RESTRICTED  
  
WT/BFA/W/448  
 
16 April 2018 
(18-2265) Page: 1/2 
Committee on Budget, Finance and Administration   
 
 
DEPENDENCY ALL OWANCES – PROPOSED AMENDMENT T O ANNEX 2  
OF THE STAFF RULES  
1.1.  Following the amendment of the amounts of the dependency allowances  applicable for 2018,  
the Director -General has reviewed the methodology for adjusting the dependency allowance rates, 
set out in Annex 2 of the Staff Rules.  
1.2.  Having considered the financial situation of the Organization and having completed 
consultations in accordance with Staff Regulation 2.4, the Director -General proposes to replace the 
current methodology with on e that is detached from the taxation system in the Canton of Geneva.  
1.3.  With the proposed methodology, the dependency allowances would be adjusted, upwards or 
downwards, every three years based on the cumulative movement of the official WTO salary scale, 
subject to a 2% threshold being reached.  
1.4.  The first such adjustment  would take place on 1 January 2021 based on the cumulative 
average grade weighted movement of the WTO salary scale between 2018 and 2020.  
1.5.  If the threshold of 2% is not reached in any given thr ee-year period, no adjustment would be 
made and the dependency allowances would be reviewed after a further three -year period and 
adjusted, subject to reaching the 2% threshold, based on the cumulative movement of the salary 
scale during the period since t he last periodic adjustment.  
1.6.  In accordance with Staff Regulation 13.2, and given that the amendments will have financial 
consequences, the proposed amendment requires approval by the General Council before entry 
into force.  
1.7.  Therefore, t he Committee recomme nds that the General Council approve the 
amendment of Annex 2 of the WTO Staff Rules , as set out  in Appendix  1 below . 
 
_____________  
  WT/BFA/W/448  
 
- 2 - 
 
  APPENDIX  1: PROPOSED AMENDMEN T TO ANNEX 2 OF THE WTO STAFF RULES  
WTO STAFF RULES  
ANNEX 2  
Dependency Allowance Rates  
(applicable as of 1 January 2018)  
and method of adjustment  
(a) Spouse allowance (Staff Rule  106.14(a))  
CHF 7,788 per year.    
(b) Child allowance  (Staff Rule  106.14(b) and (c))  
(i) CHF 5,160 per year.  
(ii) CHF 12,240 per year for the first child, if the sta ff member is without a spouse.  
(c) Secondary dependant's allowance  (Staff Rule 106.14(d))  
CHF 2,712 per year.   
The dependency allowances shall be adjusted periodically as per the following mechanism:  
Subject  to a 2% threshold being reached, the allowances shall be adjusted, upwards or 
downwards, every three years based on the cumulative movement of the official WTO salary scale.  
The first such adjustment shall take place on 1 January 2021 based on the cumulat ive average 
grade weighted movement of the WTO salary scale between 2018 and 2020. If the threshold of 
2% is not reached in any given three -year period, no adjustment shall be made and the 
dependency allowances shall be reviewed after a further three -year period and adjusted, subject 
to reaching the 2% threshold, based on the cumulative movement of the salary scale during the 
period since the last periodic adjustment.  
An annual report will be provided to the Committee on Budget, Finance and Administration, 
indicating the cumulative adjustment of the WTO salary scale, regardless of whether or not an 
adjustment is indicated as per the method of adjustment of dependency allowance rates.  
 
 
__________