Proposal for a Council Regulation (ECSC, EC, Euratom) correcting with effect from 1 July 2002 the remuneration and pensions of officials and other servants of the European Communities
Date: 2003-10-06
Institutions: European Commission
Subjects: European official, pension scheme, servant (EU), wage determination

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 06.10.2003
COM(2003)580 final

Proposal for a

COUNCIL REGULATION (ECSC, EC, Euratom)

correcting with effect from 1 July 2002 the remuneration and pensions of
officials and other servants of the European Communities

(presented by the Commission)

1

EXPLANATORY MEMORANDUM

1.

PREAMBLE

Article 65  of  the  Staff  Regulations  and  Article 1  of  Annex XI  to  the  Staff
Regulations  require  the  Council  to  undertake  an  annual  review  of  the
remuneration of officials and other servants of the Communities on the basis
of a report from the Commission.

This  report  establishes  the  various  parameters  which  have  to  be  taken  into
account  for  the  annual  review,  in  particular  the  cost–of–living  trend  for
Brussels  (composite  index  comprising  the  joint  index  and  the  Brussels
consumer  price  index),  the  trend  in  the  purchasing  power  of  civil  service
remuneration  in  the  Member States  (specific  indicator),  and  the  economic
parities used to calculate weightings.

The  information  supplied  by  France  for  the  calculation  of  the  annual
adjustment  of  remuneration  for  2002  did  not  correctly  take  account  of  the
salary  increases  of  French  civil  servants.  The  specific  indicator  and  the
adjustment for 2002 should therefore be corrected.

2.

TREND  IN  PURCHASING  POWER  OF  THE  REMUNERATION  OF
NATIONAL CIVIL SERVANTS

Specific indicator

Eurostat has worked out the trend in civil service remuneration on the basis
of information provided by the Member States1 for the twelve month period
up to 1.7.2002, for each category of official in each Member State.

The  revised  specific  indicator  measuring  the  trend  in  the  remuneration  of
national  civil  servants  in  central  governments  in  net  real  terms  for  the
twelve-month period up to 1.7.2002 is 1,7 % (0,7% prior to correction).

The figures for each Member State are shown in Table A below:

1

Including the new information for France.

2

                                                
TAB LE A
SPECIFIC IN D ICATOR
R e al change s  in the  ne t re mune ration of ce ntral gove rnme nt s taff
1.7.2001 - 1.7.2002

N ominal changes in Changes in consumer R e al chang e s  in the

Country

the net remuneration

price indices

ne t re mune ratio n

W eighting

(% )

3,4  

1,5  

1,3  

7,8  

-1,5  

4,6  

1,5  

-0,8  

7,5  

-1,5  

-1,1  

-1,7  

2,9  

0,3  

2,5  

1,7

(% )

3,80

1,78

27,84

2,05

4,36

22,91

0,81

15,83

0,26

3,01

2,02

2,64

0,73

1,46

10,49

100,0

(% )

4,3

3,7

2,1

11,4

1,9

6,1

6,0

1,4

9,3

1,9

0,6

1,6

4,0

2,3

3,5

Belgium

Denmark

Germany

Greece

Spain

France

Irlande

Italy

Luxembourg

N etherlands

Austria

Portugal

Finland

Sweden

United K ingdom

EUR 15

(% )

0,9

2,2

0,8

3,3

3,4

1,4

4,4

2,2

1,7

3,4

1,7

3,4

1,1

2,0

1,0

3

COST–OF–LIVING TREND FOR BRUSSELS

The  joint  index  measuring  the  rise  in  the  cost  of  living  in  Brussels  for  the
twelve  months  up  to  1.7.2002  calculated  by  Eurostat  is  101,4.  The  Belgian
index (Brussels capital component) is 100,8 for the same period.

4.

ADJUSTMENTS PROPOSED

An  adjustment  from  1.7.2002  is  required  to  take  account  of  cost–of–living
increases in the places of employment during the reference period.

