Proposal for a Council Regulation (EC, Euratom) adjusting with effect from 1.1.2004 the remuneration and pensions of officials and other servants of the European Communities and the weightings applied thereto
Date: 2003-11-11
Institutions: European Commission
Subjects: European official, cost of living, pay, pay rise, pension scheme, servant (EU)

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 11.11.2003
COM(2003) 682 final

Proposal for a

COUNCIL REGULATION (EC,  EURATOM)

adjusting with effect from 1.1.2004 the remuneration and pensions of officials and other
servants of the European Communities and the weightings applied thereto

(presented by the Commission)

EXPLANATORY MEMORANDUM

(Summary of Eurostat report)

1.

PREAMBLE

In accordance with the political agreement reached in the Council on 29 September
2003,  the  2003  annual  adjustment  of  remunerations  on  the  basis  of  the  current
method must, by way of exception, take effect from 1 January 2004.

The  Commission  has  accordingly  drafted  a  proposal1  for  a  Regulation  extending
Annex XI until 30 June 2004. Pending the adoption of that extension, this proposal is
based on Articles 64 and 65 of the Staff Regulations.

Under  Article  65  of  the  Staff  Regulations  the  Council  is  required  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  calculations  referred  to  in  this  proposal  are  based  on  the  results  of  proposal
COM (2003) 580 correcting remuneration and pensions by 1%.

2.

TREND  IN  PURCHASING  POWER  OF  THE  REMUNERATION  OF
NATIONAL CIVIL SERVANTS

2.1.

Specific indicator

Eurostat  has  worked  out  the  trend  in  civil  service  remuneration  on  the  basis  of
information  provided  by  the  Member States  for  the  twelve-month  period  up  to
1.7.2003, for each category of official in each Member State.

The  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
1.7.2003 is 1,1 %.

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

1

COM(2003)612

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
1.7.2002 - 1.7.2003

N ominal changes in C hanges in consumer R e al chang e s  in the

Country

the net remuneration

price indices

ne t re mune ratio n

W eighting

(% )

3,1

2,6

1,7

11,5

4,1

2,4

7,5

5,9

2,0

1,9

2,8

1,2

1,4

2,8

2,6

Belgium

Denmark

Germany

Greece

Spain

France

Irlande

Italy

Luxembourg

N etherlands

Austria

Portugal

Finland

Sweden

United K ingdom

EUR 15

(% )

1,5  

0,4  

0,7  

7,4  

1,4  

0,4  

3,9  

3,3  

0,2  

-0,1  

1,7  

-2,0  

0,5  

1,0  

-0,3  

1,1

(% )

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

(% )

1,6

2,2

1,0

3,8

2,7

2,0

3,5

2,5

1,8

2,0

1,1

3,3

0,9

1,8

2,9

3

2.1.

Control indicators

By way of control indicators Eurostat shows the changes in real terms of per capita
emoluments 
in  central  government
2,5 %.

in  general  government  2,7 %  and 

indicators  are  compared  with 

the  gross  real  specific 

indicator  of

These 
1,1 %.

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 1.7.2003 calculated by Eurostat is 102,3. The Belgian index (Brussels
capital component) is 102,1 for the same period.

4.

ECONOMIC PARITIES (ARTICLE 1(3) OF ANNEX XI)

The economic parities used to establish the equivalence of purchasing power for the
reference city, Brussels, and the other places of employment at 1.7.2003 are shown in
Table B below.

Cost–of–living  trends  in  the  reference  period  between  the  effective  dates  of  the
economic  parities  (column 4)  are  indirectly  derived  from  the  product  of  the  joint
index  for  Brussels  and  the  variation  in  the  economic  parity  for  the  place  of
employment in question.

4

Effective
date
1.1.2004
except
(5)

 C ountry/place
 of employment

(1)

 Denmark

 Germany (a)

Bonn

K arlsruhe

M unich

Varese

 Greece

Spain

France

Irlande

Italy (b)

N etherlands

Austria

Portugal

Finland

Sweden

United K ingdom (c)

C ulham

 TAB LE B
 ECON OM IC PAR ITIES

Former parity at
1.7.2002
( EUR 1 in nat.
currency.)
(2)

N ew parity at
1.7.2003
( EUR 1 in nat.
currency.)
(3)

