COMMISSION STAFF WORKING PAPER Eurostat Report on  the annual adjustment of remuneration and pensions of EU officials  In accordance with the Articles 64, 65 and Annex XI of the Staff Regulations applicable to officials and other servants of the European Communities  Accompanying document to the  Proposal for a Council Regulation adjusting with effect from 1 July 2010 the remuneration and pensions of officials and other servants of the European Union and the correction coefficients applied thereto
Date: 2010-11-18
Institutions: European Commission
Subjects: European official, pay, servant (EU), social-security benefit

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EUROPEAN COMMISSION 

Brussels, 18.11.2010 
SEC(2010) 1406 final 

COMMISSION STAFF WORKING PAPER 

Eurostat Report on  
the annual adjustment of remuneration and pensions of EU officials 

In accordance with the Articles 64, 65 and Annex XI of the Staff Regulations applicable 
to officials and other servants of the European Communities 

Accompanying document to the 

Proposal for a Council Regulation adjusting with effect from 1 July 2010 the 
remuneration and pensions of officials and other servants of the European Union and 
the correction coefficients applied thereto 

COM(2010) 678  

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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  the  information  required  for  the  annual  adjustment  of  remuneration 
and pensions in Belgium/Luxembourg and in other places, including: 

- evolution of the purchasing power of national officials;  

- changes in the cost of living in Brussels;  

- correction coefficients for staff and pensioners.  

For the period July 2009 – July 2010 the global specific indicator (average change in real net 
remuneration in the sample of 8 countries) is 98.0 (-2.0 %). Details are provided in Table 1. 

For  the  same  period,  the  Brussels  International  Index  (cost  of  living  measured  for  the  EU 
officials) is 102.4 (+2.4%).. Details are provided in Table 3.  

As a consequence the adjustment of the nominal net remuneration and pension of European 
officials in Belgium and Luxembourg which is necessary to maintain a parallel development 
of purchasing power with the national civil servants in the Member States is equal to +0.4%.  

The  correction  coefficients  which  apply  to  remuneration  and  pensions  outside  Belgium  and 
Luxembourg in order to maintain equality of purchasing power, are provided in Tables 5 and 
7 respectively. 

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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 2010. 

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 C6  
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 8 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  2009  to  June  2010 
have been used to transform nominal changes in the remunerations into movements 
in real terms. In order to get the global specific indicator the results per country have 
been  weighted  in  proportion  to  their  national  GDP  for  the  year  2009  expressed  in 
purchasing power parities. The global specific indicator (average change in real net 
remuneration) for the year 2010 is 98.0 (-2.0%).  

Table 1

Change in the net remuneration of central government civil servants
July 2009 - July 2010

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 

IT

LU

NL

UK 

Total

(%)

2.5

18.9

9.6

13.9

12.3

0.3

4.3

14.4

76.2

(%)

3.3

24.8

12.6

18.2

16.1

0.4

5.6

18.9

100.0

¹ Basis: GDP expressed in PPP, 2009

(%)

0.9

-4.1

-1.3

1.7

0.6

1.9

0.7

1.9

-0.3

(%)

2.7

0.8

1.5

1.7

1.5

2.3

0.2

3.2

1.7

(%)

-1.8

-4.9

-2.8

0.0

-0.9

-0.4

0.5

-1.3

-2.0

-0.1

-1.2

-0.3

0.0

-0.1

0.0

0.0

-0.2

-2.0

1.2. 

Control Indicator 

In  accordance  with  Article  1.4  (c)  of  Annex  XI  of  the  Staff  Regulations,  Eurostat 
compiles  data  concerning  the  real  per  capita  emoluments  in  central  government. 
These  data  serve  as  control  indicators  for  individual  countries  and  a  weighted 

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average is also calculated. As the control indicator is expressed in gross terms, it is 
compared with the gross specific indicator. 

Table 2 compares the changes in real gross specific indicator to July 2010 with those 
of per capita real wage bills for 2010, where the respective values for 2009 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 (2009 = 100)

Country

Real gross specific 
indicator
[1]

BE

DE

ES

FR

IT

LU

NL

UK

Total

*Eurostat estimates. 

97.9

99.3

96.9

100.1

99.4

100.1

101.0

98.7

99.1

Control indicator * 

Difference (%)

[2]

103.9

102.3

103.2

100.0

101.1

104.7

102.5

88.8

99.3

[3]

6.1

3.0

6.5

-0.1

1.7

4.6

1.5

-10.1

0.2

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 2010 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  2009  –  June  2010  has  increased,  on 
average by 2.4%. 

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Table 3
Changes in the Brussels International Index (BII)
June 2009 - June 2010

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

128.2
20.3
54.3
297.6
74.7
19.2
127.2
21.5
91.7
14.7
100.6
50.0
762.9
237.1
1000.0

101.8
100.8
100.7
103.8
101.8
98.6
104.7
97.6
100.8
104.5
101.7
102.1
102.5
102.2
102.4

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

102.4

×

98.0

                                                         — 100 = 0.4%

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  surveys  of  household  expenditure.  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 2010

Table 4

Country

Parity

Parity

Change

(for staff)

Place of employment

1.7.2009

1.7.2010

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

1.354

22.97

10.33

0.984

0.986

0.959

1.061

12.85

0.942

0.994

1.158

1.147

1.106

0.971

0.887

0.592

2.642

226.0

0.855

1.093

1.069

3.245

0.878

2.920

0.908

0.843

1.213

11.17

1.021
0.819

1.000

1.226

21.68

9.990

0.948

0.947

0.921

1.037

11.83

0.948

0.977

1.161

1.091

1.066

0.923

0.837

0.527

2.504

227.0

0.822

1.041

1.062

3.206

0.850

3.040

0.896

0.800

1.194

11.29

1.089
0.847

(%)

0.0%

-9.4%

-5.6%

-3.3%

-3.7%

-3.9%

-3.9%

-2.3%

-7.9%

0.6%

-1.7%

0.3%

-5.0%

-3.6%

-5.0%

-5.6%

-11.1%

-5.2%

0.5%

-3.8%

-4.8%

-0.7%

-1.2%

-3.2%

4.1%

-1.3%

-5.1%

-1.5%

1.1%

6.6%
3.4%

Implicit price
index

2.4

-7.2

-3.3

-0.9

-1.3

-1.6

-1.6

0.1

-5.6

3.0

0.7

2.7

-2.6

-1.2

-2.7

-3.3

-8.9

-2.9

2.9

-1.5

-2.4

1.7

1.2

-0.8

6.6

1.1

-2.8

0.9

3.6

9.2
5.9

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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 2010 for 
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. 

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Table 5
Calculation of correction coefficients at 1st July 2010
(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
Rome
IT
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 Helsinki
SE
UK London
Culham

Stockholm

[1]

1.000
1.226
21.68
9.990
0.948
0.947
0.921
1.037
11.83
0.948
0.977
1.161

1.091
1.066
0.923
0.837
0.527
2.504
227.0

0.822
1.041
1.062
3.206
0.850
3.040
0.896
0.800
1.194
11.29
1.089
0.847

[2]

1.000
1.956
25.75
7.449
1.000
1.000
1.000
1.000
15.65
1.000
1.000
1.000

1.000
1.000
1.000
1.000
0.709
3.453
286.8

1.000
1.000
1.000
4.160
1.000
4.374
1.000
1.000
1.000
9.524
0.810
0.810

Correction 
coefficient
100 * [1] / [2]

100.0
62.7
84.2
134.1
94.8
94.7
92.1
103.7
75.6
94.8
97.7
116.1

109.1
106.6
92.3
83.7
74.3
72.5
79.2

82.2
104.1
106.2
77.1
85.0
69.5
89.6
80.0
119.4
118.6
134.4
104.5

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. 

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This  section  presents  the  calculated  values  of  the  economic  parities  and  the 
correction  coefficients  for  pensioners,  with  a  reference  date  of  July  1,  2010.  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. 

Table 6
Changes in the economic parities in the twelve months to 1st July 2010
(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
1.7.2009

Parity
1.7.2010

Change
(%)

Implicit price
index

1.000

1.212

20.91

9.972

0.988

12.46

0.935

0.935

1.085

1.106

1.065

0.915

0.540

2.450

195.7

0.862

1.011

1.059

2.878

0.872

2.492

0.863

0.790

1.166

10.65
0.851

1.000

1.161

19.95

9.719

0.965

11.99

0.943

0.910

1.076

1.039

1.023

0.867

0.493

2.376

196.6

0.848

0.980

1.051

2.833

0.851

2.585

0.844

0.754

1.124

10.72
0.879

0.0%

-4.2%

-4.6%

-2.5%

-2.3%

-3.8%

0.9%

-2.6%

-0.8%

-6.0%

-3.9%

-5.2%

-8.8%

-3.0%

0.5%

-1.6%

-3.0%

-0.7%

-1.6%

-2.4%

3.7%

-2.2%

-4.6%

-3.6%

0.7%
3.2%

2.4

-1.9

-2.3

-0.2

0.0

-1.4

3.3

-0.3

1.6

-3.7

-1.6

-2.9

-6.6

-0.7

2.9

0.8

-0.7

1.7

0.8

0.0

6.3

0.2

-2.3

-1.3

3.2
5.7

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 2010
(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
1.161
19.95
9.719
0.965
11.99
0.943
0.910
1.076

1.039
1.023
0.867
0.493
2.376
196.6
0.848
0.980

1.051
2.833
0.851
2.585
0.844
0.754
1.124
10.72
0.879

[2]
1.000
1.956
25.75
7.449
1.000
15.65
1.000
1.000
1.000

1.000
1.000
1.000
0.709
3.453
286.8
1.000
1.000

1.000
4.160
1.000
4.374
1.000
1.000
1.000
9.524
0.810

Correction 
coefficient
100 * [1] / [2]
100.0
59.3
77.5
130.5
96.5
76.6
94.3
91.0
107.6

103.9
102.3
86.7
69.4
68.8
68.6
84.8
98.0

105.1
68.1
85.1
59.1
84.4
75.4
112.4
112.6
108.4

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Appendix 1 to the  

Eurostat Report on the Annual Adjustment of 
Remuneration and Pensions  

Explanations and statistical analyses 

Reference period: 

Year to 1 July 2010 

Commission Staff Working Paper 

Statistical Office of the European Communities 

Unit C6, Verification of statistics for administrative purposes 

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October 2010 

Luxembourg 

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TABLE OF CONTENTS 

Introduction 

1.  Evolution of purchasing power of national officials 

1.1.  General remarks on the calculation of the specific indicator 

1.1.1.  Elements of remuneration 

1.1.2.  Net remuneration 

1.1.3.  Reference period 

1.1.4.  Reference population 

1.1.5.  Sample of family types 

1.1.6.  Function groups 

1.1.7.  Sample of grades 

1.1.8.  Sample of countries 

1.1.9.  Calculation of country specific indicator 

1.2. 

