COMMISSION STAFF WORKING DOCUMENT Eurostat Report on the annual adjustment of remuneration and pensions of EU officials Accompanying the document Proposal for a Council Regulation adjusting with the effect from 1 July 2012 the remuneration and pensions of the officials and other servants of the European Union and the correction coefficients applied thereto
Date: 2012-12-05
Institutions: European Commission
Subjects: European official, Eurostat, pay, servant (EU), social-security benefit, wage determination

EUROPEAN 
COMMISSION 

Brussels, 5.12.2012  
SWD(2012) 427 final 

COMMISSION STAFF WORKING DOCUMENT 

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

Accompanying the document 

Proposal for a Council Regulation 

adjusting with the effect from 1 July 2012 the remuneration and pensions of the officials 
and other servants of the European Union and the correction coefficients applied thereto

{COM(2012) 754 final} 
{SWD(2012) 428 final} 

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TABLE OF CONTENTS 

COMMISSION STAFF WORKING DOCUMENT Eurostat Report on the annual adjustment 
of remuneration and pensions of EU officials............................................................................ 4 

Executive Summary ................................................................................................................... 4 

Introduction ................................................................................................................................ 5 

1. 

1.1. 

1.2. 

2. 

3. 

4. 

4.1. 

4.2. 

1. 

Evolution of the purchasing power of national officials.............................................. 6 

Specific Indicator ......................................................................................................... 6 

Control Indicator .......................................................................................................... 6 

Changes in the cost of living in Brussels (Brussels International Index) .................... 7 

Adjustment of remuneration and pensions in Belgium and Luxembourg ................... 8 

Adjustment of remuneration and pensions outside Belgium and Luxembourg........... 9 

Correction coefficients for staff outside Belgium and Luxembourg ........................... 9 

Correction coefficients for pensioners outside Belgium and Luxembourg ............... 13 

Evolution of purchasing power of national officials.................................................. 18 

1.1. 

General remarks on the calculation of the specific indicator..................................... 18 

1.1.1.  Elements of remuneration .......................................................................................... 18 

1.1.2.  Net remuneration........................................................................................................ 18 

1.1.3.  Reference period ........................................................................................................ 18 

1.1.4.  Reference population ................................................................................................. 19 

1.1.5.  Sample of family types .............................................................................................. 19 

1.1.6.  Function groups.......................................................................................................... 19 

1.1.7.  Sample of grades ........................................................................................................ 19 

1.1.8.  Sample of countries.................................................................................................... 20 

1.1.9.  Calculation of country specific indicator ................................................................... 20 

1.2. 

1.3. 

1.4. 

1.5. 

2. 

Specific indicator - results by functional groups........................................................ 21 

Remuneration and taxes ............................................................................................. 21 

Cumulative specific indicators................................................................................... 22 

Control Indicators ...................................................................................................... 23 

Changes in the cost of living in Brussels ................................................................... 24 

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3. 

3.1. 

3.2. 

3.3. 

Equivalence of purchasing power of EC officials in the Member States .................. 26 

Economic parities and correction coefficients ........................................................... 26 

Rents and rent parities................................................................................................ 27 

Purchasing power parities - analysis of results .......................................................... 35 

3.3.1.  Major changes in the economic parities from 2011 to 2012...................................... 35 

4. 

4.1. 

4.2. 

4.3. 

Equivalence of purchasing power of EC pensioners in the Member States .............. 40 

Economic parities and correction coefficients for pensioners ................................... 40 

Purchasing power parities for pensioners – analysis of results.................................. 44 

Comparison of correction coefficients for staff and pensioners ................................ 45 

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COMMISSION STAFF WORKING DOCUMENT 

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

Accompanying the document 

Proposal for a Council Regulation 

adjusting with the effect from 1 July 2012 the remuneration and pensions of the officials 
and other servants of the European Union and the correction coefficients applied thereto 

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 2011 – July 2012 the global specific indicator (average change in real net 
remuneration in the sample of 8 countries) is 98.9 (-1.1 %). Details are provided in Table 1. 

