/2024: EUR 8.2 million in total, of which EUR 6.4 million in employee expenses and EUR 1.8 million in other expenses).

Total employee expenses increased by 5.7% (2023/2024: increase 5.3%).

Employee benefits

EUR 000

September 30, 2025

September 30, 2024

< 1 year

> 1 year

Total

< 1 year

> 1 year

Total

Long-term employee benefit obligations

451

1,769

2,220

831

1,845

2,676

Short-term employee benefit obligations

53,528

53,528

50,605

50,605

53,979

1,769

55,748

51,436

1,845

53,281

Long-term employee benefits mainly consist of WIA supplement (Occupational Disability Insurance Act) benefits and provisions for long-service entitlements.

Short-term employee benefit obligations consist of accruals for variable pay amounting to EUR 25,827 (September 30, 2024: EUR 24,151), holiday allowances amounting to EUR 16,989 (September 30, 2024: EUR 16,088) and benefit-on-demand liabilities amounting to EUR 10,732 (September 30, 2024: EUR 10,366). These obligations include a number of special schemes that relate to supplements to social benefits.

Movements in long-term employee benefits:

EUR 000

2024/2025

2023/2024

Balance as at October 1

2,676

2,007

Utilized

-320

-208

(Release)/ Addition

-187

627

Adding of interest and change in discount rate

51

250

Balance as at September 30

2,220

2,676

Number of staff and equity partners

Average FTEs

2024/2025

2023/2024

Professional staff

3,416

3,254

Support staff

762

744

Support staff for KPMG International

128

140

4,306

4,138

Equity partners

170

171

4,476

4,309

Please see Note 7 Other income for more details with respect to support staff for KPMG International.