Since the Brussels capital component of the Belgian index has risen by 0,8 %
and the joint index by 1,4 % over the reference period of 1.7.2001– 1.7.2002,
the  cost–of–living  weighting  to  be  incorporated  in  the  salary  tables  for
Brussels is 1,3 % (25 % x 0,8 % + 75 % x 1,4 %) in line with Article 3(2) of
Annex XI to the Staff Regulations.

The specific indicator  measuring the trend  in  the  purchasing  power  of  civil
servants in the central governments in the Member States recorded during the
period 1.7.2001 to 1.7.2002 is 1,7 % (0,7% prior to correction).

This gives a net increase of 3,0 % (2,0% prior to correction) in remuneration,
which means a correction of 1% with effect from 1.7.2002.
An initial adjustment was agreed by the Council on 16 December 20022. The
arrears  to  be  paid  under  the  correction  will  therefore  take  account  of  the
payments already made.

2

OJ L 347, 20.12.2002, p. 1.

4

                                                
Proposal for a

COUNCIL REGULATION (ECSC, EC, Euratom)

correcting with effect from 1 July 2002 the remuneration and pensions of
officials and other servants of the European Communities

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community,

Having  regard  to  the  Protocol  on  the  Privileges  and  Immunities  of  the  European
Communities, and in particular Article 13 thereof,

Having regard to the Staff Regulations of Officials and the Conditions of Employment
of  Other  Servants  of  the  European  Communities  laid  down  by  Council  Regulation
(EEC, Euratom, ECSC) No 259/68,3 as last amended by Regulation (Euratom, ECSC,
EC) No …4, and in particular Articles 63, 64, 65, 65a and 82 of the Staff Regulations,
Annex XI to the Staff Regulations, and the first paragraph of Article 20 and Article 64
of the Conditions of Employment,

Having regard to the proposal from the Commission,

Whereas:

(1)

(2)

(3)

Council Regulation (EC, ECSC, Euratom) No 2265/20025 was unable to take
correct account of this trend in the net remuneration of French civil servants.

The figures showing this trend are now available and show that an additional
adjustment should be carried out.

The  amounts  in  that  Regulation  adjusting  the  remuneration  and  pensions  of
officials and other servants of the European Communities should therefore be
corrected under the 2002 annual review,

HAS ADOPTED THIS REGULATION:

With effect from 1 July 2002:

Article 1

3

4

5

OJ L 56, 4.3.1968, p.1.
OJ …
OJ L 347, 20.12.2002, p. 1.

5

                                                
a)

the  table  of  basic  monthly  salaries  in  Article 66  of  the  Staff Regulations  is
replaced by the following:

GR A D E

STEP

A 1
A 2
A 3  / LA 3
A 4  / LA 4
A 5  / LA 5
A 6  / LA 6
A 7  / LA 7
A 8  / LA 8
B 1
B 2
B 3
B 4
B 5
C 1
C 2
C 3
C 4
C 5
D 1
D 2
D 3
D 4

1

2

3

4

5

6

7

8

12.298,93 12.952,26 13.605,59 14.258,92 14.912,25 15.565,58
10.914,29 11.537,72 12.161,15 12.784,58 13.408,01 14.031,44

9.039,01
7.593,73
6.260,65
5.410,37
4.657,24
4.118,91
5.410,37
4.687,67
3.931,98
3.400,81
3.039,88
3.468,69
3.017,03
2.814,32
2.542,96
2.344,76
2.649,93
2.416,23
2.248,87
2.120,38

6.591,17
5.566,75
4.662,94
4.034,73

8.445,01
7.002,45
6.000,77
5.120,72

8.870,65
7.373,35
6.295,97
5.352,46

9.584,33 10.129,65 10.674,97 11.220,29 11.765,61 12.310,93 12.856,25
9.721,93 10.147,57 10.573,21
9.296,29
8.019,37
8.856,95
8.486,05
8.115,15
7.744,25
6.631,55
7.476,77
7.181,57
6.886,37
6.591,17
5.705,57
4.888,98
5.815,94
5.584,20
4.285,02
5.705,57
4.907,44
4.114,72
3.559,29
3.168,13
3.608,56
3.145,21
2.924,14
2.645,97
2.440,84
2.765,79
2.519,14
2.345,12
2.207,33