For  the  same  period,  the  Brussels  International  Index  (cost  of  living  measured  for  the  EU 
officials) is 102.8 (+2.8%). Details are provided in Table 3.  

As a consequence the adjustment of the nominal net remuneration and pensions 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 +1.7%. 

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 2012. 

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 C3  
Statistics for Administrative Purposes 
BECH – A2/004,  
Bâtiment Jean Monnet 
L-2920 Luxembourg 
Tel.: (352) 4301-34792 
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  2011  to  June  2012 
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  2011  expressed  in 
purchasing power parities. The global specific indicator (average change in real net 
remuneration) for the year 2012 is 98.9 (-1.1%).  

Table 1

Change in the net remuneration of central government civil servants
July 2011 - July 2012

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

(%)

2.6

19.6

9.0

13.9

12.1

0.3

4.3

13.6

75.4

(%)

3.4

26.0

11.9

18.4

16.0

0.4

5.7

18.0

100.0

(%)

2.5

4.3

-3.0

1.8

0.0

2.5

-1.9

0.9

1.2

(%)

2.2

2.0

1.8

2.3

3.6

2.6

2.5

2.4

2.4

(%)

0.3

2.3

-4.7

-0.5

-3.5

-0.1

-4.3

-1.5

-1.1

0.0

0.6

-0.6

-0.1

-0.6

0.0

-0.2

-0.3

-1.1

¹ Basis: GDP expressed in PPP, 2011

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. 

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These  data  serve  as  control  indicators  for  individual  countries  and  a  weighted 
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 2012 with those 
of per capita real wage bills for 2011, where the respective values for 2011 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 (previous year = 100)

Country

Real gross specific 
indicator
[1]

BE

DE

ES

FR

IT

LU

NL

UK

Total

*Eurostat estimates. 

99.8

103.1

96.6

99.9

96.5

99.8

97.6

98.5

99.4

Control indicator * 

Difference (%)

[2]

100.3

97.4

96.8

99.6

95.9

102.6

96.9

99.7

98.0

[3]

0.5

-5.6

0.2

-0.3

-0.7

2.8

-0.8

1.2

-1.4

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 2012 annual salary 
adjustment are set out in table 3. The table shows that the cost of living for the EU 

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officials  in  Brussels  during  the  period  June  2011  –  June  2012  has  increased,  on 
average by 2.8%. 

Table 3

Changes in the Brussels International Index (BII)
June 2011 - June 2012

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

102.7
102.0
101.4
103.9
101.6
100.6
102.0
98.5
103.2
103.0
102.8
103.7
102.6
103.5
102.8

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

102.8 ×

98.9

                                                        — 100 = 1.7%

100

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4. 

ADJUSTMENT  OF  REMUNERATION  AND  PENSIONS  OUTSIDE  BELGIUM  AND 
LUXEMBOURG 

4.1. 

Correction coefficients for staff outside Belgium and Luxembourg1 

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 similar 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.  

1 

A separate report is prepared concerning correction coefficients for duty stations outside the European 
Union, to which the additional provisions of Annex X to the Staff Regulations apply. 

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Table 4

Changes in the economic parities in the twelve months to 1st July 2012
(for staff)

Country

Parity

Parity

Change

Place of employment

1.7.2011

1.7.2012

BE/LU Brussels/Luxembourg

1.000

1.000

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

SE

Helsinki

Stockholm

UK London

Culham

1.186

20.74

10.01

0.937

0.930

0.922

1.032

0.754

0.922

0.974

1.164

1.096

1.048

0.919

0.830

0.528

2.511

222.9

0.827

1.028

1.050

3.220

0.840

3.060

0.862

0.788

1.205

11.42

1.152

0.883

1.143

20.80

10.06

0.958

0.941

0.938

1.064

0.776

0.905

0.971

1.177

1.106

1.042

0.934

0.841

0.541

2.467

225.3

0.833

1.053

1.064

3.180

0.835

3.064

0.853

0.797

1.221

11.61

1.181

0.899

HR Zagreb

5.816

5.911

(%)