10,020

10,080

1,040

0,975

0,957

1,091

0,901

0,974

1,187

1,248

1,054

0,972

1,169

1,081

0,901

1,220

10,780

0,9650

0,7823

1,017

0,957

0,950

1,073

0,914

0,985

1,191

1,233

1,069

0,982

1,151

1,070

0,906

1,206

10,720

0,9636

0,7694

(1) (a) Germany except Bonn,K arlsruhe and M unich
(1) (b) Italy except Varese
(1) (c) United K ingdom except C ulham
(4) Implicit I. = Brussels joint index x parity 2003 / parity2002

Implicit
index
%

(4)

2,9  

0,4  

1,6  

0,6  

3,8  

3,5  

2,6  

1,1  

3,8  

3,4  

0,7  

1,3  

2,9  

1,1  

1,7  

2,2  

0,6  

5

1.

INTERMEDIATE ADJUSTMENT

An initial adjustment for the change in the cost of living was made by the Council2
for  the  reference  period  i.e.  the  second  half  of  2002  with  effect  from  1.1.2003,  in
respect of the following countries:

- none

The adjustment to be made for the trend in the cost of living thus takes into account
the interim adjustment for these countries.

2.

ADJUSTMENTS PROPOSED

An adjustment from 1.1.2004 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 2,1 % and the
joint  index  by  2,3 %  over  the  reference  period  of  1.7.2002–  1.7.2003,  the  cost–of–
living  weighting  to  be  incorporated  in  the  salary  tables  for  Brussels  is  2,3 %
(25 % x 2,1 % + 75 % x 2,3 %).

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 1.7.2002
to 1.7.2003 is 1,1 %.

This gives a net nominal increase of 3,4 % (102,3x 101,1 /100) in the remuneration
of officials in Brussels and Luxembourg.

For the other places of employment the adjustments are derived indirectly from the
product of this change and the variation in the economic parity.

For  the  purposes  of  this  review,  the  effective  date  is  1.1.2004  for  all  places  of
employment except the following:

- none

3.

CUMULATED  CHANGES  IN  THE  REMUNERATION  OF  NATIONAL  AND  COMMUNITY
CIVIL SERVANTS

Between July 1990 and July 2002, the cumulative change in the purchasing power of
national  officials  was  2,0%,  which  the  salary  adjustment  Method  passed  on  in  the
remuneration of Community civil servants.

If  this  change  is  set  against  the  28,1%  cost–of–living  increase  in  Brussels,  the
combined salary adjustment up to July 2002 is 30,7%.

Between  July  2002  and  July  2003,  the  change  in  the  purchasing  power  of  national
civil servants was 1,1%.

2

on …

6

                                                
The  result  is  thus  a  cumulative  change  of  3,1%3  in  the  purchasing  power  of
Community  civil  servants  over  the  13  years  period  of  application  of  the  1991
Method.

Adjus tme nt of re mune ration (as  cumulative  pe rce ntage )

P urchasing pow er E U R15

C ost of liv ing in B russels

A djustment of remuneration

12,7

13,7

31,0

3 5,1

28,1

3 0 ,7

26,5

26 ,9

22,7

2 2,4

18,7

19,8

1 9 ,6

17,1

15,4

10,1

8 ,6

9 ,1

11 ,8

10 ,3

7,7

7 ,6

4,1
3 ,4

1 6 ,5

14 ,3

-0,2

-0 ,3 + 0 ,3

+ 2,0 + 3,1

-0 ,1

-0 ,7

-1 ,4

-3,3

-3 ,1

-3 ,2

-2,5

-2,0

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

WEIGHTINGS

Incorporation of the increase for  Brussels from  1.7.2002 to  1.7.2003 (3,4 %)  would
to 100.
bring 

Brussels/Luxembourg 

weightings 

back 

the 

for 

40

35

30

25

20

15

10

5

0

-5

-10

4.

a)

Weightings  for  the  other  places  of  employment  are  directly  determined  by  the
differences  between  the  economic  parities  calculated  by  Eurostat  and  the  exchange
rates  applicable  on  1.7.2003.  The  exchange  rates  are  updated  at  the  same  time  in
accordance with Article 63 of the Staff Regulations (Table C).

b)

The  Council  could  decide  in  2004,  to  establish  new  weightings  effective
retrospectively from 1.7.2004.

