RESTRICTED  
  
WT/BFA/W/ 416/Rev. 3 
 
14 July 2017 
(17-3800) Page: 1/6 
Committee on Budget, Fi nance and Administration  
 
REVIEW OF THE ADJUSTMENT OF THE WT O DEPENDENCY ALLOWAN CES 
Revision  
1.  In accordance with WTO Staff Regulation 6.5, "staff members shall be entitled to a dependency 
allowance in respect of a primary or secondary dependant". The methodology for establishing 
these allowances is set out in Annex 2 of the WTO Staff Rules1. 
2.  It is recalled that the methodology for adjusting WTO dependency allowances was 
recommended by the Committee on Budget, Finance and Administration for approval in document 
WT/BFA/75, and approved  by the General Council (WT/GC/M/90, paragraph 158) in 
December  2004.  
3.  As per the methodology, set out in Appendix 1 (WTO Staff Rules, Annex 2), the amounts of the 
WTO dependency allowances are derived based on the level of tax rebates available in the Cant on 
of Geneva to persons with different family situations as compared to single persons (i.e., persons 
with a non -working spouse and/or children). The relevant Staff Rules regulating the definition of 
dependency and the eligibility to dependency allowances are set out in Appendix 2.  
4.  It is important to note that the tax rebates and social security payments available to families in 
the Canton of Geneva are only used as a reference for the purpose of establishing the WTO 
dependency allowances. The original logi c is that these rebates and payments represent locally 
determined standards for assisting employees with dependents. The United Nations uses a similar 
basis (i.e., local taxation conditions) for establishing dependency allowances for locally hired staff 
(General Support staff category).  
5.  The recommended revisions to the dependency allowances presented below have been 
calculated based on the grade 8 midpoint salary, in keeping with the requirement that the basis of 
the allowances should be the average salary of the WTO. It should be noted that previously, the 
allowances were calculated based on the grade 9 midpoint salary. Using grade 8 as the basis for 
the calculation of the allowances has resulted in a smaller increase than would have been the case 
if the gr ade 9 level had been applied. This change to the reference grade is a consequence of the 
shifts in the grade structure away from the inverted pyramid.  
6.  It should be noted that the increases to the calculated WTO dependency allowances are mainly 
due to:  
a. The changes introduced in 2010 to the Canton of Geneva tax rebates available to 
married couples. The change was aimed at removing a taxation disincentive for couples 
in Geneva to get married.  
b. The increase of the child allowance given by the Canton of Geneva f rom CHF 200 to CHF 
300 per child per month.  
7.  The calculation of the reference amounts for the WTO dependency allowances was verified and 
confirmed by an expert in the Geneva Cantonal Tax Office.  
8.  Based on Annex 2 of the Staff Rules, t he amounts of the allow ances would normally be 
reviewed annually. Although changes to the Canton of Geneva tax rebates and child allowances in 
                                                
1 See Appendix 1 of this document.  WT/BFA/W/416/Rev.3  
 
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  2010 and 2011 would have called for the provisional application of  an adjustment of the allowances 
as of 2011 and 2012 , respectively , and  a corresponding request to the General Council for an 
approval of the adjustments , no such request was however  made. The WTO Staff Council regularly 
made enquiries from 2012 onward  about the changes in the Canton of Geneva  regulations. No 
formal response was provided to the Staff Council.  
9.  In 2016, following an adjustment of the dependency allowances for General Service staff in the 
United Nations Office of Geneva and following consultations with the WTO Staff Council, the 
allowances were recalculated for 2017 based on the methodology. At the proposal of the WTO 
Staff Council, the allowances were also recalculated to cover the maximum period for late 
payments allowed by the financial rules of the WTO.  
10.  With regard to paragraph 9 above, it is proposed that th e revised dependency allowances be 
applied as of 1 January 2016 and again adjusted for the period beginning 1 January 2017. The 
estimated cost of implementing the revised allowances is CHF 1,950,000 per year for 2016 and 
2017, respectively. The funds requi red to make the retroactive 2016 payment are available within 
the 2016 budget. The amount attributable to the change in dependency allowances for 2011 to 
2015 is approximately CHF 9 million.  
11.  The previous and revised rates are set out in Table 1 below:  
Table 1 Revised Dependency Allowances effective 1 January 2016 and 2017 respectively  
Allowance  Amount as at 
1 January 
2009 
(in CHF)  Amount as of 
1 January  2016 
(in CHF)  Amount as of 
1 January 2017  
(in CHF)  
(a) Spouse allowance (Staff Rule 106.14 (a))  7,788  10,212 10,188  
(b) Child allowance (Staff Rule 106.14 (b) and (c))  
(i) for dependent child  
(ii) for the first dependent child if the 
staff member is without spouse   
5,160  
12,240   
7,368  
15,888  
 7,368  
15,900  
 
(c) Secondary dependant’s allowance (Staff Rule 
106.14 (d) )  
2,712  3,798   
3,805  
 
