ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(81)345
Vol.1981/0110

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(81)345final
•Brussels/2ndJuly1981
PROPOSAL FORADECISION
amendingthemethodofadjustingthesalariesofofficials
andotherservantsoftheCommunities
(presented bytheCommissiontotheCouncil)
V­
COM(81)345finals

DECISION AMENDINGIKEMETHODOPADJUSTING THE
SALARIESOFOFFICIALS ANDOTHERSERVANTSOFTHECOMMUNITIES
THE.COUNCILOFTHEEUROPEANCOMMUNITIES ,
HavingregardtotheStaffRegulations ofOfficialsandtheConditions
ofEmploymentofOtherServants,andinparticularArticles64and65
oftheStaffRegulations andArticles20,63and64oftheConditions
ofEmployment,
HavingregardtotheproposalfromtheCommission,
Afterconsultation withthetradeunionsandstaffassociations
representing thestaffoftheCommunities ;'
Whereasitisnecessarytolaydownthedetailedrulesaccordingto
which'theCouncil,actingonaproposalfromtheCommission,applies
Article65oftheStaffRegulations ,inordertomaintainharmonious
relations "betweentheCommunityinstitutions andtheirofficialsand
otherstaff:
1
Whereas,havingregardto^heprincipleofparalleldevelopment ,
salariesshould "beadjustedonthe"basisoftheresults"expressed "by
thejointindexandthespecificindicatorsshowingthetrendof
nationalpublicservicesalaries;whereas,however,toavoiddistortions ,
thecatching^-up elementinpublicservicesalariesincertainless
prosperous .MemberStatesshould "beexcluded;whereas,tothatend,
the"onlyspecificindicatorsto"beconsideredintheannualreviews
from1981to1990should"bethoserelatingtotrendsinthesixMember
Stateswherepercapitapublicservicesalariesarethehighest;
Whereasitisalsonecessarytolaydowndetailedrulesaccordingto
whichtheCounciltakesaccountofappreciableincreasesinthecostof
livingforthepurposesofadjustingtheweightingspursuantto-/
Article65(2); ,

Whereas,however,ifthepurchasingpowerforecastforanyreference
periodproducesanegativefigure,the'relevantinterimadjustments
shouldbereducedaccordingly ;
Whereas,inviewofthespecificdifficulties oftheeconomicandsocial
situation,assessedinthelightofobjectivedatasuppliedbythe.
Commission ,aspecialcrisislevyshouldbechargedonsalaries,pensions
andtermination~of~service allowancesatthesametimeasadjustments
aremadeunderthisMethodandsolongasthosedifficulties persist;
whereastothatendtheCommission shouldsubmittotheCouncila
proposalforamendingcertainprovisionsoftheStaffRegulations and
CEOSforthepurposeofintroducingthelevyanddeterminingrulesfor
itsapplicationinrelationtoadjustments madeinaccordancewiththis
Method, ,
HASDECIDEDASFOLLOWS:-
Article 1
TheMethodforadjustingtheremuneration of.officialsandother
servantsoftheEuropeanCommunities adoptedon26June1976isreplaced
bythetextannexedtothisDecision.
ThisMethodshallapplyfrom1July1981andshalltakeaccount,onthat
date,ofthereferenceperiodbeginningon1July1980.
I
%Article2
TnisDecisionshalltakeeffectatthesametimeastheentryintoforce
oftheprovisionsoftheStaffRegulationsestablishing aspecialcrisis
levy,exceptthattheprovisionsgoverninginterimadjustmentofsalaries
shallhaveimmediateeffectfromthedaywhenthisDecisionispublished.
DoneatBrussels, FortheCouncil
ThePresident

I.BASICPRINCIPLES
Theadjustmentofsalaries "based,onArticle65oftheStaffRegulations
formspartofapolicywhichaimstoensurethattheremuneration of
officialsandotherservantsdevelopsinlinewiththeaverageincrease
intheremuneration ofthevariouscategoriesofcivilservantsinthe
MemberStates.
Foraperiodoftenyearsittakesthefollowingfactors .into
consideration :
I
(i)thespecificindicator(thechangeinpurchasingpowerofnational
,civilservants);
(ii)thejointcost-of-livingindexashitherto;
(iii)thestatisticsrequiredforinterimadjustments (Article65(2)),
whichaimtoensureequivalenceofpurchasingpowerforall
Europeanofficials,regardlessoftheirplaceofemployment ;
(iv)thespecificdifficultiesoftheeconomicandsocialsituation,
consideredinthelightofobjectivedatasuppliedbythe
Commission !
(v)recruitmentneeds.,
*•
II.DETAIL'rulesforapplication
1.'AKKUALSALARYREVIEW . '
(Article65(1)oftheStaffRegulation)
EachSeptembertheCommissionshallsubmitareportonthefollowing
factors: '
1.1Cost-of-livingtrends .
Thejointindex,designedtomeasurecost–of–livingtrendsineachof
theMemberStates,shallcontinuetobeused-inaccordancewiththe
procedureappliedhitherto.