Specific indicator - results by functional groups 

1.3.  Remuneration and taxes 

1.4.  Cumulative specific indicators 

1.5.  Control Indicators 

2.  Changes in the cost of living in Brussels 

3.  Equivalence of purchasing power of EC officials in the Member States 

3.1. 

Economic parities and correction coefficients 

3.2.  Rents and rent parities 

3.3. 

Purchasing power parities - analysis of results 

3.3.1.  Major changes in the economic parities from 2005 to 2006 

3.3.2.  Differences in the correction coefficients calculated with and without the rent 

element 

4.  Equivalence of purchasing power of EC pensioners in the Member States 

4.1. 

Economic parities and correction coefficients for pensioners 

4.2. 

Purchasing power parities for pensioners – analysis of results 

4.3.  Comparison of correction coefficients for staff and pensioners 

17 

18 

18 

18 

18 

19 

19 

19 

19 

20 

20 

20 

21 

21 

22 

23 

25 

28 

28 

29 

37 

37 

40 

42 

42 

46 

47 

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5. 

Information about working time 

49 

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Introduction 

This document is an appendix to the 2010 Eurostat report on the annual adjustment of remuneration 
and  pensions.  While  the  main  results  concerning  specific  indicators  and  correction  coefficients  for 
staff  and  pensioners  are  presented  in  the  main  report,  the  purpose  of  this  appendix  is  to  give  some 
explanations  and  statistical  analyses  of  the  results  as  well  as  detailed  tables  with  statistical 
information. 

Articles 64 and 65 and Annex XI of the Staff Regulations, which are in force since 1 May 2004, define 
the method for the annual adjustment of the remuneration and pension of Community officials.  

The value of the adjustment is equal to the product of the specific indicator and the change in the cost 
of living index in Brussels. 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 changes in 
the economic parities between Brussels and those other places. 

Chapters 1, 2, 3 and 4 of this document examine respectively: 

•  the  changes  in  the  purchasing  power  of  salaries  of  central  government  civil  servants  in  the  eight 
Member  States  belonging  to  the  sample:  Belgium,  Germany,  Spain,  France,  Italy,  Luxembourg, 
Netherlands and United Kingdom (specific indicator); 

•  the changes in the cost of living for Brussels; 
•  the economic parities and correction coefficients for staff; 
•  the economic parities and correction coefficients for pensioners. 

In  Chapter  5  some  information  about  working  time  in  Central  Governments  of  the  eight  sampled 
Member States is given. 

All  figures  and  calculations  contained  in  this  report  are  based  on  data  supplied  by  the  responsible 
authorities  in  the  Member  States.  For  any  information  concerning  this  appendix,  please  contact 
Eurostat in Luxembourg: 

Eurostat, Unit C6 
BECH – A2/018 
Bâtiment Jean Monnet 
L-2920 Luxembourg 
tel.: (+352) 4301-35287 
Email: estat-a64ia65@ec.europa.eu 

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5. 

EVOLUTION OF PURCHASING POWER OF NATIONAL OFFICIALS 

5.1. 

General remarks on the calculation of the specific indicator 

The specific indicator is a measure to represent the average change in the purchasing power of central 
government civil servants in Member States of the European Communities. It is measured by the real 
net salary increase in the central government civil service.  

One  of  the  basic  elements  of  the  annual  salary  adjustment  procedure  is  the  principle  of  parallel 
development  of  the  salaries,  in  terms  of  purchasing  power  of  national  central  government  civil 
servants and of officials of the European Communities. The specific indicator is the methodological 
tool allowing the implementation of this principle of parallelism. 

Article 65 and Annex XI determine the basic principles of the method, but these have to be filled with 
practical  procedures.  Therefore,  we  provide  here  a  set  of  commonly  agreed  basic  definitions.  If  a 
specific situation in a given country makes it meaningful to deviate from these definitions to ensure a 
better application of the spirit of the method, then Eurostat, in agreement with that country may do so. 

5.1.1.  Elements of remuneration 

All elements of remuneration that affect the purchasing power of civil servants should be taken into 
account in calculating the gross remuneration. All general bonuses and premiums, which are part of 
the salary, should be reported. In general the following elements should be taken into account: 
•  basic salaries,  
• 
•  non-pensionable lump-sum payments (e.g. annual holiday pay, Christmas bonus). 

all allowances and bonuses (e.g. general premiums, child benefit, family allowances), 

Not to be included: 
• 
• 
•  person-specific special allowances, for example individual bonuses for exceptional performance. 

regional allowances granted to compensate for 'cost-of-living' differences, 
increase due to promotion or seniority, 

5.1.2.  Net remuneration 

In  order  to  get  the  net  remuneration  the  following  elements  should  be  deducted  from  the  gross 
remuneration: 
• 

the  amount  of  compulsory  social  deductions  (social  security  and  occupational  pension  scheme 
contributions),  

•  general taxes on income and  
•  other compulsory deductions (mutual assistance contribution, temporary contribution, etc.). 

Not to be included: 
•  voluntary contributions. 

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5.1.3.  Reference period 

In  order  to  calculate  the  specific  indicators  for  the  year  (t)  the  remuneration  of  central  government 
civil servants on a fixed date of the year (t-1) is to be compared with the remuneration on the same 
date of the year (t).  

The method is based on the comparison of a snapshot of a national remuneration system in the month 
of July of the current year with the equivalent snapshot in the month of July of the previous year. A 
snapshot of the system, however, does not simply mean the remuneration grid in a particular month; 
rather, the remuneration level of the reference population employees in that month, including 1/12 of 
all annually paid elements such as Christmas bonuses, annual holiday pay, lump-sum payments etc. 

If  Member  States  report  remuneration  data  of  a  given  month/year  again  (e.g.  data  concerning 
remuneration of July 2009 sent in 2009 and re-sent in 2010), the data should be exactly the same. If 
not, they have to provide Eurostat with a clear justification (e.g. change in the structure of grades and 
categories in the public administration). 

5.1.4.  Reference population 

The reference population relates to permanent statutory staff of the sub-sector “central governments” 
(S.1311  of  ESA95)  of  Member  States.  It  should  be  noted  that  the  sub-sector  S.1311  in  ESA  95  is 
defined as follows: 

“The  sub-sector  central  government  includes  all  administrative  departments  of  the  State  and  other 
central agencies whose competence extends normally over the whole economic territory, except of the 
administration of social security funds.”  

The reference population should however exclude the following groups: 
•  regional/state and local governments 
• 
• 
•  ministers of religion, if directly paid by central government; 
•  diplomats and magistrates. 

the armed forces, security forces, police forces, frontier guards, etc.; 
teachers, staff of national health services; 

5.1.5. 

Sample of family types 

The specific indicator for each country is calculated on the basis of remuneration data of officials of 
two  different  family  statuses  -  single  and  married  with  two  dependent  children,  and  each  with  a 
weight of 50%.  

5.1.6.  Function groups 

According to Annex XI Eurostat is obliged to provide a specific indicator for each of the two function 
group:  Administrator  (AD)  and  Assistants  (AST).  Therefore,  the  posts  in  the  national  reference 
population should be classified, according to the nature of the duties to which they relate, in these two 
function groups – each should comprise several grades. 
•  Function  group  AD  relates  to  staff  engaged  in  administrative,  advisory,  linguistic  and  scientific 

duties that require university education or equivalent professional experience. 

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•  Function group AST relates to staff engaged in executive, technical and clerical duties that require 

an advanced level of secondary education or equivalent professional experience. 

5.1.7. 

Sample of grades 

Out of the reference population the Member States may select a sample of the more important grades 
in terms of staff numbers for each of the above mentioned function groups. Grades having only a small 
proportion of the total number of staff may be excluded from the sample. 

The  sample  should  be  representative  of  the  reference  population.  The  ratio  between  the  number  of 
staff in the grades covered by the sample and the number in the reference population should normally 
be more than 75%. 

5.1.8. 

Sample of countries 

Article 1.4 of Annex XI specifies that to establish a global specific indicator for the European Union, 
Eurostat shall use a sample composed of the following 8 Member States: Belgium, Germany, Spain, 
France, Italy, Luxembourg, Netherlands and United Kingdom. 

5.1.9.  Calculation of country specific indicator 

On receipt of the data from the Member States Eurostat calculates specific indicators for each of the 
countries separately. The steps leading to these calculations are: 
•  For each grade, Eurostat will calculate average gross and net remunerations for the available steps 

(eg. minimum, maximum, median) and the family types. 

•  Average gross and net remunerations for each grade are then aggregated to two function groups 
(AD and AST). They are calculated by taking weighted averages of the grades belonging to these 
groups. The sample size (number of civil servants in the sample of each grade) is taken as weight. 
•  The  average  gross  and  net  remunerations  for  the  two  function  groups  are  then  aggregated  to 
overall gross and net remunerations in the central government civil service by taking the weighted 
average of the remunerations of these two groups, where the total actual number of civil servants 
in each of the groups is taken as weights. 

•  For each of the function groups as well as for the overall remunerations the following changes for 

the period July – July are calculated:  
o  Gross nominal 
o  Net nominal 
o  Gross real 
o  Net real 

•  The increases in real terms are calculated by taking into account the increase in the harmonized 

index of consumer price (HICP) for this period. 

•  The overall real net increase in remuneration is called the country specific indicator. 

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5.2. 

Specific indicator - results by functional groups 

Table 1.1 sets out the gross and net specific indicators both in nominal and real terms for each of the 
two function-groups.  

Table 1.1

Nominal and real changes in the remuneration of national civil servants 
in the twelve-month period to 1st July 2010 (1.7.2009 = 100)

Country

Nominal change

Real change

BE Gross

Net

DE Gross

Net

ES Gross

Net

FR Gross

Net

IT

Gross

Net

LU Gross

Net

NL Gross

Net

UK Gross

Net

Total Gross

Net

AD

100.5

100.7

100.0

96.5

97.0

97.4

101.9

101.7

101.4

101.0

102.4

101.9

101.3

100.7

101.8

101.8

100.6

99.7

AST

100.5

101.0

100.3

95.1

99.6

99.6

101.7

101.7

100.5

100.4

102.3

101.9

101.2

100.7

102.0

102.0

100.9

99.6

Total

100.5

100.9

100.1

95.9

98.4

98.7

101.8

101.7

100.9

100.6

102.4

101.9

101.2

100.7

101.9

101.9

100.7

99.7

AD

97.9

98.1

99.2

95.7

95.6

96.0

100.2

100.0

99.9

99.5

100.1

99.6

101.1

100.5

98.6

98.6

99.0

98.1

AST

Total

97.9

98.3

99.5

94.3

98.1

98.1

100.0

100.0

99.0

98.9

100.0

99.6

101.0

100.5

98.8

98.8

99.2

97.9

97.9

98.2

99.3

95.1

96.9

97.2

100.1

100.0

99.4

99.1

100.1

99.6

101.0

100.5

98.7

98.7

99.1

98.0

5.3. 

