Commission staff working document accompanying the proposal for a Council (EC, EURATOM) regulation adjusting with effect from 1 July 2008 the remuneration and pensions of officials and other servants of the European Communities and the correction coefficients applied thereto Eurostat report on annual adjustment of remuneration and pensions - Reference Period: June 2007 – June 2008 - Eurostat, Unit D5 - Luxembourg, October 2008 [COM(2008) 788 final]
Date: 2008-11-21
Institutions: European Commission
Subjects: European official, pay, regulations for civil servants, servant (EU), social-security benefit

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 21.11.2008 
SEC(2008) 2875 

COMMISSION STAFF WORKING DOCUMENT 

Accompanying the 

Proposal for a 

COUNCIL (EC, EURATOM) REGULATION 

adjusting with effect from 1 July 2008 the remuneration and pensions of officials and 
other servants of the European Communities and the correction coefficients applied 
thereto 

EUROSTAT REPORT ON ANNUAL ADJUSTMENT OF REMUNERATION AND 
PENSIONS 

Reference Period: 
June 2007 – June 2008 

Eurostat, Unit D5 

Luxembourg, October 2008 

[COM(2008) 788 final] 

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TABLE OF CONTENTS 

Executive Summary ................................................................................................................. 3 

Introduction .............................................................................................................................. 4 

1. 

1.1. 

1.2. 

2. 

3. 

4. 

4.1. 

4.2. 

Evolution of the purchasing power of national officials ......................................... 5 

Specific Indicator ......................................................................................................... 5 

Control Indicator .......................................................................................................... 5 

Changes in the cost of living for Brussels (Brussels International Index) ............ 6 

Adjustment of remuneration and pension in Belgium and Luxembourg............. 7 

Adjustment of remuneration and pension outside Belgium and Luxembourg .... 8 

Correction coefficients for staff outside Belgium and Luxembourg ........................... 8 

Correction coefficients for pensioners outside Belgium and Luxembourg ............... 11 

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Executive Summary 

The  report  presents  all  information  required  for  the  annual  adjustment  of  remuneration  and 
pensions in Belgium/Luxembourg and in other places.  

For the period July 2007 – July 2008 the global specific indicator (average change in real net 
remuneration)  is  -1.3%  and  the  Brussels  International  Index  (cost  of  living  for  the  EC 
officials) is 104.4.  

As a consequence the adjustment of the nominal net remuneration and pension of EC officials 
in  Belgium  and  Luxembourg,  necessary  to  maintain  a  parallel  development  of  purchasing 
power with the civil servants in the Member States is equal to +3.0%.  

The correction coefficients, which apply to remuneration and pensions outside Belgium and 
Luxembourg, are given in tables 5 and 7 respectively. 

Specific indicators for France and UK have still to be validated. 

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Introduction 

In accordance with the Articles 64, 65 and Annex XI of the Staff Regulations applicable to 
officials and other servants of the European Communities, Eurostat hereby presents its report 
for the twelve months to July 2008. 

Article 64, 65 and Annex XI of the Staff Regulations, which are in force since 1 May 2004, 
define  the  method  for  the  annual  adjustment  of  remuneration  and  pension  of  Community 
officials. The annual adjustments shall accordingly be determined by the following factors: 

•  average  change  in  the  purchasing  power  of  salaries  of  national  civil  servants  in  central 

government (global specific indicator); 

•  change in the cost of living in Brussels (Brussels International Index); 

•  economic  parities  between  Brussels  and  the  other  places  of  employment  in  the  Member 

States (correction coefficients). 

The value of the annual adjustment is equal to the product of the global specific indicator and 
the  change  in  the  Brussels  International  Index.  Changes  in  the  cost  of  living  in  places  of 
employment other than Brussels and Luxembourg are derived indirectly from the value of the 
adjustment for Brussels and any changes in the economic parities between Brussels and those 
other places. 

Chapters 1 to 4 of this report examine respectively: 

•  Evolution of the purchasing power of national officials in the central governments, 

•  Changes in the cost of living in Brussels, 

•  Adjustment of remuneration and pensions in Belgium and Luxembourg, and  

•  Adjustment of remuneration and pensions outside Belgium and Luxembourg. 