These  new  weightings  could  lead  to  retroactive  adjustments  to  remuneration  and
pensions  (positive or negative)  in  respect  of  the  period  in  2004  for  which  payment
operation.
the 
has 

been  made 

already 

basis 

2003 

the 

on 

of 

In this event, either arrears will be paid if there has been an upward adjustment as a
result of the new  weightings  or if there  has been  a  downward  adjustment  the  sums
overpaid from that date will be recovered.

3

Leaving out of account the loss in purchasing power caused by the temporary contribution.

7

                                                
CALCULATION  OF WEIGHTIN GS AT 1 JULY  2003

TAB LE C

 C ountry/place
 of employment

(1)

 Denmark

 Germany (a)

Bonn

K arlsruhe

M unich

Varese

 Greece

Spain

France

Ireland

Italy (b)

N etherlands

Austria

Portugal

Finland

Sweden

United K ingdom (c)

C ulham

Economic parity
(EUR 1 expressed in
national currency
unit)
(2)

Remuneration rate
(EUR 1 expressed in
national currency
unit)
(3)

10,080

7,4270

1,017

0,957

0,950

1,073

0,914

0,985

1,191

1,233

1,069

0,982

1,151

1,070

0,906

1,206

10,720

0,9636

0,7694

1

1

1

1

1

1

1

1

1

1

1

1

1

1

9,1828

0,6901

0,6901

W eighting
(% )

(4)

135,7  

101,7  

95,7  

95,0  

107,3  

91,4  

98,5  

119,1  

123,3  

106,9  

98,2  

115,1  

107,0  

90,6  

120,6  

116,7  

139,6  
111,5  

(1) (a) Germany except Bonn,K arlsruhe and M unich
(1) (b) Italy except V arese
(1) (c) U nited K ingdom except Culham
(3) Exchange rate used for implementation of the Community budget on 1 July 2003
(article 63 of staff regulations)
(4)  = (2) / (3)

8

Proposal for a

COUNCIL REGULATION (EC, EURATOM)

adjusting with effect from 1.1.2004 the remuneration and pensions of officials and other
servants of the European Communities and the weightings applied thereto

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 259/68,4 as last amended by Regulation (EC, ECSC, Euratom) No …5,
and in particular Articles 63, 64, 65, and 82 of 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 Commission6,

Whereas:

(1)

(2)

(3)

(4)

4

5

6

7

In  accordance  with  the  political  agreement  reached  in  the  Council  on  29  September
2003, the 2003 annual adjustment of remunerations on the basis of the current method
must,  by  way  of  exception,  take  effect  from  1  January  2004.  The  Commission  has
accordingly  drafted  a  proposal7  for  a  Regulation  extending  Annex  XI  until  30  June
2004.

A review of the remuneration of officials and other servants carried out on the basis of
a report by the Commission has shown that the remuneration and pensions of officials
and  other  servants  of  the  Communities  should  be  adjusted  under  the  2003  annual
review.

The  annual  adjustment  in  respect  of  2004  could  entail  the  establishment  before  31
December 2004 of new weightings with retroactive effect from 1 July 2004.

These  new  weightings  could  lead  to  retroactive  adjustments  to  remuneration  and
pensions  (positive  or  negative)  in  respect  of  the  period  of  2004  for  which  payments
have already been made on the basis of this Regulation.

OJ L56, 4.3.68, p.1.
OJ …, …, p.1.
OJ C […]
COM(2003)612

9

                                                
(5)

(6)

Provision  should  therefore  be  made  for  the  payment  of  arrears  in  the  event  of  an
upward adjustment as a result of these weightings or for the recovery of sums overpaid
in the event of a downward adjustment for the period between the effective date and
the  date  of  entry  into  force  of  the  Council’s  decision  on  the  annual  adjustment  in
respect of 2004.

Provision  should  be  made  for  the  effects  of  any  such  recovery  to  be  spread  over  a
period  of  not  more  than  twelve  months  following  the  date  of  entry  into  force  of  the
Council’s decision on the annual adjustment in respect of 2004,

HAS ADOPTED THIS REGULATION:

With effect from 1.1.2004 :

Article 1

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

12.717,09 13.392,63 14.068,17 14.743,71 15.419,25 16.094,79
11.285,38 11.930,01 12.574,64 13.219,27 13.863,90 14.508,53

9.346,34
7.851,92
6.473,51
5.594,32
4.815,59
4.258,95
5.594,32
4.847,05
4.065,67
3.516,44
3.143,24
3.586,63
3.119,61
2.910,01
2.629,42
2.424,48
2.740,03
2.498,38
2.325,33
2.192,47