Remuneration and taxes 

Table  1.2  provides  comparative  information  on  gross  and  net  remuneration  as  well  as  on  the  HICP 
inflation rate over 12 months.  

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Table 1.2

Changes in the nominal gross and nominal net specific indicators in relation to 
the rate of inflation for the twelve-month period to 1st July 2010

Country

Gross remuneration

Net remuneration

12 Months HICP

BE

DE

ES

FR

IT

LU

NL
UK

Total

100.5

100.1

98.4

101.8

100.9

102.4

101.2
101.9

100.7

100.9

95.9

98.7

101.7

100.6

101.9

100.7
101.9

99.7

102.7

100.8

101.5

101.7

101.5

102.3

100.2
103.2

101.7

5.4. 

Cumulative specific indicators 

Table 1.3 illustrates the changes in the remuneration of central government civil servants since 2000. 
This table shows the evolution of gross and net specific indicators at current prices, the development 
in  consumer  price  indices  as  well  as  gross  and  net  specific  indicators  in  real  terms.  Over  the  period 
2000-2010 the real net specific indicator for the European Union has increased by 1.6%. 

Table 1.3
Changes in the purchasing power of salaries of civil servants in the central 
government in the Member States (2000=100)

Country

Nominal gross 
specific indicator

Nominal net 
specific indicator

Consumer 
price indices*

Real gross 
specific indicator

Real net specific 
indicator

BE

DE

ES

FR

IT

LU

NL

UK

Total

133.5

110.9

131.6

129.6

131.2

140.4

118.3

134.0

125.8

134.7

110.3

129.9

125.7

130.2

141.0

128.8

133.1

124.8

123.8

117.8

133.1

119.8

125.1

127.9

122.2

127.3

105.3

93.9

98.3

108.2

104.0

110.5

97.4

105.4

102.2

108.8

93.6

97.5

104.9

104.1

110.3

105.2

104.5

101.6

* 2000-2004: National consumer price indices. 2005- : Harmonized index of consumer prices

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Table 1.3a illustrates the changes in the remuneration of central government civil servants since 2003. 
Over  the  period  2003-2010  the  real  net  specific  indicator  for  the  European  Union  has  decreased  by 
1.8%. 

Table 1.3a
Changes in the purchasing power of salaries of civil servants in the central 
government in the Member States (2003=100)

Country

Nominal gross 
specific indicator

Nominal net 
specific indicator

Consumer 
price indices*

Real gross 
specific indicator

Real net specific 
indicator

BE

DE

ES

FR

IT

LU

NL

UK

Total

121.5

105.1

122.5

113.1

118.4

127.8

107.9

119.8

114.3

120.0

103.0

120.5

113.5

115.7

119.4

114.6

119.9

113.6

117.3

112.3

120.2

113.5

116.0

120.0

110.9

120.3

101.1

93.4

101.3

99.6

101.4

107.0

97.9

99.7

98.6

102.2

91.7

100.1

100.1

99.9

99.5

103.3

99.7

98.2

* 2004: National consumer price indices. 2005- : Harmonized index of consumer prices

5.5. 

Control Indicators 

Annex XI mentions explicitly, between the possible control indicators, the real per capita emoluments 
in central government. Eurostat measures the variation, at constant prices, in the per capita wage bill in 
sub-sector S.1311 of the national accounts (per capita salary of central government). As this indicator 
is expressed in gross terms, it is compared with the real gross specific indicator. 

The  gross  specific  indicator  and  the  control  indicator  are  different  by  definition  and  it  is  natural  to 
expect  them  to  show  some  differences.  Indeed,  changes  in  the  control  indicator  are  determined  not 
only by variations in collective labour agreements but also by intrinsic factors (changes in the average 
age  of  the  reference  population,  promotion  to  higher  categories,  etc.)  and  by  changes  in  incidental 
salary  components  such  as  overtime  payments,  productivity  incentives,  and  early  retirement 
compensation. 

Furthermore, there are certain factors which distort the statistical comparability of the two indices (the 
quality of the sample used to calculate the specific indicator, differences in the reference populations, 
part-time work, employers' social contributions, etc.). The deflator used for the control indicator is the 
consumers' expenditure deflator in the national accounts; the deflator for the specific indicator is the 
consumer price index (until 2004, the national index; since 2005 the harmonized index). In addition, 
control indicator values for the reference period are often estimates. 

Eurostat  identifies  differences  between  the  two  indicators  during  the  reference  period,  and  therefore 
puts a greater emphasis on the medium-term trend analysis. For some Member States there are in fact 
divergences. However, if the conceptual and statistical differences between the gross specific indicator 
and in the control indicator are netted out, they show a parallel development.  

Table 1.4 presents the changes in these two indicators for the period 2000-2010. 

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Table 1.4
Comparison of the gross specific indicator and the control indicator in real terms
Medium-term trend (2000 = 100)

Country

Real gross specific 
indicator
[1]

BE

DE

ES

FR

IT

LU

NL

UK

Total

*Eurostat estimates.

105.3

93.9

98.3

108.2

104.0

110.5

97.4

105.4

102.2

Control indicator * 

Difference (%)

[2]

123.0

104.1

129.3

109.4

110.2

116.6

122.4

110.6

112.1

[3]

16.8

10.9

31.5

1.1

5.9

5.6

25.7

5.0

9.7

Table 1.4a presents the changes in these two indicators for the period 2003-2010. 

Table 1.4a
Comparison of the gross specific indicator and the control indicator in real terms
Medium-term trend (2003 = 100)

Country

Real gross specific 
indicator
[1]

BE

DE

ES

FR

IT

LU

NL

UK

Total

*Eurostat estimates.

101.1

93.4

101.3

99.6

101.4

107.0

97.9

99.7

98.6

Control indicator * 

Difference (%)

[2]

113.6

104.9

121.6

104.3

105.0

113.9

119.6

98.7

106.9

[3]

12.4

12.3

20.1

4.6

3.5

6.4

22.2

-1.0

8.3

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6. 

CHANGES IN THE COST OF LIVING IN BRUSSELS 

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 (BII), shall take into account the changes between 
June of the previous year and June of the current year and shall be based on methodology defined by 
the Working Group on Article 64 of the Staff Regulations. 

The following price indices are used to calculate Brussels International Index: 

1)  For  all  80  basic  headings  except  for  those  stated  in  points  2)  and  3)  the  Belgian  harmonised 

indices of consumer prices (HICP). 

2)  In order to take account of the specific situation in Brussels, for the following 9 basic headings the 
Brussels  specific  consumer  price  indices  are  used.  These  indices  are  provided  by  the  “Service 
public federal Economie, P.M.E.” 

•  Water supply 

•  Electricity 

•  Gas 

•  Other services in respect of personal transport equipment 

•  Passenger transport by road 

•  Combined passenger transport 

•  Restaurants, cafes and the like 

•  Accommodation services 

•  Hairdressing salons and personal grooming establishments 

3)  The basic headings figures for accommodation costs for tenants (rents index) and owner-occupiers 
(imputed rents index) are replaced in the Brussels International Index by an index calculated by 
Eurostat  based  on  the  results  of  an  annual  survey  carried  out  among  EC  staff  employed  in 
Brussels.  

The  weights  used  to  aggregate  the  80  basic  headings  of  this  index  are  derived  from  surveys  of 
household  expenditure  (SHE)  carried  out  among  EU  officials  in  Brussels.  The  details  of  the 
calculation of the BII corresponding to this annual review are given in the Eurostat Report. Table 2.1 
shows  both  the  annual  and  cumulative  changes  in  the  Brussels  cost-of-living  index  since  1991.  The 
table underneath shows the change since 2004 (ie. 2003 = 100). 

During  the  years  1990-2003  the  cost  of  living  in  Brussels  was  calculated  as  a  weighted  index 
composed of the Joint Index and the Brussels capital component index. Since 2004, according to the 
Staff Regulations it is calculated as described above (Brussels International Index). 

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Table 2.1
Brussels Cost-of-living index

Measure for increase in 
 cost-of-living in Brussels*

Previous year = 100

1990 = 100

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

104.1

103.5

102.2

102.4

100.9

101.5

101.5

101.4

100.9

102.4

103.1

101.3

102.3

101.9

102.2

102.1

101.4

104.4

100.9

102.4

104.1

107.7

110.1

112.8

113.8

115.5

117.2

118.9

119.9

122.8

126.6

128.3

131.2

133.7

136.6

139.5

141.5

147.7

149.0

152.6

*Until 2003: Weighted index, composed of Joint Index and Brussels Index
  2004 - :

Brussels International Index (BII)

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Table 2.1a
Brussels Cost-of-living index

Measure for increase in 
 cost-of-living in Brussels*

Previous year = 100

2003 = 100

2004

2005

2006

2007

2008

2009

2010

101.9

102.2

102.1

101.4

104.4

100.9

102.4

 * Brussels International Index (BII)

101.9

104.1

106.3

107.8

112.6

113.6

116.3

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7. 

EQUIVALENCE OF PURCHASING POWER OF EC OFFICIALS IN THE MEMBER STATES 

7.1. 

Economic parities and correction coefficients  

The object of the economic parities is to compare the relative cost of living of European officials in 
Brussels  (reference  city)  and  in  each  of  the  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 purchased by the average official in Brussels with the price of the same basket in each of the 
other places of employment. The average of all the price ratios is the "economic parity". 

The system works as follows: the total range of goods and services constituting the consumption of the 
average European institution official is divided into 80 basic headings (such as meat, footwear, motor 
cars, books). A price ratio between the place of employment and Brussels is  established for each of 
these  headings;  this  is  called  the  basic  parity.  Price  surveys  are  conducted  on  products  selected  to 
represent  the  basic  heading  and  specified  in  the  necessary  detail  to  enable  prices  in  a  sufficiently 
narrow range to be collected. 

The Staff Regulations require each basic parity to be checked by direct survey at least once every five 
years.  In  practice  checks  are  carried  out  at  shorter  intervals  as  part  of  the  European  Comparison 
Programme  (ECP).  At  each  annual  salary  review  around  one  third  of  the  basic  price  parities  are 
replaced by new parities produced by the latest price surveys. 

For  the  2010  annual  review,  new  parities  obtained  from  price  surveys  have  been  integrated  for  the 
following groups: 

• 

• 

• 

Services (survey 2008); 

Furniture and Health (survey 2008); 

Food, drink, tobacco (survey 2009). 

The  80  basic  parities  are  then  updated using  the  price  index  ratio  between  the  place  of  employment 
and Brussels. 