All  figures  and  calculations  contained  in  this  report  are  based  on  data  supplied  by  the 
responsible  authorities  in  the  Member  States.  More  information  on  methodology,  detailed 
results and statistical analysis is available in the annexes to this report and detailed procedural 
manuals. For any information concerning this report, please contact Eurostat in Luxembourg: 

Eurostat, Unit D5  
BECH – A2/018,  
Bâtiment Jean Monnet 
L-2920 Luxembourg 
Tel.: (352) 4301-35287 
Email: estat-a64ia65@ec.europa.eu 

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1. 

EVOLUTION OF THE PURCHASING POWER OF NATIONAL OFFICIALS 

1.1. 

Specific Indicator 

Article 1.4 of the Annex XI says that to establish a global specific indicator for the 
European  Union,  Eurostat  shall  use  a  sample  composed  of  the  following  Member 
States:  Belgium,  Germany,  Spain,  France,  Italy,  Luxembourg,  the  Netherlands  and 
the United Kingdom. 

Table 1 shows the changes in the net remuneration, both in nominal and real terms, 
in  each  of  the  above  mentioned  eight  Member  States.  Changes  in  the  harmonized 
consumer  price  indices  (inflation  rates)  during  the  period  June  2007  to  June  2008 
have been used to transform nominal changes in the remunerations to the real ones. 
In  order  to  get  the  global  specific  indicators  the  results  per  country  have  been 
weighted  in  proportion  to  their  national  GDP  for  the  year  2007  expressed  in 
purchasing power parities. The global specific indicator (average change in real net 
remuneration) for the year 2008 is -1.3%.  

Table 1

Change in the net remuneration of central government civil servants
July 2007 - July 2008

Country

Weight ¹              

EU25=100 / EU8=100

Nominal net 
specific indicator

Consumer 
price indices

Real net specific 
indicator

Effect on the 
total

BE

DE

ES

FR 2

IT

LU

NL

UK 2

Total

(%)

2.5

18.8

9.7

14.3

12.1

0.3

4.3

14.2

76.2

(%)

3.3

24.7

12.7

18.8

15.9

0.4

5.6

18.6

100.0

(%)

5.7

2.7

4.7

2.1

1.3

3.7

1.2

2.2

2.5

(%)

5.8

3.4

5.1

4.0

4.0

5.3

2.3

3.8

3.9

(%)

-0.1

-0.7

-0.4

-1.8

-2.6

-1.5

-1.1

-1.5

-1.3

0.00

-0.17

-0.05

-0.34

-0.41

-0.01

-0.06

-0.29

-1.3

¹ Basis: GDP expressed in PPP, 2007
2 Provisional  value for nominal net specific indicator

1.2. 

Control Indicator 

Following Article 1.4 (c) of Annex XI of the Staff Regulations, Eurostat reports here 
on data concerning the real per capita emoluments in central government. These data 
serve as control indicators. As the control indicator is expressed in gross terms, it is 
compared with the gross specific indicator. 

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Table 2 compares the changes in real gross per capita remuneration in July 2008 with 
those of per capita real wage bills for 2008, where the respective values for 2007 are 
taken  as  100.  The  table  also  shows  the  differences  (in  percent)  between  these  two 
indicators.  

Table 2

Comparison of the gross specific indicator and the control indicator in real terms
Current reference period (2008 = 100)

Country

Real gross specific 
indicator
[1]

BE

DE

ES

FR

IT

LU

NL

UK

Total

98.4

100.0

99.9

98.2

97.7

101.0

99.2

98.5

98.9

Control indicator * 

Difference (%)

[2]

99.5

101.2

99.7

99.9

96.7

101.4

100.1

99.4

[3]

1.1

1.2

-0.2

1.7

-1.0

2.2

1.7

0.5

*Eurostat and DG-ECFIN estimates. No data for Luxembourg.

Relatively  big  differences  are  apparent  for  some  Member  States.  They  result  from 
conceptual  and  statistical  differences  between  the  gross  specific  indicator  and  the 
control indicator. 