6.295,97
5.346,98
4.480,20
3.876,25
3.424,63
3.888,30
3.401,57
3.143,78
2.851,99
2.633,00
2.997,51
2.724,96
2.537,62
2.381,23

6.000,77
5.127,21
4.297,46
3.717,77
3.296,38
3.748,43
3.273,39
3.033,96
2.748,98
2.536,92
2.881,65
2.622,05
2.441,37
2.294,28

4.307,91
3.786,11
3.473,24
3.161,02

4.028,17
3.529,75
3.253,60
2.955,00

4.447,78
3.914,29
3.583,06
3.264,03

4.168,04
3.657,93
3.363,42
3.058,01

7.181,57
6.006,29
5.028,42
4.351,69

6.886,37
5.786,52
4.845,68
4.193,21

7.476,77
6.226,06
5.211,16
4.510,17

3.345,09
3.033,69
2.826,37

3.113,37
2.827,87
2.633,87

3.229,23
2.930,78
2.730,12

3.460,95
3.136,60
2.922,62

b)

- EUR 184,33 is replaced by  EUR 186,14 in Article 1(1) of Annex VII  to the

Staff Regulations,

- EUR 237,38 is replaced by  EUR 239,71 in Article 2(1) of Annex VII  to the

Staff Regulations,

- EUR 424,07 is replaced by EUR 428,22 in the second sentence of Article 69
of  the  Staff  Regulations  and  in  the  second  subparagraph  of  Article 4(1)  of
Annex VII thereto,

- EUR 212,14 is replaced by EUR 214,22 in the first paragraph of Article 3 of

Annex VII to the Staff Regulations.

Article 2

With effect from 1 July 2002, the table of basic monthly salaries in Article 63 of the
Conditions of Employment of Other Servants is replaced by the following:

6

CATEGOR Y

GR OUP

1

2

3

4

STEP

A

B

C

D

I

II

III

IV

V

VI

VII

VIII

IX

5.774,37

6.489,63

7.204,89

7.920,15

4.190,95

4.599,33

5.007,71

5.416,09

3.521,83

3.678,71

3.835,59

3.992,47

3.383,18

3.714,38

4.045,58

4.376,78

2.657,44

2.832,61

3.007,78

3.182,95

2.527,41

2.676,20

2.824,99

2.973,78

2.262,12

2.339,09

2.416,06

2.493,03

2.044,60

2.165,02

2.285,44

2.405,86

1.969,03

1.996,46

2.023,89

2.051,32

Article 3

With  effect  from  1  July  2002  the  fixed  allowance  referred  to  in  Article 4a  of
Annex VII to the Staff Regulations shall be:

- EUR 111,71 per month for officials in Grade C4 or C5,

- EUR 171,28 per month for officials in Grade C1, C2 or C3.

Article 4

Pensions for which entitlement has accrued by 1 July 2002  shall  be calculated from
that date by reference to the table of basic monthly salaries laid down in Article 66 of
the Staff Regulations, as amended by Article 1(a) of this Regulation.

Article 5

With  effect  from  1  July  2002,  the  table  in  Article 10(1)  of  Annex VII  to  the  Staff
Regulations is replaced by the following:

Entitled to household allow ance

N ot entitled to household allow ance

1st to 15th day

from 16th day

1st to 15th day

from 16th day

EU R per calendar day

A  1 - A  3 &  LA  3 

A  4 - A  8; LA  4 - 
LA 8 and category B

O ther grades

72,62

70,46

63,93

49,85

47,82

41,15

28,64

24,96

20,58

34,22

31,91

29,77

7

Article 6

With effect from 1 July 2002, the allowances for shiftwork laid down in Article 1 of
Council  Regulation  (ECSC,  EEC,  Euratom)  No 300/766  shall  be  EUR 323,81,
EUR 488,74, EUR 534,38 and EUR 728,54.