Housing is dealt with differently. Special rent surveys of estate agents are carried out each year at each 
place  of  employment,  including  Brussels,  to  calculate  an  economic  parity  for  the  basic  heading 
"accommodation costs for tenants". The calculation follows a methodology that has been developed by 
Eurostat  in  collaboration  with  the  national  statistical  institutes  of  the  Member  States,  based  on  the 
principle that the parity used should be calculated in such a way to allow European institution officials 
outside Brussels to live in dwellings of comparable quality to those occupied by European institution 
officials  in  Brussels.  The  basic  parity  "accommodation  costs  of  owner-occupiers"  is  calculated  by 
reference to the rent the owner-occupiers would pay if they were tenants (these are known as "imputed 
rents"). 

In  order  to  calculate  the  overall  economic  parities  weights  have  to be  applied  to  each  basic  heading 
according to its relative importance in the consumption basket. These weights are calculated directly 
from  the  results  of  the  special  family  budget  surveys  conducted  among  European  and  international 
civil servants every five to seven years. The resulting structure reflects the consumption of the average 
international civil servant in Brussels and in each country or place of employment.  

Using the 80 basic parities and the specific weights the overall parity is calculated in two ways: the 
first uses the consumption pattern for the reference city (Brussels) (this is a type of Laspeyres index); 
the second uses the consumption pattern for the place of employment (this is a type of Paasche index). 

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In  accordance  with  the  standard  practice  for  international  comparisons  both  types  of  index  are 
calculated and the geometric mean of the results (the Fisher index) is used as the economic parity. 

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, which are calculated for 
the month of July, are determined on the basis of the relationships between the economic parities and 
the  exchange  rates  fixed  by  the  Commission  and  specified  in  the  Staff  Regulations  for  the  relevant 
countries. 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.  

The  details  of  the  economic  parities  calculation,  at  the  level  of  12  main  consumption  groups,  are 
shown in table 3.1 for all capitals and other places apart from Brussels and Luxembourg. This table 
also includes information about the consumption weights by country and by expenditure groups. 

7.2. 

Rents and rent parities 

Changes in the rent parities are provided in the Table 3.2 which shows also the average rents by type 
of dwelling on which the calculation is based. The average rents used to compute the rent parities are 
in  fact  weighted  moving  averages,  based  on  a  six-year  model,  to  take  into  account  the  average 
occupancy length, which is estimated to be six years. Any annual updating of rents during the life of 
the typical lease is included in the model by using the appropriate adjustment indices. 

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Expenditure 

Groups

1

2

3

4

5

6

7

8

9

10

11

12

Rents

Total without rents
Global parity

Expenditure 

Groups

1

2

3

4

5

6

7

8

9

10

11

12

Rents

BE

Weight

128.2

20.3

54.3

297.6

74.7

19.2

127.2

21.5

91.7

14.7

100.6

50.0

237.1

762.9
1000.0

BE

Weight

128.2

20.3

54.3

297.6

74.7

19.2

127.2

21.5

91.7

14.7

100.6

50.0

237.1

Total without rents
Global parity

762.9
1000.0

Table 3.1 (Continued on next page)
Economic parities of the 12 main expenditure groups for each duty station
1.07.2010
(for staff)

BG-Sofia

CZ-Prague

DK-Copenhagen

DE-Berlin

DE-Bonn

DE-Karlsruhe

Weight

149.1

27.4

56.4

252.1

77.7

12.6

121.7

22.2

102.9

12.7

104.5

60.9

203.0

797.1
1000.0

Parity

1.204

1.504

1.397

1.237

1.120

1.201

1.391

1.399

1.573

0.316

0.856

1.514

1.294

1.210
1.226

Weight

128.3

26.9

45.0

309.4

69.9

13.8

128.5

16.7

106.5

15.3

87.9

51.5

265.4

734.6
1000.0

Parity

17.73

23.66

23.26

28.01

19.45

18.86

20.82

24.71

21.58

10.19

15.14

22.60

30.55

19.34
21.68

Weight

122.5

25.7

43.0

340.7

66.7

13.2

122.7

16.0

101.7

14.6

83.9

49.2

298.7

701.4
1000.0

Parity

8.766

9.766

7.406

11.89

8.739

10.12

9.837

5.746

9.473

10.20

10.15

10.29

11.72

9.430
9.990

Weight

104.6

23.2

49.1

248.8

89.6

15.4

180.9

21.0

134.8

13.7

77.9

41.0

198.0

802.0
1000.0

Parity

0.947

0.944

0.922

0.953

0.891

1.029

0.977

0.759

1.020

1.398

0.853

0.927

0.948

0.948
0.948

Weight

104.6

23.2

49.1

248.8

89.6

15.4

180.9

21.0

134.8

13.7

77.9

41.0

198.0

802.0
1000.0

Parity

0.967

0.919

0.910

0.886

0.867

1.034

1.007

0.808

1.027

1.398

0.990

0.930

0.847

0.977
0.947

Weight

104.6

23.2

49.1

248.8

89.6

15.4

180.9

21.0

134.8

13.7

77.9

41.0

198.0

802.0
1000.0

Parity

0.957

0.924

0.927

0.861

0.910

1.030

0.988

0.792

0.984

1.398

0.841

0.911

0.816

0.953
0.921

DE-Munich

EE-Tallinn

EL-Athens

ES-Madrid

FR-Paris

IE-Dublin

Weight

104.6

23.2

49.1

248.8

89.6

15.4

180.9

21.0

134.8

13.7

77.9

41.0

198.0

802.0
1000.0

Parity

0.917

0.929

0.940

1.189

0.906

1.030

1.014

0.788

1.064

1.398

1.040

0.997

1.238

0.988
1.037

Weight

135.3

28.4

47.5

271.9

73.7

14.6

135.5

17.6

112.3

16.2

92.7

54.3

225.5

774.6
1000.0

Parity

11.49

14.95

14.39

11.92

11.25

11.62

11.75

13.21

13.45

4.538

10.85

12.21

12.65

11.61
11.83

Parity

0.914

1.076

1.028

0.948

0.905

0.811

0.973

1.011

1.035

0.644

0.925

0.936

1.075

0.922
0.948

Weight

142.1

28.7

48.8

189.7

109.2

19.7

142.2

23.1

96.8

19.8

118.7

61.3

138.9

861.1
1000.0

30 

Weight

120.8

22.8

40.6

244.0

91.5

17.0

135.6

20.3

96.4

38.4

119.2

53.4

200.9

799.1
1000.0

Parity

0.810

0.818

0.889

1.223

0.981

0.726

0.922

1.182

0.986

0.762

0.862

0.916

1.395

0.883
0.977

Weight

98.6

20.7

50.8

285.0

89.2

14.1

153.1

20.4

118.7

14.6

71.7

63.1

232.5

767.5
1000.0

Parity

0.971

1.002

0.889

1.559

1.037

0.912

0.999

1.169

1.081

0.959

1.090

1.101

1.801

1.012
1.161

Weight

85.1

19.7

55.5

223.8

95.6

21.3

165.5

14.6

135.1

48.4

63.8

71.6

185.3

814.7
999.9

Parity

1.053

1.542

0.629

1.265

0.911

1.106

1.086

0.956

1.048

1.283

1.099

1.238

1.351

1.031
1.091

EN 

EN 

 
  
 
Expenditure 

Groups

1

2

3

4

5

6

7

8

9

10

11

12

Rents

Total without rents
Global parity

Expenditure 

Groups

1

2

3

4

5

6

7

8

9

10

11

12

Rents

BE

Weight

128.2

20.3

54.3

297.6

74.7

19.2

127.2

21.5

91.7

14.7

100.6

50.0

237.1

762.9
1000.0

BE

Weight

128.2

20.3

54.3

297.6

74.7

19.2

127.2

21.5

91.7

14.7

100.6

50.0

237.1

Table 3.1 (Continuation)
Economic parities of the 12 main expenditure groups for each duty station
1.07.2010
(for staff)

IT-Rome

IT-Varese

CY-Nicosia

LV-Riga

LT-Vilnius

HU-Budapest

Weight

123.4

20.0

48.9

242.0

96.0

20.2

145.5

16.6

115.5

21.9

89.3

60.7

181.8

818.2
1000.0

Parity

0.966

1.057

0.978

1.283

1.056

1.001

0.876

1.067

1.049

0.984

0.976

1.060

1.551

0.963
1.066

Weight

136.7

20.9

47.3

219.8

92.6

23.9

153.4

16.2

115.5

19.8

93.4

60.5

155.0

845.0
1000.0

Parity

1.024

0.940

0.956

0.811

1.012

1.023

0.886

1.015

1.014

0.984

0.851

1.055

0.853

0.941
0.923

Weight

151.6

27.8

57.3

239.4

79.1

12.8

123.7

22.6

104.6

12.9

106.3

61.9

189.4

810.5
999.9

Parity

0.920

1.058

0.853

0.655

0.895

0.965

0.894

0.458

1.119

0.803

0.959

0.874

0.628

0.904
0.837

Weight

131.4

27.6

46.1

292.6

71.6

14.2

131.7

17.1

109.1

15.7

90.1

52.8

247.4

752.5
1000.0

Parity

0.529

0.748

0.518

0.588

0.455

0.538

0.488

0.491

0.601

0.235

0.454

0.478

0.651

0.493
0.527

Weight

132.5

27.8

46.5

286.7

72.2

14.3

132.8

17.3

110.1

15.8

90.8

53.2

241.2

758.8
1000.0

Parity

2.257

3.164

2.321

2.935

2.187

2.825

2.687

2.001

2.713

0.870

2.106

2.331

3.185

2.326
2.504

Weight

137.2

25.2

51.9

311.6

71.6

11.6

112.0

20.5

94.7

11.6

96.2

56.0

266.4

733.7
1000.0

Parity

204.2

220.5

202.7

298.2

180.5

179.8

243.0

245.2

224.1

90.11

169.7

184.7

347.0

196.9
227.0

MT-Valletta

NL-The Hague

AT-Vienna

PL-Warsaw

PT-Lisbon

RO-Bucharest

Weight

148.4

27.2

56.1

255.3

77.4

12.5

121.1

22.1

102.5

12.6

104.1

60.6

206.3

Parity

0.796

0.945

0.911

0.771

0.905

0.944

0.947

0.757

0.892

0.588

0.719

0.785

0.764

0.839
0.822

Weight

101.5

18.1

45.7

254.2

95.6

8.6

165.7

19.7

120.3

28.2

86.6

55.8

193.5

806.5
1000.0

Parity

0.840

1.003

0.831

1.295

0.909

0.900

1.067

0.827

1.003

0.900

1.003

1.037

1.414

0.956
1.041

Parity

0.980

0.904

0.937

1.259

1.015

1.046

0.975

0.807

1.025

0.829

0.978

1.115

1.330

0.984
1.062

Weight

135.7

24.9

51.3

319.4

70.8

11.4

110.7

20.2

93.6

11.5

95.1

55.4

274.6

725.4
1000.0

31 

Weight

131.7

27.6

46.2

291.3

71.7

14.2

131.9

17.2

109.3

15.7

90.2

52.9

246.1

753.9
1000.0

Parity

2.525

3.975

2.761

4.242

2.764

2.673

3.332

3.139

3.181

1.211

2.660

2.856

4.820

2.816
3.206

Weight

117.0

16.0

44.9

268.1

83.6

11.6

151.1

18.1

101.2

28.1

105.2

55.1

233.1

766.9
1000.0

Parity

0.796

0.835

0.840

0.842

0.898

0.847

0.961

0.874

0.926

0.969

0.695

0.847

0.852

0.850
0.850

Weight

137.4

25.2

52.0

310.7

71.7

11.6

112.1

20.5

94.8

11.7

96.3

56.1

265.4

734.6
1000.0

Parity

2.634

2.689

2.710

4.249

2.305

2.684

3.256

3.053

2.797

0.889

1.877

3.459

5.314

2.539
3.040

EN 

Total without rents
Global parity

762.9
1000.0

793.7
1000.0

EN 

 
  