8.774,57
7.425,76

8.391,06
7.120,52
6.013,69

6.815,28
5.756,01
4.821,47
4.171,92

8.732,14
7.240,53
6.204,80
5.294,83

9.172,25
7.624,04
6.510,04
5.534,45

9.910,20 10.474,06 11.037,92 11.601,78 12.165,64 12.729,50 13.293,36
9.612,36 10.052,47 10.492,58 10.932,69
8.292,03
9.158,08
8.007,55
6.857,02
7.731,00
6.815,28
5.899,56
5.055,21
5.774,07
4.430,71
5.899,56
5.074,29
4.254,62
3.680,31
3.275,85
3.731,26
3.252,15
3.023,56
2.735,93
2.523,83
2.859,83
2.604,79
2.424,85
2.282,38

6.510,04
5.528,77
4.632,52
4.008,05
3.541,07
4.020,52
3.517,23
3.250,66
2.948,95
2.722,53
3.099,43
2.817,61
2.623,89
2.462,20

6.204,80
5.301,53
4.443,57
3.844,18
3.408,46
3.875,89
3.384,69
3.137,11
2.842,44
2.623,18
2.979,63
2.711,20
2.524,37
2.372,29

4.165,15
3.649,77
3.364,21
3.055,46

4.454,41
3.914,85
3.591,31
3.268,48

4.599,04
4.047,39
3.704,86
3.374,99

4.309,78
3.782,31
3.477,76
3.161,97

7.425,76
6.210,49
5.199,37
4.499,66

7.120,52
5.983,25
5.010,42
4.335,79

7.731,00
6.437,73
5.388,32
4.663,53

3.219,23
2.924,02
2.723,41

3.458,83
3.136,84
2.922,45

3.339,03
3.030,43
2.822,93

3.578,63
3.243,25
3.021,97

b)

- EUR 186,14  is  replaced  by  EUR 192,47  in  Article 1(1)  of  Annex VII  to  the  Staff

Regulations,

- EUR 239,71  is  replaced  by  EUR 247,86  in  Article 2(1)  of  Annex VII  to  the  Staff

Regulations,

- EUR 428,22 is replaced by EUR 442,78 in the second sentence of Article 69 of the
Staff  Regulations  and  in  the  second  subparagraph  of  Article 4(1)  of  Annex VII
thereto,

10

- EUR 214,22  is  replaced  by  EUR 221,50  in  the  first  paragraph  of  Article 3  of

Annex VII to the Staff Regulations.

Article 2

With effect from 1.1.2004, the table of basic monthly salaries in Article 63 of the Conditions
of Employment of Other Servants is replaced by the following:

CATEGOR Y

GR OUP

1

2

3

4

STEP

A

B

C

D

I

II

III

IV

V

VI

VII

VIII

IX

5.970,70

6.710,28

7.449,86

8.189,44

4.333,44

4.755,70

5.177,96

5.600,22

3.641,57

3.803,78

3.965,99

4.128,20

3.498,21

3.840,67

4.183,13

4.525,59

2.747,79

2.928,92

3.110,05

3.291,18

2.613,34

2.767,19

2.921,04

3.074,89

2.339,03

2.418,62

2.498,21

2.577,80

2.114,12

2.238,63

2.363,14

2.487,65

2.035,98

2.064,34

2.092,70

2.121,06

Article 3

With effect from 1.1.2004  the fixed  allowance referred to in Article 4a  of  Annex VII  to  the
Staff Regulations shall be:

- EUR 115,51 per month for officials in Grade C4 or C5,

- EUR 177,10 per month for officials in Grade C1, C2 or C3.

Article 4

Pensions for which entitlement has accrued by 1.1.2004 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.

With effect from 1.1.2004, the date "1 July 2002" in the second paragraph of Article 63 of the
Staff Regulations is replaced by "1 July 2003".

Article 5

1.

With  effect  from  16  May  2003,  the  weightings  applicable  to  the  remuneration  of
officials and other servants employed in the  countries  and  places  listed  below  shall

Article 6

11

be as follows:

- none

2.