0.0%

-3.6%

0.3%

0.5%

2.2%

1.2%

1.8%

3.1%

2.9%

-1.9%

-0.3%

1.1%

0.9%

-0.6%

1.7%

1.4%

2.5%

-1.7%

1.1%

0.7%

2.5%

1.3%

-1.3%

-0.6%

0.1%

-1.0%

1.1%

1.4%

1.6%

2.5%

1.8%

1.6%

Implicit price
index

2.8

-0.9

3.1

3.3

5.1

4.0

4.6

6.0

5.8

0.9

2.5

3.9

3.7

2.2

4.5

4.2

5.4

1.0

3.9

3.5

5.3

4.2

1.5

2.2

2.9

1.7

3.9

4.2

4.5

5.4

4.6

4.5

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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 2012 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 2012
(for staff)

Country

Parity

Exchange rate

[2]

1.000

1.956
25.81
7.433
1.000
1.000
1.000
1.000
1.000
1.000
1.000

1.000
1.000
1.000
1.000
1.000
0.697
3.453
287.8
1.000

1.000
1.000
4.287
1.000
4.451
1.000
1.000
1.000
8.801
0.799
0.799

7.517

Place of employment

[1]

BE/LU Brussels/Luxembourg

1.000

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
SI
Ljubljana
SK Bratislava
FI Helsinki
SE Stockholm
UK London
Culham

HR Zagreb

1.143
20.80
10.06
0.958
0.941
0.938
1.064
0.776
0.905
0.971

1.177
1.106
1.042
0.934
0.841
0.541
2.467
225.3
0.833

1.053
1.064
3.180
0.835
3.064
0.853
0.797
1.221
11.61
1.181
0.899

5.911

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Correction 
coefficient
100 * [1] / [2]

100.0

58.4
80.6
135.3
95.8
94.1
93.8
106.4
77.6
90.5
97.1

117.7
110.6
104.2
93.4
84.1
77.6
71.5
78.3
83.3

105.3
106.4
74.2
83.5
68.8
85.3
79.7
122.1
131.9
147.8
112.5

78.6

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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  1st,  2012.  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 2012
(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
1.7.2011
1.000
1.137
19.31
9.732
0.954
0.766
0.910
0.915
1.085
1.046
1.000
0.854
0.498
2.441
195.2
0.846
0.973
1.041
2.853
0.839
2.614
0.836
0.735
1.130
10.79
0.931

Parity
1.7.2012
1.000
1.122
19.24
9.461
0.966
0.780
0.890
0.909
1.092
1.045
0.974
0.874
0.521
2.401
197.7
0.837
1.009
1.032
2.845
0.828
2.669
0.812
0.735
1.138
10.90
0.950

Change
(%)
0.0%
-1.4%
-0.4%
-2.8%
1.2%
1.8%
-2.2%
-0.6%
0.7%
-0.1%
-2.6%
2.3%
4.8%
-1.6%
1.3%
-1.0%
3.7%
-0.8%
-0.3%
-1.3%
2.1%
-2.9%
0.0%
0.7%
1.0%
2.1%

Implicit price
index
2.8
1.4
2.4
-0.1
4.1
4.7
0.6
2.1
3.5
2.7
0.2
5.1
7.7
1.1
4.1
1.7
6.6
1.9
2.5
1.5
5.0
-0.1
2.8
3.5
3.9
4.9

HR

5.503

5.553

0.9%

3.7

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 2012
(for pensioners)