Table 3.1 (Continuation)
Economic parities of the 12 main expenditure groups for each duty station
1.07.2010
(for staff)

Expenditure 

Groups

1

2

3

4

5

6

7

8

9

10

11

12

Rents

BE

Weight

128.2

20.3

54.3

297.6

74.7

19.2

127.2

21.5

91.7

14.7

100.6

50.0

237.1

Total without rents
Global parity

762.9
1000.0

SI-Ljubljana

SK-Bratislava

FI-Helsinki

SE-Stockholm

UK-London

UK-Culham

Weight

139.9

25.7

52.9

298.0

73.0

11.8

114.2

20.9

96.6

11.9

98.1

57.1

251.8

748.2
1000.0

Parity

0.847

0.888

0.953

1.015

0.863

0.689

0.844

0.715

0.953

0.643

0.759

0.923

1.064

0.849
0.896

Weight

141.7

26.0

53.6

289.1

73.9

11.9

115.7

21.1

97.8

12.0

99.4

57.8

242.3

757.8
1000.0

Parity

0.746

0.993

0.943

0.908

0.725

0.736

0.696

1.161

0.881

0.309

0.628

0.862

0.978

0.752
0.800

Weight

124.8

26.2

43.8

328.4

68.0

13.4

125.0

16.3

103.6

14.9

85.5

50.1

285.5

714.5
1000.0

Parity

1.014

1.569

1.059

1.359

1.044

0.952

1.181

0.774

1.180

1.098

1.222

1.267

1.447

1.116
1.194

Weight

127.4

26.8

44.7

314.2

69.4

13.7

127.6

16.6

105.8

15.2

87.3

51.2

270.5

729.6
1000.0

Parity

10.02

13.91

10.12

13.72

9.447

9.746

10.64

6.395

10.17

10.05

11.53

11.61

14.39

10.41
11.29

Weight

80.1

19.9

42.3

332.4

80.2

9.6

154.6

17.6

114.8

20.9

65.1

62.5

308.4

691.6
1000.0

Parity

0.742

1.185

0.524

2.015

0.868

0.621

0.906

0.810

0.803

1.037

0.795

0.940

2.359

0.809
1.089

Weight

Parity

98.5

19.5

47.3

287.7

86.3

6.0

153.1

19.0

130.4

22.0

60.0

70.2

235.5

764.5
1000.0

0.741

1.186

0.517

0.968

0.834

0.621

0.877

0.812

0.811

1.037

0.798

0.886

1.043

0.795
0.847

Consumption groups:

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

EN 

32 

EN 

 
  
Table 3.2 (Continued on next page)
Changes in the average rents of accommodation in the twelve months to 1st July 2010
(Values expressed in Euro, except local currencies: CZ, DK, EE, LV, LT, HU, PL, SE, UK)

Country

3 bedroom flat

2 bedroom flat

1 bedroom flat

Place of employment

(140-160m²) (110-130m²) (80-100m²)

(80-100m²)

(60-80m²)

(60-80m²)

(40-60m²)

1611
1636

1578
1530

BE Brussels

BG Sofia

CZ

Prague

DK

Copenhagen

DE Berlin

Bonn

Karlsruhe

Munich

EE

Tallin

EL Athens

ES Madrid

FR

Paris

IE

Dublin

IT

Rome

Varese

CY Nicosia

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

1226
1257

939
820

34306
30438

13857
13950

1117
1204

1011
1082

924
978

1644
1644

1588
1528

2368
2364

1565
1398

1933
1885
897
881
735
761

942
992

10150
10050

977
985

512
482

25492
22813

838
899

777
809

719
764

1215
1242

1040
970

1770
1779

1491
1504
714
705
594
607

769
787

9338
9526

8015
7075

1154
1094

1285
1155

608
602

6164
7093

5910
5400

878
828

975
1009

1030
898

745
753

365
340

17417
17375

619
686

608
632

579
585

924
959

787
773

1149
1159
563
546
477
483

EN 

33 

   EN 

 
Table 3.2 (Continued from previous page)

Changes in the average rents of accommodation in the twelve months to 1st July 2010
(Values expressed in Euro, except local currencies: CZ, DK, EE, LV, LT, HU, PL, SE, UK)

Country

3 bedroom flat

2 bedroom flat

1 bedroom flat

Place of employment

(140-160m²) (110-130m²) (80-100m²)

(80-100m²)

(60-80m²)

(60-80m²)

(40-60m²)

1611
1636

1054
1042

1226
1257

580
582

423911
405731

823
819

1737
1501

1500
1584

6389
5657

1352
1289

1282
1100

1119
1003

19947
19536

BE Brussels

LV

Riga

LT

Vilnius

HU Budapest

MT Valletta

NL

The Hague

AT Vienna

PL Warsaw

PT

Lisbon

RO Bucharest

SI

Ljubljana

SK Bratislava

FI

Helsinki

SE

Stockholm

UK

London

Culham

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

977
985

457
416

636
623

1311
1149

1125
1188

4290
4457

757
770

1019
948

954
821

811
797

15473
15424

769
787

1983
1686

279789
223856

1305
1246

1754
1932
878
932

745
753

327
328

969
874

882
903

595
586

648
646

10780
10477

608
602

1395
1218

162525
128656

458
438

2846
2603

572
508

593
541

998
1021

1353
1471
705
743

942
992

2415
2304

2055
1939

2391
2563
1075
1105

34 

   EN 

EN 

 
 
Table 3.2 (Continued from previous page)
Changes in the average rents of accommodation in the twelve months to 1st July 2010
(Values expressed in Euro, except local currencies: CZ, DK, EE, LV, LT, HU, PL, SE, UK)

Country

Non-detached houses

Detached houses

Rent Parity

Place of employment

(140-160m²)

(110-130m²)

(80-100m²)

(190-220m²)

(150-180m²)

(110-140m²)

BE Brussels

BG Sofia

CZ

Prague

DK Copenhagen

DE Berlin

Bonn

Karlsruhe

Munich

EE

Tallin

EL Athens

ES Madrid

FR Paris

IE

Dublin

IT

Rome

Varese

CY Nicosia

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

0.780
0.662

32.612
30.546

11.820
11.725

0.945
0.948

0.856
0.847

0.817
0.816

1.216
1.238

14.152
12.653

1.081
1.075

1.418
1.395

1.845
1.801

1.436
1.351

1.612
1.551
0.865
0.853

0.641
0.628

1700
1685

1333
1338

1045
1061

1813
1754

1352
1406

2256
2171

1202
1038

60536
55188

19667
21667

1955
1885

1543
1594

1518
1627

2500
2614

16000
15300

3160
3167

1920
1801

40571
39813

13667
15125

1233
1295

1133
1111

1106
1099

1770
1727

11200
11150

2180
2383

1747
1795
1392
1262

1939
1790

2079
1885

1025
920

3020
2911

2921
2672

2102
2219
1979
1883

1590
1375

1540
1555

35 

EN 

   EN 

 
 
Table 3.2 (Continued from previous page)

Changes in the average rents of accommodation in the twelve months to 1st July 2010
(Values expressed in Euro, except local currencies: CZ, DK, EE, LV, LT, HU, PL, SE, UK)

Country

Non-detached houses

Detached houses

Rent Parity

Place of employment

(140-160m²)

(110-130m²)

(80-100m²)

(190-220m²)

(150-180m²)

(110-140m²)

1333
1338

3313
3174

0
0

1106
1129

1828
1623

1776
1596

6630
5973

1379
1236

1179
1325

1716
1935

18900
20426

1700
1685

724
714

590056
481538

1391
1309

BE Brussels

LV

Riga

LT

Vilnius

HU Budapest

MT Valletta

NL The Hague

AT Vienna

PL Warsaw

PT

Lisbon

RO Bucharest

SI

Ljubljana

SK Bratislava

FI

Helsinki

SE

Stockholm

UK London

Culham

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2256
2171

990
1068

963833
779125

2175
2013

11676
9058

1813
1754

5188
4489

3053
2607

1865
1844

2104
1873

2020
1792

1713
1717

2816
2729

25250
25417

1352
1406

3279
3499

1422
1469

0.766
0.651

3.58
3.19

348.750
347.049

0.760
0.764

1.522
1.414

1.342
1.330

4.847
4.820

0.88
0.85

1.260
1.215

1.129
1.064

1.047
0.978

1.451
1.447

14.147
14.389
2.277
2.359

1.043
1.043

1045
1061

2767
2907

1040
1122

36 

   EN 

EN 

 
 
 
7.3. 

Purchasing power parities - analysis of results 

7.3.1.  Major changes in the economic parities from 2009 to 2010 

The calculation of correction coefficients used for salary adjustment in places other than Brussels and 
Luxembourg involves the revision of some of the elementary parities each year. For the 2010 salary 
adjustment three new price surveys have been incorporated: Services (conducted in 2008), Furniture 
and  Health  (conducted  in  2008)  and  Food,  Drink,  Tobacco  (conducted  in  2009)  .  The  weighting 
structure used to aggregate the parities have been updated in Brussels and in sixteen duty stations. The 
rent parities have been calculated for 2010 according to the moving-average model approved by the 
Article 64 Working Party. 

The introduction of new prices from the latest consumer price surveys this year affects 40 (out of 80) 
elementary parities, which together account for about 30% (EU average) of the consumption weight. 