Article 7

With effect from 1 July 2002, the amounts in Article 4 of Council Regulation (EEC,
Euratom, ECSC) No 260/687 shall be subject to a weighting of 4,674337.

Article 8

This  Regulation  shall  enter  into  force  on  the  day  following  its  publication  in  the
Official Journal of the European Communities.

This  Regulation  shall  be  binding  in  its  entirety  and  directly  applicable  in  all
Member States.

Done at Brussels,

For the Council
The President

6

7

OJ L 38, 13.2.1976, p.1. This Regulation was supplemented by Regulation (Euratom, ECSC,
EEC)  No  1307/87  (OJ  L  124,  13.5.1987,  p.6)  and  last  amended  by  Regulation  (Euratom,
ECSC, EC) No … (OJ …).
OJ L 56, 4.3.68, p.8. This Regulation was last amended by Regulation (Euratom, ECSC, EC)
No … (OJ …).

8

                                                
FINANCIAL STATEMENT

Estimate of the budgetary implications over 12 months resulting from the correction of +1%
of the annual adjustment of the remuneration and pensions of officials and other servants of
the European Communities

 Unit:  EUR million

INSTITUTION

1.07.2002
Expenditure

-
 Revenue

COMMISSION ADMINISTRATIVE

16,6  

COMMISSION RESEARCH

PARLIAMENT

COUNCIL

COURT OF JUSTICE

COURT OF AUDITORS

ESC / CoR

DECENTRALISED AGENCIES

TOTAL REMUNERATION

PENSIONS

TOTAL

2,9  

3,5  

2,2  

1,1  

0,6  

0,6  

1,3  

28,8  

7,0  

35,8  

2,7  

0,5  

0,6  

0,4  

0,2  

0,1  

0,1  

0,2  

4,8  

0,9  

5,7  

30.06.2003

Total

13,9  

2,4  

2,9  

1,9  

0,9  

0,5  

0,5  

1,1  

24,1  

6,2  

30,3  

Estimate of the budgetary implications over 18 months resulting from the correction of +1%
of the annual adjustment of the remuneration and pensions of officials and other servants of
the European Communities

 Unit:  EUR million

1.07.2002

-

31.12.2003

INSTITUTION

 Expenditure

 Revenue

COMMISSION ADMINISTRATIVE

24,9

COMMISSION RESEARCH

PARLIAMENT

COUNCIL

COURT OF JUSTICE

COURT OF AUDITORS

ESC / CoR

DECENTRALISED AGENCIES

TOTAL REMUNERATION

PENSIONS

TOTAL

4,4

5,3

3,3

1,7

0,9

0,9

2,0

43,4

10,5

53,9

9

4,1

0,8

0,9

0,6

0,3

0,2

0,2

0,3

7,4

1,4

8,8

Total

20,9

3,6

4,4

2,9

1,4

0,8

0,8

1,7

36,5

9,3

45,8

The Commission considers that the impact of this correction to the 2002 annual adjustment can
be covered in 2003 and 2004. As regards heading 5:

– 

– 

for  2003:  the  Commission  considers  that  some  Institutions  should  propose  to  the
budgetary  authority  “mop-up”  transfers  to  mobilise  the  maximum  appropriations
available within each section. However, in view of the high levels of expenditure, it will
probably  be  necessary  to  present  a  draft  amending  budget  to  mobilise  the  margin
available  under  heading 5  (€20 million).  That  margin  could  be  allocated  between  the
Institutions on the basis of the impact of the  respective expenditure. Where  necessary,
payment of that part of the expenditure that cannot be made in 2003 will be made from
2004 appropriations at the beginning of the financial year.

for 2004: the Commission considers that the margin under heading 5 covers the impact
of the correction. However, it does not think it appropriate to present a draft amending
budget at the beginning of the financial year. It should rather be presented, if necessary,
during the  year  when  the  forecast total annual expenditure  of  each  Institution  justifies
this.

10