RESTRICTEDWORLD TRADE
ORGANIZATIONWT/BFA/W/48/Rev.1
9 November 2000
(00-4747)
Committee on Budget, Finance and Administration
PERFORMANCE AWARD PROGRAMME
Revision
Payroll simulations
1. The present document has been prepared in response to questions asked at the meeting of the
Budget Committee held on 3 July 2000.  A number of concerns were expressed at that meeting,
regarding in particular the cost of the prog ramme proposed in document WT/BFA/W/48.  The
Secretariat was asked to provide simulations based on the present staffing table, to show whether the
proposed programme could be operated within the agreed budget of 2 per cent of net salaries.
2. These simulations are provided below and reflect the proposals contained in document
WT/BFA/W/48, except for two changes which have been introduced in response to comments made
at the above meeting.  First, the initial proposal provided for a fixed, non-pensionable bonus of + 2.5
per cent of net salary for excellent performance.  In the present simulations, the fixed bonus is
replaced by a variable percentage depending on the number of cases qualifying for non-pensionablebonuses and on the balance of funds remaining in the budget after payment of the standard increase
for satisfactory performance.  Secondly, whereas the initial proposal provided for non-pensionable
awards for satisfactory service to be paid to t hose staff whose position on the salary range did not
allow for the full, pensionable increase, the present, revised proposal provides only for pensionable
awards for satisfactory service.  In other words, not all staff will receive an award for satisfactory
service but only those who are not at the end of the salary range.  Those at the top of the salary range
will nevertheless be eligible for non-pensionable awards for excellent performance.
3. For the purpose of these simulations, the calculations are based on a hypothetical total net
salary budget of  SFR 55 million.  In order to demonstrate that the proposed system would operate
within the prescribed budgetary limit, even at its theoretical outer limits, it is assumed that 70 per cent
of the staff are below the grade ceiling and that 100 per cent of those staff are performingsatisfactorily.  It is also assumed that 25 per cent of the staff have recorded an excellent performance
during the year and are thus eligible to receive a share in the residual amount available for non-
pensionable bonuses.
4. The simulation covers a five-year period and illustrates how the proposed programme would
be gradually introduced in order to remain with in the 2 per cent limit. The simulation demonstrates
that the annual cost increase generated by the proposed programme does not exceed the limit of 2 per
cent of the net salary budget over the five-year period.  The simulation also shows that the funds
potentially available for bonuses for excellent performance payable to 25 per cent of the staff increase
over time, from 0.7 per cent of the total net salary budget for this subset of staff in year 1 to 5.2 percent of the net salary budget for this group in year 5, the reason being that the non-pensionable
bonuses have only a one-time impact on the growth of the net salary budget.  In other words, although
they represent an additional cost in the year of their introduction, that cost does not increase over
time.  An additional cap will be placed on the funds earmarked for non-pensionable bonuses, the total
annual cost which will not be allowed to exceed 2 per cent of the total net salary budget.WT/BFA/W/48/Rev.1
Page 2
Performance Award Programme
Five-year payroll simulation
Year
Proposed performance award programme12345
Number of staff (in %) receiving the standard pensionable
increase70 70 70 70 70
Bonus (as % of net salary) payable to 25% of staff 0.7 1.6 2.7 3.9 5.2
Increase in net salary budget (in 1000 CHF)
Standard pensionable increase: 993 993 993 993 993
Bonus for excellent performance: 107 129 151 174 198
Total increase in CHF 1100 1122 1144 1167 1191
Total bonus payments, including previous year's payments 107 236 387 562 759
Increase in net salary budget (as % of previous total)
Standard pensionable increase: 1.81 1.77 1.74 1.70 1.67
Bonus for excellent performance: 0.19 0.23 0.26 0.30 0.33
Total increase in % 2.00 2.00 2.00 2.00 2.00
Net salary budget 56100 57222 58366 59534 60724
Amendments to the Staff Rules
5. The revised amendments which the Director-General proposes to make to the Staff Rules,
pursuant to Staff Regulation 13.2 and Staff Rule 115.2(a), are set out in the annex to the present
document.  These amendments will now take effect on 1 January 2002 and not 1 September 2001 as
indicated in document WT/BFA/W/48, owing to the delay in the approval process.
Draft recommendation
6. The Committee recommends that, in application of Staff Regulation 6.5, the General
Council approve the Performance Award Programme, to take effect on 1 January 2002, as
outlined in document WT/BFA/W/48/Rev.1, togeth er with the consequent amendments to Staff
Rules 106.3, 106.4, 106.13 and Annex 1 thereof.WT/BFA/W/48/Rev.1
Page 3
ANNEX
Amendments to the Staff Rules
Rule 106.3
Performance awards
(a) A staff member whose performance is judged to be fully satisfactory in the light of
the annual evaluation report shall receive the pensionable increase in annual salaryshown in Annex 1 of the Staff Rules , or the part thereof that brings the staff member's
salary to the maximum of the salary range for the staff member's grade.