2. 

CHANGES IN THE COST OF LIVING IN BRUSSELS (BRUSSELS INTERNATIONAL INDEX) 

Article 64 and Annex XI of the Staff Regulations state that Eurostat shall draw up an 
index, based on the data provided by the Belgian authorities, to measure the changes 
in the cost of living for officials of the Communities in Brussels. This index, known 
as Brussels International Index, shall take into account the changes between June of 
the previous year and June of the current year and shall be based on the methodology 
defined by the Working Group on Article 64 of the Staff Regulations. 

The details of the calculation of this index corresponding to the 2008 annual salary 
adjustment are set out in table 3. The table shows that the cost of living for the EU 
officials  in  Brussels  during  the  period  June  2007  –  June  2008  has  increased,  on 
average by 4.4%. 

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Table 3
Changes in the Brussels International Index (BII)
June 2007 - June 2008

Groups of consumption

Weight

Index

1. Food and non-alcoholic beverages
2. Alcoholic beverages and tobacco
3. Clothing and footwear
4. Housing, water, electricity, gas and other fuels
5. Furnishings, household equipment and maintenance of house
6. Health
7. Transport
8. Communications
9. Recreation and culture
10. Education
11. Hotels, cafes and restaurants
12. Miscellaneous goods and services
Global index without rents
Rents index

Global index

129.5
21.8
46.7
245.7
85.3
18.5
151.0
21.5
109.9
18.2
18.2
61.2
804.3
195.7

1000.0

107.0
104.0
101.1
109.0
102.0
99.1
103.8
97.6
100.0
102.0
103.6
102.2
104.5
104.3

104.4

3. 

ADJUSTMENT OF REMUNERATION AND PENSIONS IN BELGIUM AND LUXEMBOURG 

Taking  into  account  the  figures  reported  in  chapter  1  and  2  the  adjustment  of  the 
nominal net remuneration of EU officials in Belgium and Luxembourg, necessary to 
maintain  a  parallel  development  of  purchasing  power  with  the  civil  servants  in  the 
Member States, is equal to: 

Salary change

104.4 ×

98.7

                                                        — 100 = 3.0%

100

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4. 

ADJUSTMENT  OF  REMUNERATION  AND  PENSIONS  OUTSIDE  BELGIUM  AND 
LUXEMBOURG 

4.1. 

Correction coefficients for staff outside Belgium and Luxembourg 

The object of the economic parities is to compare the relative costs of living of EU 
officials  in  Brussels  (reference  city)  with  each  of  the  European  capitals  and  other 
places  of  employment  for  which  a  correction  coefficient  has  been  set.  The  method 
used is to compare the price of a "basket" of goods and services in Brussels with the 
prices of the same goods and services in each of the other places of employment. The 
weighted  average  of  all  the  price  ratios  is  the  "economic  parity".  The  average 
consumption  expenditure  pattern  of  EU  officials  are  used  as  weights,  identified  by 
means of periodic family budget surveys. In places of employment outside Brussels 
with  very  few  officials,  a  common  structure  pooling  all  the  questionnaires  from 
similar locations is derived instead. 

The changes in the cost of living in the places of employment outside Belgium and 
Luxembourg are measured by the implicit price indices which are calculated as the 
product of the Brussels International Index and the changes in the economic parities 
between Brussels and those other places. Table 4 shows these changes.  

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Changes in the economic parities in the twelve months to 1st July 2008

Table 4

Country

Parity

Parity

Change

(for staff)