-4-
Everyfiveyears,-theStatisticalOfficeoftheEuropeanCommunities
shallverifywhethertheratios "betweenweightingsaccuratelyreflect
purchasingpowerequivalents betweensalariespaidtostaffserving
inthecapitalsoftheMemberStates.
'Asimilarchecksha.ll"bemadeforotherplacesofemploymentwhen
objectivefactorssuggestthatthereisadangerofconsiderable
distortions comparedtodataforthecapitalofthecountryconcerned.
1.2Changesinrealincomeofnationalcivilservices-Specific
indicators
Theaimistomeasurethepercentagechangeinpurchasingpowerin
nationalcivilservices*
Forthispurpose:
(a)TheStatisticalOfficeoftheEuropeanCommunitiesshallcalculate
specificindicatorsforthechangesinrealsalariesandworkinghours
inthecivilservicesoftheMemberStatesduringtheprecedingreference
period,onthebasisofinformationsuppliedbythenationalauthorities .
Thereferenceperiodshallbethetwelvemonthspreceding 1Julyofthe
yearinwhichthereviewiscarriedout.
TheStatisticalOfficeshallestablishtheaverageoftheindicators
κ
foralltheMemberStatesandforthesixMemberStateswhichhavethe
highestcivilservicepercapitacompensation.'''
Attheannualreviewsfor1981to1990onlythesecondaveragewillbe
considered.Whenthe1991reviewtakesplacet3^eCouncilshalldecide,
onaproposalfromtheCommission,whetherthis!'methodofcalculation
istocontinue.: !!_
*
Compensation ofemployeesperwageandsalaryearnerinthepublic
administration sector,atcurrentpricesandpurchasingpowerparities,
expressedinpurchasingpowerstandards,forthelatentyearfor
whichstatisticsareavailable.
(SeeNationalAccountsESA–Aggregates1981,page163).

These indicators shall take two forms :
(a)anindicator foreach ofthe -four categories A,B,CandD;
(b)anaverage indicator weighted toreflect thenumbers ofnational civil
servants inthese four categories . *
Each 'ofthese indicators shall becalculated inreal gross andreal net terms ,
When thespecific indicators'are converted from gross tonet ,account shall
betaken ofallnational taxation factors which reduce the amount oftaxable
income ." .
Attherequest oftheStatistical Office ,national authorities shall supply
anyadditional information which itmayconsider necessary .
(b)IftheStatistical Office finds statistical anomalies intheinformation ,
obtained orfinds itimpossible tocalculate indicators which measure with
statistical accuracy thechanges inthereal incomes ofcivil servants in
agiven Member State ,itshall report totheCommission andprovide the
Commission with material enabling ittodraw upaproposal .
'(c)TheStatistical Office shall also assess statistically thedifference
between thegross andnetrates ofthespecific indicators onthebasis of
national budgetary data andnational accounts .
(d)Todetermine arrangements forimplementing themethod described above
andtominimize therisk ofdisputes regarding thedata forthecurrent
financial year ,theStatistical Office shall inMar (cheach year convene
aworking party composed ofexperts from national .statistical institutes .
■1
Theworking party :
.shall examine allthefactors necessary foranaccurate measurement ofthe
development inpurchasing power innational civil services andthe