Country

BE/LU

Parity

[1]
1.000

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

HR

1.122
19.24
9.461
0.966
0.780
0.890
0.909
1.092

1.045
0.974
0.874
0.521
2.401
197.7
0.837
1.009

1.032
2.845
0.828
2.669
0.812
0.735
1.138
10.90
0.950

5.553

Exchange rate

[2]
1.000

1.956
25.81
7.433
1.000
1.000
1.000
1.000
1.000

1.000
1.000
1.000
0.697
3.453
287.8
1.000
1.000

1.000
4.287
1.000
4.451
1.000
1.000
1.000
8.801
0.799

7.517

Correction 
coefficient
100 * [1] / [2]
100.0

57.4
74.6
127.3
96.6
78.0
89.0
90.9
109.2

104.5
97.4
87.4
74.9
69.5
68.7
83.7
100.9

103.2
66.4
82.8
60.0
81.2
73.5
113.8
123.8
119.0

73.9

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ANNEX 

Eurostat Report on the Annual Adjustment of Remuneration and 
Pensions  

Appendix 1 to the  

Explanations and statistical analyses 
Reference period: 
Year to 1 July 2012 

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Introduction 

This document is an appendix to the 2012 Eurostat report on the annual adjustment of remuneration 
and pensions. While the principal 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 and validated by the 
responsible  authorities  in  the  Member  States.  For  any  information  concerning  this  appendix,  please 
contact Eurostat in Luxembourg: 

Eurostat, Unit C3 
BECH – A2/004 
Bâtiment Jean Monnet 
L-2920 Luxembourg 
tel.: (+352) 4301-34792 
Email: estat-a64ia65@ec.europa.eu 

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1. 

EVOLUTION OF PURCHASING POWER OF NATIONAL OFFICIALS 

1.1. 

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 
complemented with practical procedures2. 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. 

1.1.1.  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,  
all allowances and bonuses (e.g. general premiums, child benefit, family allowances), 
non-pensionable lump-sum payments (e.g. annual holiday pay, Christmas bonus). 

Not to be included: 
• 
• 
• 

regional allowances granted to compensate for 'cost-of-living' differences, 
increase due to promotion or seniority, 
person-specific special allowances, for example individual bonuses for exceptional 

performance. 

1.1.2.  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. 

2 

The  latest  version  of  the  relevant  methodology  manuals  are  available  as  documents  A65/08/08, 
A64/11/27, and A64/11/28. 

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1.1.3.  Reference period 

In  order  to  calculate  the  specific  indicators  for  the  year  (t)  the  remuneration  of  central  government 
civil servants on a fixed month 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 2011 sent in 2011 and re-sent in 2012), 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). 

1.1.4.  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; 

1.1.5. 

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%.  

1.1.6.  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. 

•  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. 

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1.1.7. 

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%. 

1.1.8. 

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. 

1.1.9.  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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1.2. 

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 2012 (1.7.2011 = 100)

Country

Nominal change

Real change

AD

AST

Total

AD

AST

Total

BE Gross

Net

DE Gross

Net

ES Gross

Net

FR Gross

Net

IT

Gross

Net

LU Gross

Net

NL Gross

Net

UK Gross

Net

102.0

102.4

105.4

104.4

98.4

96.2

101.8

101.4

100.0

100.0

102.4

102.5

100.0

97.7

100.3

100.3

102.0

102.5

105.0

104.2

98.1

97.8

102.3

101.9

100.0

100.0

102.3

102.4

100.0

98.5

101.0

101.0

102.0

102.5

105.2

104.3

98.3

97.0

102.2

101.8

100.0

100.0

102.4

102.5

100.0

98.1

100.9

100.9

Total Gross

Net

101.7

101.0

101.7

101.4

101.8

101.2

1.3. 

Remuneration and taxes 

99.8

100.2

103.3

102.4

96.7

94.5

99.5

99.1

96.5

96.5

99.8

99.9

97.6

95.3

97.9

97.9

99.3

98.6

99.8

100.3

102.9

102.2

96.4

96.1

100.0

99.6

96.5

96.5

99.7

99.8

97.6

96.1

98.6

98.6

99.4

99.0

99.8

100.3

103.1

102.3

96.6

95.3

99.9

99.5

96.5

96.5

99.8

99.9

97.6

95.7

98.5

98.5

99.4

98.9

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 2012

Country

Gross remuneration Net remuneration

12 Months HICP

BE

DE

ES

FR

IT

LU

NL

UK

Total

102.0

105.2

98.3

102.2

100.0

102.4

100.0

100.9

101.8

102.5

104.3

97.0

101.8

100.0

102.5

98.1

100.9

101.2

102.2

102.0

101.8

102.3

103.6

102.6

102.5

102.4

102.4

1.4. 