Moreover,  rent  surveys  are  carried  out  every year  in  all  Member  States.  A  six-year  moving average 
model is used for calculating rent parities: the rent parities for 2010 are based on the relative trend in 
the  real-estate  markets  in  Brussels  and  other  places  of  employment  between  2004  and  2010.  These 
parities are, therefore, affected by the following factors: 
• 
•  deletion of the rent data for 2004, 
•  price indices used for updating the rents for 2005 - 2009 to price of 2010. 

introduction of rent data for year 2010, 

All these effects, as well as the total change in rent parities, are shown in table 3.4. 

Details  of  the  changes  in  the  rent  parities  from  2009  to  2010,  including  a  decomposition  of  all  the 
effects,  are  given  in  table  3.4.  The  largest  increases  in  the  rent  parity  could  be  observed  in  London 
(+3.6%),  Munich  (+1.8%)  and  Stockholm  (+1.7%).  The  largest  decreases  in  the  rent  parity  were 
recorded in Sofia (-15.2%), Riga (-15%), Vilnius (-11%) and Tallinn (-10.6%). Changes in the global 
parities from one year to the next come mainly from survey prices and rent revisions, but may also be 
affected  by  the  trend  in  the  price  indices  used  to  update  the  elementary  parities  at  the  date  of  the 
adjustment (1.7.2010) and by changes in the consumption structures (updated every five to seven years 
by the introduction of new SHE results)1. Details of the changes in the economic parities from 2009 to 
2010, including a decomposition of all the effects, are given in table 3.3.  

The biggest increases in global economic parities during the period under review can be observed in 
London (+6.6%), Bucharest (+4.1%), Culham (+3.4%) and Stockholm (+1.1%). The biggest decreases 
in the parities can be observed in Riga (-11.1%), Sofia (-9.4%), Tallinn (-7.9%), Nicosia and Prague (-
5.6%).  

As regards price indexation, official indices for the year to July 2010 at the level of total consumption 
were  lower  than  Brussels  in  24  places  and  higher  than  Brussels  in  the  remaining  6  places,  and  – 
although  there  are  important  differences  between  HICP  and  PPP  methodologies  –  this  relative 
difference is apparent in the price updating effect. 

The  periodicity  of  SHE  ("Survey  of  Household  Expenditures"),  formerly  known  as  FBS  ("Family  Budget 
Survey"), is set by Article 64 Working Group decision. 

EN 

37 

   EN 

 
                                                 
Table 3.3
Changes in the economic parities in the twelve months to 1st July 2010
Decomposition of the effects
(for staff)

Impact of change in PPP

Introduction of new surveys

E08-1

E08-2

Services

Furniture
& Health

E09-1
Food,
drink,
tobacco

Price 
updating 
effect

(HICP)

New rents

New consumption 
structure

Other cities

Brussels

Total change 
*
%

-4.6

-1.3

-0.8

-2.8

-2.7

-2.6

-1.7

-2.9

-0.1

-0.8

0.1

-0.6

-1.3

-1.8

-2.1

-1.5

0.2

-0.6

-3.6

-2.5

-0.7

-1.3

-0.2

-0.1

0.0

-1.0

-1.0

-0.6

1.8

1.8

0.1

-0.3

0.3

0.0

-0.1

0.0

0.0

0.0

-0.4

-0.3

-0.2

0.1

-0.4

-0.7

0.1

0.3

0.2

0.5

0.6

-0.5

0.3

0.3

-0.2

1.4

0.0

-0.3

-0.6

0.4

-0.1

-0.1

-0.4

-0.4

-0.8

0.5

0.4

0.4

-0.1

-0.8

-0.4

-0.1

0.6

0.3

-1.0

-0.9

-0.8

-0.4

-0.8

-0.2

-0.7

0.6

0.2

-0.4

-0.1

0.6

-0.2

-1.0

-0.9

-0.4

-0.3

-0.4

-1.2

-0.3

-1.3

-1.4

-1.4

-1.5

-1.4

-2.7

1.4

-1.4

-0.9

-5.0

-0.7

-0.7

-1.7

-8.2

-7.4

1.6

-1.0

-1.5

-0.3

-0.3

-1.5

1.1

-1.9

-1.7

-1.2

-0.7

1.4

1.4

-1.9

-2.9

-0.3

0.3

0.0

0.2

0.6

0.0

-0.2

-0.1

-0.4

0.1

-0.7

-0.2

-0.1

0.2

3.0

-0.6

0.3

-1.6

-0.6

-0.2

-0.7

0.6

-0.5

-1.2

0.1

0.5

1.0

0.1

-1.0

-1.4

-0.4

0.0

0.0

0.0

0.0

-1.7

0.0

0.0

0.0

0.0

0.0

0.0

-0.3

-1.9

-0.6

-1.0

1.0

0.0

-0.2

-0.2

0.0

-0.4

0.5

0.0

1.4

0.9

0.0

0.0

-0.8

0.9

0.1

-0.2

-0.1

-0.5

0.4

-0.1

0.2

0.8

1.2

0.2

0.6

-0.9

-0.8

0.1

0.5

0.9

-0.4

0.6

0.5

1.0

-0.6

0.7

0.7

0.1

0.6

1.0

2.8

0.6

-9.4

-5.6

-3.3

-3.7

-3.9

-3.9

-2.3

-7.9

0.6

-1.7

0.3

-5.0

-3.6

-5.0

-5.6

-11.1

-5.2

0.5

-3.8

-4.8

-0.7

-1.2

-3.2

4.1

-1.3

-5.1

-1.5

1.1

6.6

3.4

Country

Place of 
employment

 Sofia

 Prague

 Copenhagen

 Berlin

 Bonn

 Karlsruhe

 Munich

 Tallinn

 Athens

 Madrid

 Paris

 Dublin

 Rome

 Varese

 Nicosia

 Riga

 Vilnius

 Budapest

 Vallette

 The Hague

 Vienna

 Warsaw

 Lisbon

 Bucharest

 Ljubljana

 Bratislava

 Helsinki

 Stockholm

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

 London

 Culham

* Values may differ slightly from Table 4 due to rounding

EN 

38 

   EN 

 
Table 3.4
Changes in rent parities in the twelve months to 1st July 2010
Decomposition of the effects
(for staff)

Place of employment

Deletion of 
survey
2004

Introduction of 
survey
2010

Price index
2010

Dwelling structure

Brussels

Other cities

Total change

BG  Sofia

CZ  Prague

DK  Copenhagen

DE  Berlin

 Bonn

 Karlsruhe

 Munich

EE  Tallinn

EL  Athens

ES

 Madrid

FR  Paris

IE

IT

 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

 Helsinki

SE  Stockholm

UK  London

 Culham

-7.5

-4.3

-2.4

-0.2

-1.1

-0.5

2.2

-11.0

-1.6

0.3

-0.9

0.6

-3.3

0.2

-0.8

-12.8

-8.6

1.4

1.5

-3.4

0.3

1.7

-2.3

-3.4

-3.0

-6.0

0.1

1.9

3.9

0.9

-1.6

-1.5

1.8

1.1

0.6

1.0

0.2

-1.0

-1.4

-1.6

0.0

-1.9

0.0

-1.1

-1.2

0.0

-2.0

-4.2

-0.5

-3.0

-1.2

-2.5

-0.4

-1.9

-2.7

0.5

0.4

0.6

1.4

0.8

-6.8

-0.6

-0.2

-0.6

-0.6

-0.6

-0.6

1.4

2.4

-0.3

-1.4

-4.8

-0.5

-0.5

0.0

-2.6

-0.7

2.5

-0.5

-0.9

-0.1

0.3

-0.6

1.7

-0.1

-1.1

-0.8

-0.8

-1.7

-1.7

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

-15.2

-6.3

-0.8

0.3

-1.1

-0.1

1.8

-10.6

-0.6

-1.6

-2.4

-6.0

-3.8

-1.4

-2.0

-15.0

-11.0

-0.5

0.5

-7.1

-0.9

-0.5

-3.2

-3.5

-5.8

-6.6

-0.3

1.7

3.6

0.0

EN 

39 

   EN 

 
3.3.2  Major changes in the economic parities from 2009 to 2010 

Differences in the correction coefficients calculated with and without the rent element 

The rent and imputed rent parities, due to their associated high consumption weights (around 22% on 
average  across  the  EU)  influence  in  a  quite  significant  way the  global  parities  and  consequently  the 
correction  coefficients.  The  analysis  of  correction  coefficients  calculated  with  and  without  the  rent 
element  for  the  same  place  of  employment  makes  it  easier  to  isolate  the  effect  of  rent  differences 
separately from differences arising from other causes. 

The correction coefficient for rents (compared to Brussels =100) is very high in London (291.0), Paris 
(180.1), Copenhagen (157.4) and Rome (155.1), whereas they are quite low in Nicosia (62.8), Sofia 
(66.2), Valletta (76.4) and Tallinn (80.9).  

For  the  overall  correction  coefficient,  however,  the  range  is  smaller:  London  (134.4),  Copenhagen 
(134.1), Helsinki (119.4) compared to Sofia (62.7), Bucharest (69.5) and Vilnius (72.5). 

When rents are added to the computation, the correction coefficient is increased by 10% or more in 
London (+34.6%), Bucharest (19.7%), Budapest (+15.3%), Paris (14.7%), Warsaw (+13.8%), Prague 
(+12.1%), Rome (+10.7%), Madrid (+10.7%). By contrast the impact is negative in Nicosia (-7.4%), 
Karlsruhe  (-3.3%),  Bonn  (-3%),  Valletta  (-2.1%)  and  Varese  (-1.9%)  and  the  impact  is  near  zero  in 
Berlin and Lisbon. 

More details on the effect of rent on the 2010 correction coefficients are given in table 3.5. 

