220 BMW Group Report 2024 To Our Stakeholders Combined Management Report Group Financial Statements Responsibility Statement and Auditor’s Report Remuneration Report Other Information Sustainability Statement E Employees accompanying partners abroad Family members/partners who accompany their partner on an international assignment if the family member/partner is also employed by the BMW Group. Employees by contract type and gender The number of employees by contract type and gender is rec- orded as at 31 December of the reporting year. Gender identities are defined in line with the ESRS. In addition to the temporary and permanent contract types, non-guaranteed hours employ- ees are also reported in accordance with ESRS. This type of con- tract is not used by the BMW Group. Employees by contract type and geographical area The number of employees by contract type and geographical area is recorded in terms of the number of individuals as at 31 December of the reporting year. In addition to the temporary and permanent contract types, non-guaranteed hours employ- ees are also reported in accordance with ESRS. This type of con- tract is not used by the BMW Group. The breakdown by geo- graphical area is based on the division into six continents as de- fined by the United Nations. Employees by geographical area and country The number of employees is recorded as at 31 December of the reporting year. The breakdown by geographical area is based on the division into six continents as defined by the United Nations. Countries in which the headcount is at least 50 employees, rep- resenting at least 10% of the Company’s total number of em- ployees, are reported separately. For the BMW Group, these are Germany and China in the reporting year. Employees covered by collective bargaining agreements This metric is an additional disclosure based on SASB, TR-AU- 310a.1. The percentage of employees covered by collective bar- gaining agreements is calculated as the ratio of the number of employees covered by collective bargaining agreements to the number of employees as at 31 December of the reporting year. Employees in the inactive early retirement phase BMW Group employees who take advantage of the option of re- tirement via the Company’s partial retirement working arrange- ment and are in the phase of the scheme in which they no longer work for the BMW Group. Expatriates Expatriates are employees who are temporarily sent by the BMW Group to another country to fulfil a task there. These em- ployees establish their primary residence in the destination coun- try. The foreign assignment is usually limited in time, after which the employee returns to the original place of work. G Gender distribution at the management level in number and percentage The gender distribution in management positions in percent is calculated on the basis of the sum of employees in management positions for each gender identity in relation to the total number of employees in management positions as at 31 December of the reporting year. Gender identities are defined in line with the ESRS. In the BMW Group, management positions are those at hierarchical functional levels I to IV below the Board of Manage- ment. Gender pay gap According to the ESRS, the unadjusted gender pay gap between female and male employees is calculated on the basis of average gross hourly pay level. This is calculated on the basis of the sum of the gross annual income as stated in the employee’s payslip (including bonus payments, commissions, additional non-recur- ring payments), Company car as a benefit, employer’s contribu- tion to the Company pension and health insurance, divided by the annual paid working hours less unpaid absences, on average for all male and female BMW Group employees. Expatriates are not taken into account. The unadjusted gender pay gap is first calculated locally for each company or location using the following formula: Gender Pay Gap = Average gross hourly pay level of male employees - Average gross hourly pay level of female employees × 100 Average gross hourly pay level of male employees To determine the total BMW Group gap, the weighted average of the location gaps is calculated based on the number of male and female employees as at 31 December of the reporting year. This approach takes into account a fair consideration of different wage levels and avoids annual volatility due to exchange rate changes or varying purchasing power adjustments in countries with high inflation.