Cumulative specific indicators 

Table 1.3 illustrates the changes in the remuneration of central government civil servants since 2003. 
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 
2003-2012 the real net specific indicator for the European Union has decreased by 4.7%. 

EN 

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Table 1.3

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

125.5

112.6

119.5

118.8

119.6

130.8

110.7

122.4

127.4

108.9

116.2

117.9

115.5

121.4

114.7

122.6

124.0

117.3

126.1

118.7

123.7

127.8

116.5

128.3

Total

118.2

116.2

101.9

95.9

94.3

100.0

96.0

102.8

95.6

85.5

94.8

102.7

92.8

92.1

99.2

93.4

95.0

98.4

95.5

95.3

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

1.5. 

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 2003-2012. 

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Table 1.4
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.

101.9

95.9

94.3

100.0

96.0

102.8

95.6

85.5

94.8

Control indicator * 

Difference (% )

[2]

111.2

99.0

110.8

104.2

97.7

117.6

106.7

106.2

103.6

[3]

9.1

3.3

17.5

4.3

1.7

14.3

11.5

24.2

9.3

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2. 

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: 

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

1) 
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  2004  (ie. 
2003 = 100). 

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Table 2.1
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

2011

2012

101.9

102.2

102.1

101.4

104.4

100.9

102.4

103.6

102.8

 * Brussels International Index (BII)

101.9

104.1

106.3

107.8

112.6

113.6

116.3

120.5

123.9

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3. 

EQUIVALENCE OF PURCHASING POWER OF EC OFFICIALS IN THE MEMBER STATES 

3.1. 

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  2012  annual  review,  new  parities  obtained  from  price  surveys  have  been  integrated  for  the 
following groups: 

• Services (survey 2011-1) 
• Furniture & Health (survey 2011-2) 

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). 
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. 

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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, 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. 

3.2. 

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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Table 3.1 (Continued on next page)
Economic parities of the 12 main expenditure groups for each duty station
1.07.2012
(for staff)

Expenditure 

Groups

1

2

3

4

5

6

7

8

9

10

11

12

Rents

Total w ithout rents
Global parity

Expenditure 

Groups

1

2

3

4

5

6

7

8

9

10

11

12

Rents

Total w ithout rents
Global parity

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

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

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

Parity

1.258

1.522

1.298

0.971

1.071

1.163

1.531

1.113

1.278

0.334

0.880

1.529

0.978

1.192
1.143

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

Parity

19.05

24.52

21.07

25.65

18.54

16.86

22.13

23.45

20.59

10.40

13.19

20.60

27.77

18.91
20.80

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

Parity

9.094

10.55

8.026

11.60

7.940

9.29

10.429

5.736

9.155

10.82

10.83

10.62

11.94

9.453
10.06

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

Parity

0.955

0.956

0.880

0.945

0.919

0.966

1.098

0.659

1.014

1.321

0.863

0.899

0.961

0.958
0.958

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

Parity

0.975

0.930

0.856

0.863

0.937

0.730

1.104

0.667

1.033

1.321

0.933

0.890

0.844

0.969
0.941

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

Parity

0.965

0.936

0.878

0.862

0.920

0.932

1.106

0.652

0.989

1.321

0.915

0.918

0.826

0.972
0.938

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

Parity

0.925

0.941

0.892

1.236

0.965

0.893

1.154

0.752

1.054

1.321

1.016

0.966

1.316

1.003
1.064

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

Parity

0.792

1.051

0.900

0.730

0.738

0.688

0.929

0.601

0.853

0.306

0.719

0.769

0.768

0.778
0.776

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

Parity

0.917

1.078

0.916

0.853

0.880

0.797

1.047

1.047

0.961

0.621

0.841

0.850

0.963

0.895
0.905

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

Parity

0.801

0.858

0.873

1.156

0.908

0.701

1.072

1.227

1.002

0.781

0.825

0.899

1.299

0.895
0.971

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

Parity

0.965

1.041

1.006

1.555

1.098

0.944

1.092

0.899

1.072

0.986

1.062

1.076

1.797

1.031
1.177

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

Parity

1.014

1.541

0.758

1.256

0.908

1.104

1.175

0.838

1.020

1.353

1.058

1.321

1.345

1.051
1.106

EN 

30 

EN 

 
  