practicalproblemsinvolvedincalculatingthenetindicators.This
willentailcompilingalistoftaxesandcompulsorycontributions and
alsoofflat-rateorindividual'deductions andabatementswhichplaya
partindetermining thebasictaxableamount;
shallsupplytheinformationrequiredtoproduceaforecastofchanges
inpurchasing powerinnationalcivilservicesoverthereferenceperiod*
*
(e)Besidesthespecificindicators,theStatisticalOfficeshallsubmit
controlindicatorsintheformofdataonrealpercapitaemolumentsin
publicauthoritiesgenerallyandincentraladministrations ,calculatedin
accordance withnationalaccountsdefinitions .
Itsreportonthespecificindicatorsshallbeaccompanied .byexplanations
ofthedifferences betweenthemandthechangesinthecontrolindicators .
TheStatistical Officeshallmakeappropriate correctionsifnecessary.
1.3TheCouncil,actingonaproposalfromtheCommission ,shalltakea
decisionby1Decemberofeachyearadjustingremuneration onthebasisof
thecriteriaat1aboveandactivatingaportionofthelevyprovidedfor
at2below.
2.^THESPECIFICDIPFICLTTIES OFTHEECONOMICMBSOCIALSITUATION
~2.1Thespecificdifficulties oftheeconomicandsocialsituation,assessed
onthebasisofobjectivedatasuppliedbytheCommissionshowingthegap
between: • ,
•thetrendinrealpercapitawagesandsalariesandapparentproductivity
perpersonemployed; , ' '
.thetrendinrealpercapitawagesandsalariesandproductivity available
•1-Ifordistribution (productivitycorrectedforthetermsoftrade);

-7-
.and.-thetrend,inrealpercapitawagesand.salariesandproductivity
permemberoftheactivepopulation,i.e.includingtheunemployed,
shallduringthefirstfiveyearsbereflectedbyacrisislevy.The
rulesforapplyingthislevyshallbelaiddowninnewprovisionsof
theStaffRegulations andtheConditionsofEmploymentofOtherServants*.
2.2Ifthereisaseriousdeterioration intheeconomicandsocial
situation,theCommission,actingonthebasisoftheobjectivedata
referredtoat2.1above,shallpresentappropriateproposalsfora"
Councildecision.'
•*
3.RECRUITfffiNT NEEDS
f
(Article65(1)oftheStaffRegulations )
* '
*
Ifrecruitment needssorequire,theCommissionshallpresentappropriate
proposalstotheCouncil.' 1
4.PROCEDURE FORDECIDINGONADJUSTMENTS TOREMUNERATION
(a)TheCouncilshalldetermineremuneration adjustmentsinnetterms.Such
adjustments maybeexpressedasanidentical,across-the-boardpercentage
orinanon-proportional manner.
Theadjustment maythereforebeexpressedas: ■"-
apercentage ;
and/or.aspecificamount.
(b)Thenetrateofadjustmentthusfixedandtheweightingsapplicable
toofficialsinBelgiumandLuxembourgshallbeincorporated ,*inaccordance
withthefollowingmethod.,inthesalaryscalesgiveninArticle66ofthe
StaffRegulations andinArticles20and63oftheConditionsofEmployment
ofOtherServants: 1.- -
.thenetremuneration withaweightingof100attachingtoeachstep
The'relevantproposalwillbeforwardedseparately,inaccordancewiththe
.usualprocedure.

ofeachgradeofofficialandtoeach,classineverygroupofother
servants;shallbeincreasedbytheaboveweightingandbythenet
rateofadjustmentreferredtoat(b)above,whetheritisgivenas
apercentageorasaspecificamount; 1
the"neV;scaleofbasicsalariesingrosstermsshallbsdrawnupbycalculating
foreachsteporclassthegrossamountwhich,afterdeductionoftax
(havingregardto(c)bfelow)andcompulsorydeductions,givesthenew■
net'amountreferredtoabove;
thisconversionofnetamountsintogross'amounts -shallbebasedonthe ■
situationofanunmarriedofficialwhodoesnotreceivethevariousallowances';
theweightingforBelgiumandLuxembourgshallbe.fixedat100?the
weightingsforothercountriesofemploymentshallbeadjustedonthebasis
of.theratiobetweenthecost-of-livingindex,numbersinthesecountries
andthecost-of-livingindexnumberinBrusselsandLuxembourg -,-
(o)ForthepurposeofapplyingRegulation(EEC,'Euratom,ECSC)No260/63
concerningCommunitytaxtoremunerations paidin'accordancewiththescale
ofbasicsalariesworkedoutasprovidedbythefirstindent,theamounts
inArticle4oftheRegulationshallbemultipliedbyafactorcomposedof:
theweightingapplicablebeforeincorporation totheremunerations of
officialsinBelgiumandLuxembourg ;.
thenetadjustmentinremunerations referredto^t(b)above;
!
and/or,iftheadjustmentismadeintheformofaspecificamount,the
equivalentaveragepercentage. . •,
Eachtimethescaleofbasicsalariesisadjusted,thenewmultiplier
shallbeobtainedbymultiplyingtheformermultiplier bythefigures
forthenewreferenceperiod.

