RESTRICTED  
  
WT/BFA/W/416  
 
9 May 2017  
(17-2215) Page: 1/5 
Committee on Budget, Finance and Ad ministration  
REVIEW OF THE ADJUSTMENT OF THE WT O DEPENDENCY ALLOWAN CES 
1.  In accordance with WTO Staff Regulation 6.5, "s taff members shall be entitled to a dependency 
allowance in respect of a primary or secondary dependant" . The methodology for establishing 
these allowa nces 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 ap proval in document 
WT/BFA/75 , and approved by the G eneral 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 amount s of the 
WTO dependency allowances are derived based on the level of  tax rebates available in the Canton 
of Gen eva 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 o ut 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 logic 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 Su pport 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 WT O. It should be noted that p reviously, 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 grade 9 lev el 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 from CHF 2 00 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.  The amounts of the allowances, set out  in Annex 2 of the Staff Rules , would  normally be 
reviewed  annually.  It should be noted that a lthough the changes to the Canton of Geneva tax 
rebates and child allowances would have required an adjustment of the allowances as of 2011 and 
2012 respectively, no adjustment has been made to the allowances since 2009 . The WTO Staff 
Council made enquiries , initially in 2012, about the changes in the Canton of Geneva  of which they 
were aware and the impact these would have on the calculation of the allowances. No formal 
response was provided to the Staff Council . They did not pursue the matter further at the time.   
                                                
1 See Appendix 1 of this document . WT/BFA/W/416  
 
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  9.  In 2016, following an adjustment of the dependency allowances for General Service staff in the 
United Nations Office of Geneva and following consultati ons with the WTO Staff Council, the 
allowances were recalculated  for 2017 based on the methodology . At the request of the WTO Staff 
Council , the allowances were also recalculated for 2016 so as 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 the 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 ye ar for 2016 and 
2017, respectively . The funds required 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.  In addition, i t is proposed that a review of the current 
methodology be carried out, in consultation with the Committee on Budget, Finance and 
Administration.  
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.  Bearing in mind that  changes to the Geneva tax rebates and child allowances would have 
impacted the reference  for the amounts of the dependency allowances as of 2011 and 2012 
respectively, a  legal opinion relating to the adjustment of the allowances for the period 2011 to 
2017 is set out in Appendix 3 to this document.  
 
13.  The Secretariat will, henceforth, provide an annual report to the Committee on Budget, 
Administration and Finance on the status of the reference rates and make an express request for 
the adjustment of the depen dency allowances, if necessary . 
 
14.  Therefore , the Committee, bearing in mind that the methodology for adjusting 
dependency allowances was approved by the General Council in December, 2004 
(WT/GC/M/90, paragraph 158), recommends that the General Council appro ve, under 
Staff Regulation 13.2, the following proposal : 
 
Annex 2 to the WTO Staff Rules mandates the Organization to adjust the amount of the 
dependency allowances under Staff Rule 106.14. The General Council takes note that no 
adjustment was made since 2009. The General Council approves adjustments for 2016 
and 2017 , only .    
 
 
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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 ac cording 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 t he 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 amount 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 allowanc e (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 pers on 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  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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  APPENDIX  2 
WTO STAFF RULES: 106 .13, DEFINITION OF DEPENDENCY & 106.14,  DEPENDENCY ALLOWANCE S 
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 rang e for 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 chi ld 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 m entally 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 cert ify 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 t he 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 dependenc y 
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 permane ntly 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 a mount 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 shal l the 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 evi dence, 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  amount 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 depen dency 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.  
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  APPENDIX  3 
LEGAL OPINION RELATI NG TO THE ADJUSTMENT OF  THE DEPENDENCY ALLOW ANCES:  
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 wi th a dependent spouse and/or child ren).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 authority of the General Council to approve such adjustments also carries the authority to 
reject then, 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 withd rawn 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 allowanc es 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 rega rd 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). Th erefore, 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 p ayment 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.