(b) A staff member whose performance is judged to be excellent in the light of the
annual evaluation report shall be eligible to receive a non-pensionable, lump-sum,bonus payment under conditions established by the Director-General, in addition to
the award specified in paragraph (a) above.  A staff member who has been promoted
during the reference period shall not be eligible to receive a bonus payment.
(c) A staff member whose performance is judged to require improvement in the light of
the annual evaluation report shall receive no performance award.
Rule 106.4
Salary on promotion
(a) Upon promotion, a staff member shall rece ive a salary increase equivalent to two
pensionable increases in the lower grade.  However, the resulting salary shall in no
case be greater than the maximum of the salary range for the grade to which the staff
member has been promoted.  If the salary corresponding to the minimum of the
salary range for the higher grade yields an increase greater than two pensionable
increases, the staff member shall be entitled to that salary.
(b) If promotion takes effect on the date at which a pensionable increase falls due, the
new salary shall be calculated after the award of any pensionable increase due in the
lower grade.
Rule 106.13
Definition of dependency
(a) A dependent spouse shall be a spouse whose earnings, if any, do not exceed the
equivalent of the pensionable remuneration at the minimum of the salary range for
grade 1 in Geneva.
(b) Unchanged.
(c) Unchanged.
(d) Unchanged.WT/BFA/W/48/Rev.1
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WTO STAFF RULES - ANNEX 1 - Page 1
Annual Net Salary and Pensionable Remuneration Scale Effective 1 January 2002
(in Swiss Francs)
RANGE GRADE
Minimum MaximumPENSIONABLE INCREASE
Net salary 1
Pensionable remuneration46,363
51,00463,183
72,9171,901
2,091
Net salary 2
Pensionable remuneration50,529
56,40768,877
80,5772,021
2,256
Net salary 3
Pensionable remuneration55,062
62,30175,048
89,4282,147
2,430
Net salary 4
Pensionable remuneration60,066
68,84481,866
99,2562,283
2,616
Net salary 5
Pensionable remuneration65,729
76,25289,576
110,4102,432
2,821
Net salary 6
Pensionable remuneration71,981
85,00498,108
123,1282,591
3,060
Net salary 7
Pensionable remuneration78,819
94,860107,425
137,0922,759
3,320
Net salary 8
Pensionable remuneration94,015
117,007125,456
165,4872,820
3,510
Net salary 9
Pensionable remuneration111,692
143,600144,737
196,9482,904
3,734
Net salary 10
Pensionable remuneration131,907
175,829160,155
223,1193,034
4,044
Net salary 11
Pensionable remuneration146,625
200,089167,049
235,0491,613
2,201
Net salary 12
Pensionable remuneration162,511
227,161176,916
252,2331,788
2,499WT/BFA/W/48/Rev.1
Page 5WTO STAFF RULES - ANNEX 1 - Page 2
Annual Net Salary Scale Applicable to Staff Members in Grades 1-7 Recruited Before 1 September 1995
(in Swiss Francs)
GRADE Minimum Maximum PENSIONABLE INCREASE
1 48,672 64,722 1,995
2 53,054 70,534 2,122
3 57,810 76,920 2,255
4 63,061 83,861 2,396
5 69,005 91,785 2,553
6 75,571 100,501 2,721
7 82,752 110,052 2,896WT/BFA/W/48/Rev.1
Page 6
WTO STAFF RULES - ANNEX 1 - Page 3
Pensionable Remuneration Scale Applicable to Staff Members in Grades 1-7 Recruited Before 1 September 1995
(in Swiss Francs)
GRADE Minimum Maximum PENSIONABLE INCREASE
1 63,791 85,816 2,615
2 69,777 93,864 2,791
3 76,292 102,761 2,975
4 83,525 112,537 3,174
5 91,740 123,697 3,394
6 100,861 135,973 3,631
7 110,975 149,425 3,884WT/BFA/W/48/Rev.1
Page 7WTO STAFF RULES - ANNEX 1 - Page 4
Pensionable Remuneration Scale Applicable to Staff Members in Grades 1-7 Recruited Between 1 September 1995 and 31 May 1997
(in Swiss Francs)
GRADE Minimum Maximum PENSIONABLE INCREASE
1 58,571 78,803 2,401
2 64,067 86,212 2,563
3 70,056 94,251 2,732
4 76,689 103,189 2,914
5 84,231 113,307 3,117
6 92,580 124,572 3.333
7 101,752 137,113 3,561WT/BFA/W/48/Rev.1
Page 8
WTO STAFF RULES - ANNEX 1 - Page 5
Pensionable Remuneration Scale Applicable to Staff Members in  Grades 1-7 Recruited Between 1 June 1997 and 31 December 1998
(in Swiss Francs)
GRADE Minimum Maximum PENSIONABLE INCREASE
1 57,859 77,634 2,372
2 63,237 85,098 2,529
3 69,087 93,188 2,694
4 75,551 102,122 2,870
5 83,106 112,233 3,075
6 91,506 124,016 3,294
7 100,693 137,113 3,524
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