EN 

40 

   EN 

 
Table 3.5
Effect of rent on the correction coefficients - 2010
(for staff)

Weight

Correction coefficient

Rent effect

Without 
rent
[1]

797.1

734.6

701.4

802.0

802.0

802.0

802.0

774.6

861.1

799.1

767.5

814.7

818.2

845.0

810.5

752.5

758.8

733.7

793.7

806.5

725.4

753.9

766.9

734.6

748.2

757.8

714.5

729.6

691.6

764.5

Rent
[2]

203.0

265.4

298.7

198.0

198.0

198.0

198.0

225.5

138.9

200.9

232.5

185.3

181.8

155.0

189.4

247.4

241.2

266.4

206.3

193.5

274.6

246.1

233.1

265.4

251.8

242.3

285.5

270.5

308.4

235.5

Without 
rent
[3]

61.9

75.1

126.6

94.8

97.7

95.3

98.8

74.2

92.3

88.3

101.2

103.1

96.3

94.1

90.4

69.5

67.4

68.7

83.9

95.6

98.4

67.7

85.0

58.1

84.9

75.2

111.6

109.3

99.8

98.1

Rent
[4]

66.2

118.6

157.4

94.8

84.7

81.6

123.8

80.9

107.5

139.5

180.1

135.1

155.1

85.3

62.8

91.8

92.3

121.0

76.4

141.4

133.0

115.9

85.2

121.5

106.4

97.8

144.7

151.1

291.0

128.7

Overall
[5]

[5]/[3] (%)
[6]

62.7

84.2

134.1

94.8

94.7

92.1

103.8

75.6

94.8

97.7

116.1

109.1

106.6

92.3

83.7

74.3

72.5

79.2

82.2

104.1

106.2

77.1

85.0

69.5

89.7

80.0

119.4

118.6

134.4

104.5

1.3  

12.1  

5.9  

0.0  

-3.0  

-3.3  

5.0  

2.0  

2.8  

10.7  

14.7  

5.8  

10.7  

-1.9  

-7.4  

6.9  

7.7  

15.3  

-2.1  

9.0  

8.0  

13.8  

0.1  

19.7  

5.6  

6.4  

7.0  

8.5  

34.6  

6.5  

Place of 
employment

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  Vallette

NL  The Hague

AT  Vienna

PL  Warsaw

PT  Lisbon

RO  Bucharest

SI

 Ljubljana

SK  Bratislava

FI

 Helsinki

SE  Stockholm

UK  London

 Culham

EN 

41 

   EN 

 
 
8. 

EQUIVALENCE OF PURCHASING POWER OF EC PENSIONERS IN THE MEMBER STATES 

8.1. 

Economic parities and correction coefficients for pensioners 

The correction coefficients for pensioners with a reference date of 1 July 2010 have been calculated in 
accordance with the agreed methodology on the basis of the following information: 

(cid:190)  Parities for all goods and services,  except for rents, as used for the calculation of the correction 
coefficients  for  active  staff.  These  parities  are  based  on  bilateral  comparison  of  prices  of  about 
3000 goods and services between different capital cities and Brussels (for more details see point 
3.1 above). 

(cid:190)  Country  rent  parities:  For  calculating  country  rent  parities  the  following  procedure  has  been 
applied  in  most  of  the  countries.  Calculate  a  spatial  adjustment  factor  in  the  form  of 
national/capital ratio of market rents derived from an official database like CPI, household budget 
survey, housing register, etc. With the help of this adjustment factor transform the capital city rent 
parity  from  Article  64  estate  agency  rent  surveys  to  the  country  rent  parity.  The  following 
exceptions to this general rule were agreed with the respective NSIs: 

1.  Netherlands:  No  such  adjustment  factors  were  available  for  Netherlands,  for  which  average 
country  rents  were  compared  directly  with  the  average  rents  in  Belgium  (all  derived  from 
ECP-PPP rent surveys). A similar approach is used in Bulgaria and Romania. 

2.  Germany:  As  information  on  rents  for  four  German  cities  (Berlin,  Bonn,  Karlsruhe  and 

Munich) is available the ratio between the average of those cities and Berlin is used. 

3.  Denmark:  Due  to  the  specificities  of  the  rental  market  in  Copenhagen,  which  is  completely 
different from the market in the rest of the country, an estimate of the Copenhagen rent parity 
different  from  the  one  for  staff  is  used  as  basis  for  the  spatial  adjustment  factor.  The  new 
estimate is obtained averaging the staff rent parity with a rent ratio for the general population 
obtained from the NSI. 

4.  Malta  and  Estonia:  As  no  reliable  information  on  the  adjustment  factors  were  available  for 

Malta and Estonia a ratio equal 1 was used. 

Each National Statistical Institute is required each year to check and, if possible, to update their 
spatial adjustment factor.  

(cid:190)  Consumption  weights  for  the  pensioners  calculated  on  the  basis  of  a  wide  scale  family  budget 

survey carried out in 2002. 

The  details  of  the  economic  parities  calculation,  at  the  level  of  12  main  consumption  groups,  are 
shown  in  table  4.1  for  all  countries  apart  from  Belgium  and  Luxembourg.  This  table  also  includes 
information about the consumption weights by country and by expenditure groups. Table 4.2 presents 
the rent ratios used in 2009 and 2010. 

The  correction  coefficients  applicable  to  the  EC  pensioners  are  determined  on  the  basis  of  the 
relationships  between  the  economic  parities  and  the  exchange  rates  fixed  by  the  Commission  and 
specified in the Staff Regulations for the relevant countries. The correction coefficient operates  as a 
percentage adjustment to pensions (only for the pension rights acquired before 1 May 2004; being the 
correction coefficient 100% for the pension rights acquired from that date) to take account of the cost 
of living differences between Belgium and the Member States, except Luxembourg where, according 
to the Staff Regulations, a correction coefficient of 100% is applied. 

EN 

42 

   EN 

 
Table 4.1 (Continued on next page)

Economic parities of the 12 main expenditure groups for each duty station
1.07.2010
(for pensioners)

Expenditure 

BE

BG

Groups*

Weight

Weight

1

2

3

4

5

6

7

8

9

10

11

12

Rents

Total without rents
Global parity

99.0

26.4

75.8

176.3

119.5

36.1

164.0

17.2

118.2

9.4

74.8

83.3

132.4

867.6
1000.0

97.4

25.4

77.3

109.2

128.2

34.0

192.3

18.9

149.2

10.7

71.1

86.3

62.0

938.0
1000.0

Expenditure 

BE

FR

Groups*

Weight

Weight

1

2

3

4

5

6

7

8

9

10

11

12

Rents

Total without rents
Global parity

99.0

26.4

75.8

176.3

119.5

36.1

164.0

17.2

118.2

9.4

74.8

83.3

94.5

20.4

57.6

194.9

118.4

18.9

177.0

19.4

131.8

14.9

71.7

80.5

132.4

867.6
1000.0

148.8

851.2
1000.0

* For explanation of codes see table 3.1

Parity

1.238

1.616

1.398

0.659

1.037

1.201

1.373

1.394

1.582

0.316

0.937

1.492

0.544

1.252
1.161

Parity

0.975

0.964

0.892

1.338

1.041

0.912

1.011

1.151

1.048

0.959

1.119

1.122

1.504

1.019
1.076

CZ

Weight

96.6

25.1

76.6

117.0

127.1

33.7

190.6

18.7

147.9

10.6

70.4

85.5

70.2

929.8
1000.0

IE

Weight

85.9

22.4

68.2

214.5

113.1

30.0

169.6

16.7

131.6

9.4

62.7

76.1

172.8

827.2
1000.0

Parity

18.09

25.38

23.28

18.62

18.97

18.86

20.01

24.01

22.53

10.19

16.64

22.55

20.81

19.88
19.95

Parity

1.036

1.503

0.633

1.178

0.863

1.106

1.126

0.960

1.055

1.283

1.041

1.139

1.247

1.006
1.039

EN 

DK

Weight

87.1

22.7

69.1

203.9

114.6

30.4

171.9

16.9

133.4

9.6

63.5

77.1

161.7

838.3
1000.0

Parity

8.696

9.909

7.402

10.48

9.030

10.12

11.25

5.947

10.03

10.20

9.672

10.03

10.24

9.631
9.719

DE

Weight

66.9

22.4

76.6

187.1

130.4

32.0

163.8

16.4

149.8

1.2

68.0

85.5

136.5

863.5
1000.0

IT

CY

Weight

Parity

Weight

95.5

17.4

71.8

212.4

102.1

45.5

193.4

14.6

119.8

4.7

41.4

81.6

144.2

855.8
1000.0

0.953

1.069

0.985

1.140

1.043

1.001

0.944

1.069

1.025

0.984

0.997

1.037

1.329

0.981
1.023

69.0

23.1

79.0

161.9

134.5

33.0

168.9

16.9

154.4

1.2

70.1

88.1

109.7

890.3
1000.0

43 

Parity

0.971

0.949

0.921

1.023

0.901

1.029

0.999

0.768

1.004

1.398

0.873

0.925

1.057

0.951
0.965

Parity

0.901

1.155

0.860

0.679

0.863

0.965

0.838

0.470

1.187

0.803

0.890

0.881

0.683

0.896
0.867

EE

Weight

90.1

23.5

71.5

176.0

118.6

31.5

177.9

17.5

138.0

9.9

65.7

79.8

67.0

933.0
1000.0

LV

Weight

99.8

26.0

79.2

87.4

131.4

34.8

197.0

19.4

152.9

11.0

72.8

88.4

39.0

961.0
1000.0

Parity

11.20

15.96

13.82

14.62

10.67

11.20

10.85

12.70

13.20

4.376

10.49

12.08

13.90

11.81
11.99

Parity

0.535

0.824

0.519

0.390

0.429

0.538

0.501

0.508

0.609

0.235

0.475

0.480

0.429

0.500
0.493

EL

Weight

96.9

25.2

76.9

114.0

127.5

33.8

191.3

18.8

148.4

10.7

70.7

85.8

132.3

867.7
1000.0

Weight

106.3

19.3

79.9

123.0

113.7

50.6

215.3

16.3

133.4

5.2

46.1

90.8

47.1

952.9
1000.0

LT

Parity

0.927

1.229

1.074

0.743

0.921

0.841

1.007

1.045

1.061

0.667

0.922

0.976

1.051

0.928
0.943

Parity

2.224

3.414

2.338

2.298

2.022

2.825

2.588

2.023

2.631

0.870

2.243

2.373

2.660

2.354
2.376

ES

Weight

90.9

23.7

72.1

169.0

119.6

31.7

179.4

17.6

139.2

10.0

66.3

80.5

124.9

875.1
1000.0

Weight

103.7

22.4

63.3

116.1

130.0

20.7

194.3

21.3

144.7

16.4

78.8

88.4

65.4

934.6
1000.0

HU

Parity

0.822

0.838

0.886

0.969

0.962

0.726

0.899

1.148

0.969

0.762

0.871

0.898

1.075

0.888
0.910

Parity

212.7

237.6

202.9

170.4

167.2

179.8

239.0

240.2

223.3

90.11

176.3

183.9

197.9

196.8
196.6

EN 

 
  
Table 4.1 (Continuation)
Economic parities of the 12 main expenditure groups for each duty station
1.07.2010
(for pensioners)