Place of employment

1.7.2007

1.7.2008

BE/LU Brussels/Luxembourg

BG Sofia

CZ

Prague

DK Copenhagen

DE

Berlin

Bonn

Karlsruhe

Munich

Tallinn

Athens

EE

EL

ES Madrid

FR

IE

IT

Paris

Dublin

Rome

Varese

CY Nicosia

LV Riga

LT

Vilnius

HU Budapest

MT Valletta

NL

The Hague

AT Vienna

PL Warsaw

PT

Lisbon

RO Bucharest

SI

Ljubljana

SK Bratislava

FI

SE

Helsinki

Stockholm

UK London
Culham

1.000

1.287

23.24

10.38

0.993

0.983

0.969

1.066

12.45

0.953

1.004

1.174

1.218

1.106

0.986

0.897

1.000

1.378

23.55

10.40

0.989

0.980

0.964

1.053

13.30

0.950

1.016

1.155

1.219

1.115

0.986

0.892

0.5523

0.5993

2.464

222.3

0.848

1.115

1.078

3.052

0.922

2.416

0.883

27.50

1.178

10.81

0.962
0.779

2.633

224.0

0.850

1.091

1.078

3.157

0.917

2.747

0.902

26.47

1.198

10.87

0.995
0.799

(%)

0.0%

7.1%

1.3%

0.2%

-0.4%

-0.3%

-0.5%

-1.2%

6.8%

-0.3%

1.2%

-1.6%

0.1%

0.8%

0.0%

-0.5%

8.5%

6.9%

0.8%

0.2%

-2.2%

0.0%

3.4%

-0.5%

13.7%

2.2%

-3.7%

1.7%

0.6%

3.4%
2.6%

Implicit price
index

4.4

11.9

5.8

4.7

4.0

4.1

3.9

3.2

11.5

4.1

5.7

2.7

4.5

5.3

4.4

3.9

13.3

11.6

5.3

4.6

2.2

4.4

8.0

3.9

18.8

6.7

0.6

6.2

5.0

8.0
7.1

Note: Cyprus and Malta joined Eurozone on 1 January 2008; value for 2007 converted using fixed exchange rate.

The  correction  coefficients  applicable  to  the  salaries  of  the  European  institution 
officials  working  in  the  capitals and places  of employment other than Brussels and 
Luxembourg are determined on the basis of the relationships between the economic 
parities and the exchange rates for the month of July.  

The  correction  coefficient  operates  as  a  percentage  adjustment  to  salaries  to  take 
account  of  the  cost  of  living  differences  between  Brussels  and  the  various  duty 
stations. Table 5 shows the calculation of the correction coefficients for July 2008 for 

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places of employment situated in the European Union territory for which correction 
coefficients have been set. 

The  value  of  the  adjustment  outside  Belgium  and  Luxembourg  derives  from  the 
value  of  the  adjustment  for  Belgium/Luxembourg  and  from  the  changes  in  the 
economic parities between Brussels and those other places. 

Table 5
Calculation of correction coefficients at 1st July 2008
(for staff)

Country

Parity

Exchange rate

Place of employment

BE/LU Brussels/Luxembourg

BG Sofia
CZ Prague
DK Copenhagen
DE Berlin
Bonn
Karlsruhe
Munich
EE
Tallinn
EL Athens
ES Madrid
FR Paris
IE Dublin

IT

Rome
Varese
CY Nicosia
LV Riga
LT Vilnius
HU Budapest
MT Valletta
NL The Hague
AT Vienna
PL Warsaw
PT
Lisbon
RO Bucharest
Ljubljana
SI
SK Bratislava
FI Helsinki
SE
UK London
Culham

Stockholm

[2]

1.00000
1.95580
24.0020
7.45800
1.00000
1.00000
1.00000
1.00000
15.6466
1.00000
1.00000
1.00000
1.00000

1.00000
1.00000
1.00000
0.70440
3.45280
238.380
1.00000
1.00000
1.00000
3.36710
1.00000
3.65180
1.00000
30.3100
1.00000
9.42630
0.79235
0.79235

[1]

1.000
1.378
23.55
10.40
0.989
0.980
0.964
1.053
13.30
0.950
1.016
1.155
1.219

1.115
0.986
0.892
0.5993
2.633
224.0
0.850
1.091
1.078
3.157
0.917
2.747
0.902
26.47
1.198
10.87
0.9948
0.7995

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Correction 
coefficient
100 * [1] / [2]

100.0
70.5
98.1
139.4
98.9
98.0
96.4
105.3
85.0
95.0
101.6
115.5
121.9

111.5
98.6
89.2
85.1
76.3
94.0
85.0
109.1
107.8
93.8
91.7
75.2
90.2
87.3
119.8
115.3
125.6
100.9

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4.2. 