(d)TheCouncildecisionshall"takeeffecton1Julyoftheyearinwhich
theendofthereferenceperiodusedfor.thepayreviewfalls.
5..IKTERIMAJJUSTKENT OFREKUKERATION
(Article65(2)oftheStaffRegulations)'
InterimadjustmentsofremunerationunderArticle65(2)shallbedecidedonin
theeventofasubstantial changeinthecostofliving,providedacertain
thresholdisreached,onthebasisofaforecastofchangesinpurchasing
powerduringthecurrentyear.
InMarcheachyeartheStatisticalOfficeshallmakeaforecastofchanges
inpurchasing powerovertheperiodconcernedonthebasisoftheinformation
suppliedatthemeetingprovidedforatII,1.2(d)above. .-
Ifthisforecastgivesanegativepercentage,halftheamountshallbe
deductedfrom.theadjustmenttobemade.Afinaladjustmentshallbemade
attheannualreview.
Thethresholdshallbe40fooftheaveragechangeinthecostoflivingin
1theCommunityoverthe.six–monthreferenceperiod .followingthelastadjustment
ofremuneration .However,toprecludeexcessivelyhighorlow,andtherefore
unacceptable ,thresholds,upperandlowerlimitsof4$and2^respectively
. . - \.. .shallbefixed..-
Thisthresholdshallbeappliedinaccordancewithihefollowingprocedure:
TheCommission'sproposalforapplicationofArticle65(2)inrespectofthe
secondhalfofthepreviousyearshallnormallybesenttotheCounoilno
laterthanthesecondhalfofApril.
'»_1.1.•J«1_i1.....«Aspublished "bytheStatisticalOffice(Monthlyupdatingofconsumerprices–
GeneralstatisticsandNationalAccountsSOEC).

-10
IftheabovethresholdisreachedorexceededinBelgium,theweightings
forallplacesofemploymentshallheadjustedon1Januarycfthecurrent
year*bytherateofinflationineachofthen,subjecttoareductionwhich
maybemadeproportionally toalltheweightingsshouldtheforecastshow
anegativemovementinpurchasing power.,
Inadditiontothissix-monthly adjustment,additionaladjustmentsshall
hemade"incountrieswithahighrateofinflation® Fordoublethe
threshold,onehalfoxtherateofadjustmentshallbegrantedandfor
threetimesthethreshold,onethird;ineachcasethedeductionprovided
forinthethirdparagraphofthissectionshallbemadefromtherate
ofadjustment.The.effectivedatesshallbeeitherthebeginningof
thethirdmonthinthereferenceperiodorthebeginningofthesecond
andthefourthmonthsfollowingthestartofthereferenceperiod.This
shallbecheckedwhentheCommission makesitsproposalinApriland
recheckedattheannualsalaryreview.
ν
Ifthethresholdisnotreachedattheprovisionalseats(Brusselsand
Luxembourg),theweightingsofthecountrieswhereinflationhasexceeded .
thethresholdshallbeadjustedinlinewiththeirrateofinflation.
Theinterimadjustments describedaboveshallbedeductedfromtheannual
salaryadjustment.
IfthemeasurestakenunderArticle65(2)leadtbadropattheendofa
yearinnominalsalariesinsomeplacesofemployment,salariesshallremain
attheircurrentlevelandthefullorresidualreductionshallbeeffected
atthenextadjustment. •
I
WherenojointindicesareavailableforthepurposesofapplyingArticle65(2)
oftheStaffRegulations ,nationalconsumerpriceindicesshallbeused;
ontheoccasionoftheannualreviewthejointindexshallbeused.

-11-
III.FUTALPROVISIONS MPREVIEWCLAUSE
1.ThesalaryadjustmentmethodadoptedbythisDecisionshallapply
for10yearsfrom1July1981.
2.Thespecialcrisislevyshallapplyfromthedatelaiddowninthe
CouncilRegulationinstitutingitandshallinparticular "beleviedon
arrearsof-salarydueundertheannualadjustmentofremuneration for
1981,inrespectofperiodsofserviceafter1Julyofthatyear.
3.Sixmonths "beforetheendofthefifthyear,theCommissionshall
presentareporttotheCouncilontheoperationoftheMethod,together
withanappropriateproposal,notablyasregardstheprocedurefor
reflectingthespecificdifficulties oftheeconomicandsocial
situationfromthesixthyearonwards.UnlesstheCouncildecides
otherwise,theimplementing rulesatII.1shallcontinuetoapply.
4.OnthebasisofaCommissionproposal,theCouncilshallexamine
theresultsofapplyingtheMethoddescribedaboveatthe1991review,
withaneyetodecidingonimprovements whichmightbemadeand
correctinganydistortions whichhavearisen.