PT

Weight

90.5

23.6

71.8

172.5

119.1

31.6

178.6

17.6

138.6

10.0

66.0

80.1

128.6

871.4
1000.0

Parity

0.813

0.850

0.843

0.724

0.884

0.847

1.022

0.881

0.898

0.969

0.711

0.871

0.721

0.873
0.851

RO

Weight

97.3

25.3

77.2

110.4

128.1

34.0

192.0

18.9

149.0

10.7

71.0

86.1

63.3

936.7
1000.0

Parity

2.646

2.866

2.712

2.013

2.066

2.684

3.095

3.006

2.973

0.889

2.327

3.290

2.481

2.604
2.585

SI

Weight

91.1

23.7

72.3

167.1

119.9

31.8

179.8

17.7

139.5

10.0

66.4

80.7

122.9

877.1
1000.0

Parity

0.855

0.961

0.960

0.811

0.817

0.689

0.794

0.711

0.954

0.643

0.813

0.924

0.865

0.842
0.844

Expenditure 

BE

MT

Groups*

Weight

Weight

1

2

3

4

5

6

7

8

9

10

11

12

Rents

Total without rents
Global parity

99.0

26.4

75.8

176.3

119.5

36.1

164.0

17.2

118.2

9.4

74.8

83.3

132.4

867.6
1000.0

96.4

25.1

76.5

118.3

126.9

33.7

190.3

18.7

147.7

10.6

70.3

85.4

71.6

928.4
1000.0

Expenditure 

BE

SK

Groups*

Weight

Weight

1

2

3

4

5

6

7

8

9

10

11

12

Rents

Total without rents
Global parity

99.0

26.4

75.8

176.3

119.5

36.1

164.0

17.2

118.2

9.4

74.8

83.3

132.4

867.6
1000.0

97.9

25.5

77.7

105.0

128.8

34.2

193.2

19.0

149.9

10.8

71.4

86.7

57.6

942.4
1000.0

* For explanation of codes see table 3.1

Parity

0.802

0.917

0.903

0.773

0.782

0.944

0.951

0.725

0.936

0.588

0.837

0.793

0.839

0.850
0.848

Parity

0.765

1.095

0.962

0.593

0.660

0.736

0.721

1.148

0.911

0.309

0.710

0.866

0.591

0.773
0.754

NL

Weight

88.7

23.1

70.4

188.6

116.8

31.0

175.2

17.2

135.9

9.8

64.7

78.6

145.6

854.4
1000.0

FI

Weight

88.7

23.1

70.4

188.5

116.8

31.0

175.2

17.2

135.9

9.8

64.7

78.6

145.5

854.5
1000.0

Parity

0.834

1.009

0.838

1.069

0.915

0.900

1.098

0.832

1.006

0.900

0.974

1.015

1.110

0.961
0.980

Parity

1.005

1.565

1.075

1.148

1.040

0.952

1.157

0.793

1.192

1.098

1.154

1.237

1.209

1.111
1.124

AT

Weight

87.9

22.9

69.7

196.2

115.7

30.7

173.5

17.1

134.7

9.7

64.1

77.8

153.5

846.5
1000.0

SE

Weight

88.0

22.9

69.8

195.1

115.9

30.7

173.8

17.1

134.8

9.7

64.2

77.9

152.4

847.6
1000.0

Parity

0.982

0.924

0.940

1.312

1.028

1.046

1.015

0.810

1.007

0.829

0.937

1.116

1.430

0.998
1.051

Parity

9.957

14.23

10.10

12.65

9.619

9.746

10.34

6.678

10.32

10.05

11.38

11.51

13.28

10.35
10.72

PL

Weight

97.8

25.5

77.6

105.4

128.8

34.1

193.1

19.0

149.9

10.8

71.4

86.6

58.0

942.0
1000.0

UK

Weight

83.1

21.6

65.9

240.3

109.4

29.0

164.0

16.1

127.3

9.1

60.6

73.6

200.1

799.9
1000.0

Parity

2.633

4.536

2.824

2.349

2.700

2.673

3.235

3.112

3.162

1.211

2.713

2.877

2.437

2.879
2.833

Parity

0.734

1.180

0.518

1.310

0.848

0.621

0.847

0.814

0.786

1.037

0.842

0.904

1.529

0.789
0.879

EN 

44 

EN 

 
  
 
Table 4.2

Rent ratios applied for the estimation of 
the pensioners rent parities

Country

Ratio applied in

2009

2010

Diff.

BE

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

0.91

0.48

0.62

1.07

1.00

1.00

0.89

0.70

0.76

0.84

0.78

0.99

0.60

0.60

0.52

1.00

0.64

0.96

0.46

0.77

0.41

0.74

0.55

0.76

0.84

0.59

0.91

0.38

0.62

1.03

1.01

1.00

0.89

0.70

0.76

0.84

0.78

0.99

0.60

0.76

0.52

1.00

0.71

0.98

0.46

0.77

0.42

0.74

0.55

0.76

0.84

0.59

0.00

-0.10

0.00

-0.04

0.01

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.16

0.00

0.00

0.07

0.02

0.00

0.00

0.01

0.00

0.00

0.00

0.00

0.00

* Country PPP rent (estimated from ECP data)

EN 

45 

   EN 

 
  
8.2. 

Purchasing power parities for pensioners – analysis of results 

In 2010, for 13 countries out of 25, the rent correction coefficient (ratio between the rent parity and the 
exchange  rate)  is  under  100.  This  means  that  the  average  rents  are  lower  in  these  places  than  in 
Belgium. 

For  8  places  out  of  25  the  correction  coefficient  without  rent  is  higher  than  the  global  correction 
coefficient.  This  means  that,  for  these  places,  the  rents  lead  to  a  reduction  of  global  correction 
coefficient. 

EN 

46 

   EN 

 
 
 
8.3. 

Comparison of correction coefficients for staff and pensioners 

Table  4.5  compares  the  pensioners’  correction  coefficients  with  those  for  active  staff.  Among  all 
Member States, Denmark has the highest country-based CC and almost the highest capital-based CC 
(the  value  for  London,  UK  is  slightly  higher).  The  biggest  differences  between  capital  CCs  and 
country CCs can be observed in the United Kingdom, Romania, Hungary and France. There are also 
big  differences  in  Poland,  Bulgaria,  Netherlands  and  Czech  Republic.  In  Austria,  Germany,  Greece 
and Portugal the two CCs are nearly at the same level.  

In all countries except Germany, Estonia, Cyprus, Malta and Portugal the country CCs are lower than 
capital CCs. Without rents, the two sets of CCs are closer. 

It  should  be  mentioned  that  the  Staff  Regulations  set  out  specific  rules  for  the  application  of  the 
pensioner CC. 

EN 

47 

   EN 

 
 
Table 4.5
Pensioners correction coefficients and Staff correction coefficients

Correction coefficients for pensioners

Correction coefficients for staff

Country

 without 
rents

BE

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

100.0

64.0

77.2

129.3

95.1

75.5

92.8

88.8

101.9

100.6

98.1

89.6

70.4

68.2

68.6

85.0

96.1

99.9

69.2

87.3

59.6

84.2

77.3

111.1

108.7

97.4

rents

100.0

27.8

80.8

137.4

105.7

88.9

105.1

107.5

150.4

124.7

132.9

68.3

60.5

77.1

69.0

83.9

111.0

143.0

58.6

72.1

56.7

86.5

59.1

120.9

139.5

188.7

Total

Capitals

100.0

Brussels

59.4

77.5

 Sofia

 Prague

130.5

 Copenhagen

96.5

76.6

94.3

91.0

107.6

103.9

102.3

86.7

69.4

68.8

68.6

84.8

98.0

 Berlin

 Tallinn

 Athens

 Madrid

 Paris

 Dublin

 Rome

 Nicosia

 Riga

 Vilnius

 Budapest

 Vallette

The Hague

105.1

 Vienna

68.1

85.1

59.1

84.4

75.4

112.4

112.6

108.5

 Warsaw

 Lisbon

 Bucharest

 Ljubljana

 Bratislava

 Helsinki

 Stockholm

 London

 without 
rents

100.0

61.9

75.1

126.6

94.8

74.2

92.3

88.3

101.2

103.1

96.3

90.4

69.5

67.4

68.7

83.9

95.6

98.4

67.7

85.0

58.1

84.9

75.2

111.6

109.3

99.8

rents

100.0

66.2

118.6

157.4

94.8

80.9

107.5

139.5

180.1

135.1

155.1

62.8

91.8

92.3

121.0

76.4

141.4

133.0

115.9

85.2

121.5

106.4

97.8

144.7

151.1

291.0

Total

100.0

62.7

84.2

134.1

94.8

75.6

94.8

97.7

116.1

109.1

106.6

83.7

74.3

72.5

79.2

82.2

104.1

106.2

77.1

85.0

69.5

89.7

80.0

119.4

118.6

134.4

EN 

48 

   EN 

 
5. 

INFORMATION ABOUT WORKING TIME 

Eurostat also collects statistical information on differences in the working hours of national officials in 
all  Member  States.  Information  about  statutory  or  contractual  weekly  working  hours  in  central 
governments (Table 5.1), number of days of annual leave (Table 5.2) and number of public holidays 
per year (Table 5.3) are shown below. In all these tables the situation in July 2010 has been compared 
with that in July 2009. 

EN 

49 

   EN 

 
Statutory or contractual weekly working hours in central governments 

Table 5.1

Country

Weekly working hours

Remarks

BE

DE

ES

FR

IT

LU

NL

UK (London)

UK (Country)

July 2009

July 2010

38

41

38

41

37:30' - 40

37:30' - 40

40 for vulnerable groups

35

36

40

36

36

37

35

36

40

36

36

37

2009: 7 depts, 2010: 8 depts

2009: 7 depts, 2010: 8 depts

Table 5.2

Number of days annual leave

Country

Number of days

Remarks

BE

DE

ES

FR

IT

LU

NL

UK

July 2009

July 2010

26 - 33

26 - 30

26-33

Depends on age

26-30

Depends on age 

28-32

28-32

Depends on age

25

32

32-36

23 - 27

25

32

2 days bonus maximum

Under 3 years of service: 30 days

32-36

Depends on age

23-27

Depends on age

 22 - 30

22-30

Differences between Ministries. Depends on age and 
grade

EN 

50 

   EN 

 
Number of public holidays per year (statutory, contractual, etc)

Table 5.3

Country

Number of days

Remarks

July 2009

July 2010

BE

DE

ES

FR

IT

LU

NL

UK

13

7

14

10

11

11

8

13

5

14

10

11

11

8

Time off when the public holiday falls on Saturday or 
Sunday

(7 incl. Saturdays) Berlin 

Time off when the public holiday falls on Sunday

Time off when the public holiday falls on Sunday

10,5-11

10,5-11

Time off when the public holiday falls on Saturday or 
Sunday

Information collected about retirement age in central government (situation at July 2010) is shown in 
Table 5.4. 

Table 5.4

Age of retirement and early retirement

Country

Age

Remarks

Retirement

Early retirement

BE

DE

ES

FR

IT

LU

NL

UK

65

65

65-70

60

65-67

60

65

60

60

63

60-64

51-55

58-61

57

60

50

Possibility of part-time from 55 years

Variations of retirement depending on age

Early retirement: at least 30 years of service

Variations of retirement depending on age and sex

40 years of service

EN 

51 

   EN