WRITTEN QUESTION E-0366/99

by Esko Seppänen (GUE/NGL) to the Commission

(1 March 1999)

Subject: Commissioners' remuneration

As conflicting reports on the matter have appeared in the European press, I should like to know on what basis Commissioners' remuneration and pensions are determined, to what severance pay they are entitled and how the general terms of employment of EU staff are applied to them. What turnover tax relief are they entitled to, and how do these benefits differ from those granted to other EU staff?

Answer given by Mr Liikanen on behalf of the Commission

(15 April 1999)

The remuneration and allowances of the members of the Commission are tied to the remuneration and allowances of the officials of the European institutions, as laid down in the staff regulations, including Council Regulation No 2762/98 of 17 December 1998 adjusting with retroactive effect from 1st July 1998 the remuneration and pensions of officials and other servants of the European Communities and the weightings applied thereto(1).

The remuneration of the Members of the Commission comprises the following elements:

- a basic salary, equal to 112,5 % of the salary of an official of grade of A1/6. For the Vice-Presidents of the Commission and for the President of the Commission, the basic salary is equal to 125 % and 138 % of the salary of an official with a grade A1/6, respectively (the basic salary of the members of the Commission is subject to a progressive tax, the maximum marginal tax rate being 45 % and a temporary contribution of 5,83 % of a part of the salary. The same taxes are paid by the officials of the institutions. In addition, a contribution of 1,8 % of the salary is deducted for sickness and injury insurance);

- residence allowance of 15 % of the basic salary;

- a fixed monthly representation allowance of 607,71 euro;

- other allowances for the members of the Commission are the same as for officials of the institutions (except for expatriation, replaced by the residence allowance) as stipulated in the staff regulations.

Members of the Commission are not entitled to any severance grant. For three years after they leave office, members receive a transitional allowance calculated as a percentage of basic salary varying with the number of years they have served. The transitional allowance is subject to Community tax.

Upon leaving office Members are entitled to a life pension payable when they reach the age of 65. It is calculated at the rate of 4,5 % of basic salary for every full year in office. It may not exceed 70 % of the basic salary last received. The pension is subject to Community tax.

No special regulations are provided about "normal working conditions" applicable to the members of the Commission.

Belgium treats members of the Commission as diplomats. They therefore benefit from the same advantages accorded by Belgium to diplomats of Member States accredited to the country, in particular as regards the purchase of goods for personal use. The Commission has asked itself whether the tax exemptions (VAT and excise duties) granted to Member States' diplomats serving in the Union and persons treated in the same way, such as Members of the European Commission, are compatible with the Union's progress towards integration. The Commission has decided to make an in-depth evaluation of the situation with a view to identifying what legislative initiatives would be appropriate. The Commission would also refer the Honourable Member to its answer to Written Question E-3878/98 by Mr De Coene(2).

Officials and other agents (temporary or auxiliary) do not have diplomatic status. However, those under contract for at least a year, can, on first taking up their duties in Belgium in one of the institutions, benefit from exemption from VAT on the purchase of certain goods for personal use, for a period of twelve consecutive months and within two years, with effect from their entry into service.

(1) OJ L 346, 22.12.1998.

(2) OJ C 325, 12.11.1999.