12.  The Secretariat aims at rectifying the situation by seeking the General Council's approval for 
2016 and 2017 and closing the issue for the y ears 2011 t o 2015.  
13.  The Secretariat in 2012 decided not to seek the General Council's approva l for an increase of 
the allowances (total value approx. CHF 2 mio) because Members had just agreed to a salary 
freeze instead of a salary cut (total benefit to the staff CHF 3.5 mio). There was the view that this 
benefit to all staff could only be secured  if one did not overstretch the demand by adding the 
increased allowances.  
14.  The Secretariat is of the view that Staff Rule 106.10 (the "statute of limitation") protects the 
WTO against claims demanding payments for the years 2015 and back. It is also of th e view that 
annex 2 of the WTO Staff Rules does not immediately translate into a right by a staff member. A 
right that supports a claim comes into existence only after the General Council's approval. A legal 
opinion is provided in appendix 3.  
15.  The Secretari at further notes that Members have clearly expressed the view that the current 
methodology is unsatisfactory and that the Secretariat should put forward proposals for a new 
methodology, with a view to implementing it by 1 January 2018.  The increased paymen ts for 2016 
and 2017 should be the last on the basis of the current methodology. They should be considered 
as a one -off payment and will not have direct implications for the level of the allowances for the 
years 2018 and 2019.  WT/BFA/W/416/Rev.3  
 
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  16.  Considering all elements outl ined in this document, including the unprecedented change in the 
reference rate based on the current methodology in 2011 and 2012 and the adoption by the 
General Council of a salary freeze for staff hired prior to 2012, the  Committee  on Budget, Finance 
and Administration : 
(i) instruct s the Secretariat to put forward a proposal  for a new methodology for adjusting the 
dependency allowances, with a view to implementing this methodology by  1 January 2018 ; 
and 
(ii) recommends that, in view of  Staff Regulation 6.5 and Ann ex 2 of the WTO Staff Rules, the 
General Council:  
a. recognizes  that for the years 2011 to 2015 no provisional application of 
adjustments of the dependency allowances was made and no requests for 
adjustments of the dependency allowances for these years we re presented by 
the Secretariat ; 
b. in this context recalls that staff hired before 1 January 2012 have benefited 
from a salary freeze since 2012 ;  
c. approves adjustments to the dependency allowances as of 1 January 2016 and 
1 January 2017 respectively, as reflecte d in the table  below :  
Allowance  Amount as at 
1 January 
2009 
(in CHF)  Amount as of 
1 January  2016 
(in CHF)  Amount as of 
1 January 2017  
(in CHF)  
(a) Spouse allowance (Staff Rule 106.14 (a))  7,788  10,212  10,188  
(b) Child allowance (Staff Rule 106.14 (b) a nd (c))  
(i) for dependent child  
(ii) for the first dependent child if the 
staff member is without spouse   
5,160  
12,240   
7,368  
15,888  
 7,368  
15,900  
 
(c) Secondary dependant’s allowance (Staff Rule 
106.14 (d))   
2,712  3,798   
3,805  
 
and: 
 
d. hereby decides to close its  consideration of the adjustment of the dependency 
allowances for the years 2011 to 2017 . WT/BFA/W/416/Rev.3  
 
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APPENDIX 1  
 
WTO STAFF RULES  
ANNEX 2  
Dependency Allowance Rates  
(a) Spouse allowance (Staff Rule  106.14(a))  
SFR 7,788 per year.   This amount shall be adjusted accor ding to the difference in tax payable by a 
single person and a married person with no dependent children in the Canton of Geneva.  
(b) Child allowance  (Staff Rule  106.14(b) and (c))  
(i) SFR 5,160 per year.   This amount shall be adjusted by establishing the difference in tax payable by a 
single person and by a person with a dependent spouse and two dependent children;  the tax rebate for two 
children shall first be deducted by subtracting the tax rebate for a dependent spouse and the result then 
divided by two  to determine the tax rebate for a single dependent child;  to this shall be added the average 
Canton of Geneva social security payment for one dependent child.  
(ii) SFR 12,240 per year for the first child, if the staff member is without a spouse.   This amo unt shall 
be adjusted by calculating the difference in tax between a single person and married person with one 
dependent child;  to this shall be added the average Canton of Geneva social security payment for one child.  
(c) Secondary dependant's allowance  (Staff Rule 106.14(d))  
SFR 2,712 per year.  This amount shall be adjusted by calculating the difference in tax between a single 
person and a married person with one dependent child; from this shall be subtracted the difference in tax 
between a single person and a married person.  
Adjustments to the amount of the above allowances shall be provisionally applied pending their approval 
by the General Council under Staff Regulations 13.2  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 WT/BFA/W/416/Rev.3  
 