Correction coefficients for pensioners outside Belgium and Luxembourg 

The Staff Regulations, which are in force since 1 May 2004 stipulate the creation of 
correction  coefficients  for  pensioners  separate  from 
those  used  for  staff 
remuneration.  The  difference  is  that  instead  of  being  based  on  capital  city  price 
comparisons they relate to national comparisons, with Belgium as the base country. 

This  section  presents  the  calculated  values  of  the  economic  parities  and  the 
correction  coefficients  for  pensioners,  with  a  reference  date  of  July  1,  2008.  The 
changes in the cost of living in Member States other than Belgium and Luxembourg 
are  measured  by  the  implicit  indices  which  are  calculated  as  the  product  of  the 
Brussels  International  Index  and  the  changes  in  the  economic  parities  between 
Belgium and the Member States. Table 6 shows these changes. 

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Table 6
Changes in the economic parities in the twelve months to 1st July 2008
(for pensioners)

Country

BE/LU

BG

CZ

DK

DE

EE

EL

ES

FR

IE

IT

CY

LV

LT

HU

MT

NL

AT

PL

PT

RO

SI

SK

FI

SE
UK

Parity
1.7.2007

Parity
1.7.2008

Change
(%)

Implicit price
index

1.000

1.135

21.38

10.07

0.997

12.15

0.933

0.964

1.073

1.180

1.071

0.917

1.000

1.223

21.86

10.17

0.994

12.82

0.949

0.960

1.063

1.185

1.076

0.919

0.5232

0.5620

2.343

192.1

0.870

1.030

1.072

2.762

0.906

2.233

0.841

25.31

1.146

10.51
0.8049

2.483

194.5

0.867

1.015

1.069

2.847

0.910

2.444

0.860

24.83

1.162

10.51
0.8349

0.0%

7.8%

2.3%

1.0%

-0.3%

5.5%

1.7%

-0.4%

-0.9%

0.4%

0.4%

0.2%

7.4%

6.0%

1.2%

-0.4%

-1.5%

-0.2%

3.1%

0.5%

9.4%

2.3%

-1.9%

1.4%

0.0%
3.7%

4.4

12.6

6.8

5.5

4.2

10.1

6.2

4.1

3.5

4.9

4.9

4.6

12.2

10.7

5.7

4.0

2.9

4.2

7.7

4.9

14.3

6.8

2.5

5.9

4.4
8.3

Note: Cyprus and Malta joined Eurozone on 1 January 2008; value for 2007 converted using fixed exchange rate.

Table 7 shows the correction coefficients for all member States (relative to Belgium) 
calculated for the pensioners. Their use is subject to specific rules set out in the Staff 
Regulations. 

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Table 7
Calculation of correction coefficients at 1st July 2008
(for pensioners)

Country

Parity

Exchange rate

BE/LU
BG
CZ
DK
DE
EE
EL
ES
FR
IE

IT
CY
LV
LT
HU
MT
NL
AT
PL
PT
RO
SI
SK
FI
SE
UK

[1]
1.000
1.223
21.86
10.17
0.994
12.82
0.949
0.960
1.063
1.185

1.076
0.919
0.5620
2.483
194.5
0.867
1.015
1.069
2.847
0.910
2.444
0.860
24.83
1.162
10.51
0.8349

[2]
1.00000
1.95580
24.0020
7.45800
1.00000
15.6466
1.00000
1.00000
1.00000
1.00000

1.00000
1.00000
0.70440
3.45280
238.380
1.00000
1.00000
1.00000
3.36710
1.00000
3.65180
1.00000
30.3100
1.00000
9.42630
0.79235

Correction 
coefficient
100 * [1] / [2]
100.0
62.5
91.1
136.4
99.4
81.9
94.9
96.0
106.3
118.5

107.6
91.9
79.8
71.9
81.6
86.7
101.5
106.9
84.6
91.0
66.9
86.0
81.9
116.2
111.5
105.4

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