With effect from 1.1.2004, the weightings applicable to the remuneration of officials
and  other  servants  employed  in  the  countries  and  places  listed  below  shall  be  as
follows:

Belgium
Denmark
Germany
     except : Bonn
                    K arlsruhe
                    M unich
Greece
Spain
France
Ireland
Italy
     except : Varese
Luxembourg
N etherlands
Austria
Portugal
Finland
Sweden
United K ingdom
     except : C ulham

100,0
135,7
101,7
95,7
95,0
107,3
91,4
98,5
119,1
123,3
106,9
98,2
100,0
115,1
107,0
90,6
120,6
116,7
139,6
111,5

3.

4.

The  weightings  applicable  to  pensions  shall  be  determined  in  accordance  with
Article 82(1) of the Staff Regulations. Articles 3 to 10 of Council Regulation (ECSC,
EEC, Euratom) No 2175/88 of 18 July 1988 laying down the weightings applicable
in third countries 8 shall remain in force.

These  weightings  could  be  adjusted  by  a  Council  regulation  before  31  December
2004  establishing  new  weightings  with  effect  from  1  July  2004.  In  this  event  the
institutions  shall  make  the  corresponding  positive  or  negative  adjustment  to  the
remuneration  and  pensions  of  the  officials,  former  officials  and  other  persons
concerned  with  retroactive  effect  for  the  period  between  the  effective  date  and  the
date of entry into force of the decision on the 2004 adjustment.

If  this  retroactive  adjustment  necessitates  the  recovery  of  sums  overpaid,  such
recovery may be spread over a period of not more than twelve months from the date
of entry into force of the decision on the 2004 annual adjustment.

8

OJ L 191, 22.7.88, p.1.

12

                                                
With effect from 1.1.2004, the table in Article 10(1) of Annex VII to the Staff Regulations is
replaced by the following:

Article 7

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

75,09

72,86

66,10

51,54

49,45

42,55

29,61

25,81

21,28

35,38

32,99

30,78

Article 8

With  effect  from  1.1.2004,  the  allowances  for  shiftwork  laid  down  in  Article 1  of  Council
Regulation  (ECSC,  EEC,  Euratom)  No 300/769  shall  be  EUR 334,82,  EUR 505,36,
EUR 552,55 and EUR 753,31.

With  effect  from  1.1.2004,  the  amounts  in  Article 4  of  Council  Regulation  (EEC,  Euratom,
ECSC) No 260/6810 shall be subject to a weighting of 4,833264.

Article 9

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

Article 10

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

Done at Brussels,

For the Council
The President

9

10

Council Regulation (ECSC, EEC, Euratom) No 300/76 of 9 February 1976 determining the categories
of officials entitled to allowances for shiftwork, and the rates and conditions thereof (OJ L 38, 13.2.76,
p.1). This Regulation was supplemented by Regulation (Euratom, ECSC, EEC) No 1307/87 (OJ L 124,
13.5.87, p.6) and last amended by Regulation (EC, ECSC, Euratom,) No … (OJ …, …, p.1).
Regulation  (EEC,  Euratom,  ECSC)  No  260/68  of  the  Council  of  29  February  1968  laying  down  the
conditions and procedure for applying the tax for the benefit of the European Communities (OJ L 56,
4.3.1968,  p.  8).  Regulation  as  last  amended  by  Regulation  (EC,  ECSC,  Euratom)  No  …  (OJ  …,  …,
p.1).

13

                                                
FINANCIAL STATEMENT

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

 Unit:  EUR  million

IN STITUTIO N

Expenditure

 Revenue

C O M M ISSIO N  ADM IN ISTRATIVE

C O M M ISSIO N  RESEARC H

PARLIAM EN T

C O UN C IL

C O URT O F JUSTIC E

C O URT O F AUDITO RS

ESC  / C oR

DEC EN TRALISED AGEN C IES

TOTAL R EM UN ER ATION

PEN SION S

TOTAL

57,0  

10,0  

11,9  

7,7  

3,7  

2,0  

1,9  

4,5  

98,7  

24,1  

Total

47,8  

8,4  

9,9  

6,4  

3,1  

1,6  

1,6  

3,8  

8,6  

1,6  

1,9  

1,2  

0,6  

0,3  

0,3  

0,6  

15,1  

3,0  

82,6  

21,2  

122,8  

18,1  

103,8  

The impact for the 2003 financial year is nil as there is on this occasion no retroactivity.

The calculations referred to in this proposal are based on the results of proposal COM (2003)
580 correcting remuneration and pensions by 1%.

14