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  APPENDIX  2 
WTO STAFF RULES: 106 .13, DEFINITION OF D EPENDENCY & 106.14, DE PENDENCY ALLOWANCES  
Staff 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 f or grade 1 in Geneva.   
(b)        A "dependent child" shall be:  
(i)         a staff member's natural or legally adopted child, or   
(ii)        a staff member's stepchild, if residing with the staff member,   
under the age of eighteen years or, if the child is in full -time attendance at a school or university (or similar 
educational establishment), under the age of twenty -one years, for whom the staff member provides main and 
continuing support.   If a child over the age of eighteen years is physically or ment ally incapacitated for substantial 
gainful employment, either permanently or for a period expected to be of long duration, the requirements as to 
school attendance and age shall be waived.   
(c)       Staff members claiming a child as dependent must certify  that they provide main and continuing support.   
This certificate must be supported by documentary evidence satisfactory to the Director -General if the 
child:   
(i)         does not reside with the staff member because of divorce or legal separation of the staff member,   or (ii)  
is married.   
(d)        A secondary dependant shall be the mother, father, sister or brother for whom the staff member provides 
one half or more of the financial support, and in any case at least twice the amount of the dependency 
allowance, provided that the sister or brother fulfils the same age and school attendance requirements 
established for a dependent child.   If the sister or brother is physically or mentally incapacitated for 
substantial gainful employment, either permanentl y or for a period expected to be of long duration, the 
requirements as to school attendance and age shall be waived.  
Staff Rule 106.14 - Dependency allowances :   
(a)        A staff member whose spouse is recognized as a dependant under Staff Rule 106.13(a)  shall receive a 
spouse allowance, the amount and method of adjustment of which is set out in Annex 2 of the Staff 
Rules . 
(b)        A staff member whose child is recognized as a dependant under Staff Rule 106.13(b) shall receive a child 
allowance the amou nt and method of adjustment of which is set out in Annex 2 of the Staff Rules .  The 
allowance shall be reduced by the amount of any allowance received from any public authority by the 
staff member or  spouse in respect of the same child.   In no case shall t he sum of the two payments be 
less than the rate set out in Annex 2 of the Staff Rules . 
(c)      When a child of a staff member, recognized as dependent under Staff Rule  106.13(b), has been 
determined by the Director -General, on the basis of medical eviden ce, to be physically or mentally 
disabled either permanently or for a period expected to be of long duration, the allowance shall be 
double the child's allowance as set out in Annex 2 of the Staff Rules . 
(d)        A secondary dependant's allowance, the am ount and method of adjustment of which is set out in Annex 2 
of the Staff Rules , shall be paid in respect of not more than one dependent parent, sister or brother.  
(e)        Staff members shall notify the Director -General in writing of claims for dependen cy allowance and may 
be required to support such claims by satisfactory documentary evidence.   They shall report to the 
Director -General any change in the status of a dependant affecting the payment of the allowance.  
 WT/BFA/W/416/Rev.3  
 
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  APPENDIX  3 
LEGAL OPINION RELATI NG TO THE ADJUSTMENT OF TH E DEPENDENCY ALLOWAN CES: 
Annex 2 to the WTO Staff Rules mandates the Director -General to adjust the amount of the 
dependency allowances under Staff Rule 106.14, using a methodology based on the Swiss fiscal 
treatment of households with a dependent spouse and/or children).2 
The calculation of these adjustments on the basis of the methodology spelled out in Annex 2 and 
their provisional application are mandatory (Annex 2, paragraphs (b) (i) and (ii): "this  amount 
shall be adjusted…"). But such adjustments become definitive only upon a decision of the General 
Council to approve them (Annex 2, last sentence: "Adjustments to the amount of the above 
allowances shall be provisionally applied pending their approval by the General Council…".  
The a uthority of the General Council to approve such adjustments also carries the authority to 
reject them, partly or fully.  
The right to dependency allowance is an "acquired right" of the staff, i.e. a benefit that the ILO 
Administrative Tribunal (ILOAT) would  consider intangible.  
In contrast, the adjustment of dependency allowances and the methodology used for such 
adjustment are not "acquired rights". These are staff rights binding on the WTO only for as long as 
they are not revoked. They can be withdrawn or modified if the interest of the Organization so 
requires, but only for the future. For instance, any new adjustment methodology could apply only 
from 2018 onward.  
Between 2011 and 2017, no adjustment was made to the rate of the dependency allowances even 
though the application of the methodology in Annex 2 would have justified such adjustments. It 
may be argued that this represents a breach of Annex 2 which may be challenged by individual 
staff members.  
However, one must differentiate in this regard between  the period 2011 -2015 and the period 
2016-2017. Staff members have a right under Staff Rule 106.10 to claim the payment of an 
allowance within one year following the year in which the initial payment would have fallen due (in 
this case, 2016). Therefore, a  failure to amend the rates in Annex 2 for 2016 and 2017 exposes 
the WTO to potentially successful staff appeals. This is less likely for the period 2011 -2015, 
inter-alia because of the above -mentioned time -limit imposed by Staff Rule 106.10 on payment 
claims. 
 
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2 The reference to Swiss fiscal practice is only intended to provide a logical basis for the adjustment. It 
bears no connection to any fiscal treatment actually applicable to WTO officials.