 
Expenditure 

Groups

1

2

3

4

5

6

7

8

9

10

11

12

Rents

Total w ithout rents
Global parity

Expenditure 

Groups

1

2

3

4

5

6

7

8

9

10

11

12

Rents

Total w ithout rents
Global parity

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

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

Table 3.1 (Continuation)
Economic parities of the 12 main expenditure groups for each duty station
1.07.2012
(for staff)

IT-Rom e

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

Parity

0.968

1.106

0.962

1.209

0.943

1.045

0.976

0.925

1.027

0.997

0.944

0.983

1.428

0.957
1.042

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

Parity

1.026

0.982

0.971

0.790

1.026

1.067

1.008

0.927

1.045

0.997

0.862

0.969

0.816

0.966
0.934

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

Parity

0.917

1.073

0.849

0.636

0.892

1.028

1.086

0.397

1.052

0.833

0.924

0.832

0.601

0.919
0.841

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

Parity

0.557

0.761

0.590

0.545

0.461

0.530

0.610

0.475

0.550

0.229

0.508

0.531

0.596

0.525
0.541

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

Parity

2.378

3.197

2.830

2.627

2.333

2.516

2.880

1.834

2.653

0.885

1.913

2.326

2.811

2.372
2.467

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

Parity

217.7

241.0

225.0

283.8

183.0

182.0

249.1

248.7

220.8

87.87

150.0

191.8

322.6

200.1
225.3

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

793.7

Parity

0.831

0.986

0.751

0.774

0.840

0.922

1.081

0.678

0.825

0.622

0.801

0.819

0.753

0.857
0.833

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

Parity

0.832

1.020

0.866

1.229

0.937

1.108

1.149

1.006

1.032

0.919

1.032

1.008

1.297

0.994
1.053

Parity

0.997

0.934

0.894

1.201

0.967

0.996

1.136

0.789

1.066

0.874

0.983

1.039

1.279

0.999
1.064

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

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

Parity

2.641

4.072

2.927

4.105

2.707

2.313

3.356

2.548

3.167

1.240

2.618

2.885

4.609

2.827
3.180

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

Parity

0.795

0.879

0.769

0.771

0.852

0.815

1.090

0.916

0.904

0.981

0.723

0.767

0.765

0.858
0.835

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

Parity

2.701

2.865

3.242

3.994

2.554

2.849

3.424

2.194

2.951

0.929

1.890

3.513

4.753

2.665
3.064

EN 

EN 

 
  
 
Table 3.1 (Continuation)
Economic parities of the 12 main expenditure groups for each duty station
1.07.2012
(for staff)

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

Parity

0.862

0.968

0.820

0.901

0.803

0.727

0.945

0.723

0.954

0.646

0.629

0.892

0.923

0.832
0.853

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

Parity

0.792

1.019

0.835

0.873

0.695

0.650

0.786

0.997

0.844

0.334

0.658

0.827

0.930

0.760
0.797

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

Parity

1.083

1.671

1.049

1.439

1.043

0.962

1.221

0.698

1.146

1.123

1.166

1.265

1.529

1.129
1.221

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

Parity

9.852

14.09

9.864

14.22

10.182

9.377

11.29

6.438

10.49

10.23

12.04

11.42

15.09

10.64
11.61

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

Parity

0.771

1.283

0.625

2.183

0.934

0.672

0.979

0.789

0.878

1.119

0.858

0.991

2.601

0.869
1.181

Weight

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

Parity

0.769

1.285

0.623

0.982

0.915

0.672

0.950

0.789

0.879

1.119

0.860

0.934

1.069

0.853
0.899

HR-Zagreb

Weight

161.0

29.6

60.9

192.3

84.0

13.6

131.4

24.0

111.1

13.7

112.9

65.7

1000.0

139.2
860.8

Parity

6.113

7.661

5.813

6.137

5.117

4.753

6.999

4.708

5.876

4.766

4.976

5.594

5.911

6.967
5.699

Consum ption groups:

1. Food and non-alcoholic beverages

2. Alcoholic beverages and tobacco

3. Clothing and footw ear

4. Housing, w ater, 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

Expenditure 

Groups

1

2

3

4

5

6

7

8

9

10

11

12

Rents

Total w ithout rents
Global parity

Expenditure 

Groups

1

2

3

4

5

6

7

8

9

10

11

12

Rents

Total w ithout rents
Global parity

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

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

EN 

32 

EN 

 
  
Table 3.2 (Continued on next page)
Changes in the average rents of accommodation in the twelve months to 1st July 2012
(Values expressed in Euro, except local currencies: CZ, DK, LV, LT, HU, PL, S E, 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)

1619

1641

BE Brussels

BG Sofia

CZ

Prague

2011

2012

2011

2012

2011

2012

DK Copenhagen

2011

DE Berlin

Bonn

Karlsruhe

Munich

EE

T allin

EL Athens

ES Madrid

FR Paris

IE Dublin

IT

Rome

Varese

CY Nicosia

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

1432

1234

1283

1273

776

638

31750

32611

13943

15292

1249

1302

1134

1185

1019

1030

1680

1848

1550

1417

2420

2405

1463

1527

1770

1703

915

902

768
698

611

626

6679

7833

412

505

820

769

1091

1071

938

932

991

1013

1014

1005

397

359

24450

23278

764

783

291

273

18300

17667

819

838

9371

10583

780

873

960

1013

848

872

780

777

1269

1395

939

808

1820

1853

1388

1288

748

716

631
591

700

776

675

695

607

613

973

1092

714

639

1063

1005

590

557

504
488

575

665

1058

1005

1181

1193

Rent value for dwelling type for year in question is average of reported values.  

EN 

33 

   EN 

 
 
Table 3.2 (Continued from previous page)

Changes in the average rents of accommodation in the twelve months to 1st July 2012
(Values expressed in Euro, except local currencies: CZ, DK, LV, LT, HU, PL, S E, 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)

1619

1641

971

913

1283

1273

718

856

429138

378170

878

833

1449

1712

1500

1548

5333

5872

1133

1216

1113

1035

1051

1066

21193

22264

BE Brussels

LV

Riga

LT

Vilnius

HU Budapest

MT Valletta

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

NL T he Hague

2011

AT Vienna

PL Warsaw

PT

Lisbon

RO Bucharest

SI

Ljubljana

SK Bratislava

FI

Helsinki

SE

Stockholm

UK London

Culham

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

991

1013

2830

2553

2114

1939

3078

2806

1136
1152

1014

1005

535

650

644

618

1172

1360

1071

1152

4272

4186

725

678

768

833

775

784

808

869

16168

16808

819

838

2196

2033

261906

226005

1322

1384

2297

2137

918
939

764

783

361

454

898

1028

854

889

557

540

632

663

11315

12232

611

626

1516

1528

160156

137679

452

437

2703

2535

478

483

539

537

1003

1064

1646

1627

731
768

Rent value for dwelling type for year in question is average of reported values.  

EN 

34 

   EN 

 
 
 
Changes in the average rents of accommodation in the twelve months to 1st July 2012
(Values expressed in Euro, except local currencies: CZ, DK, LV, LT, HU, PL, S E, UK)

Table 3.2 (Continued on next page)

Country

Non-detached houses

Detached houses

Place of employment

(140-160m²)

(110-130m²)

(80-100m²)

(190-220m²)

(150-180m²)

(110-140m²)

BE Brussels

BG Sofia

CZ

Prague

2011

2012

2011

2012

2011

2012

DK Copenhagen

2011

DE Berlin

Bonn

Karlsruhe

Munich

EE T allin

EL Athens

ES Madrid

FR Paris

IE Dublin

IT

Rome

Varese

CY Nicosia

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

1665

1733

1337

1385

1100

1114

1845

1902

1469

1513

2342

2340

867

841

37889

34750

15917

17317

1353

1420

1179

1201

1181

1239

1827

1978

822

984

1750

1614

1289

1156

891
864

52750

48500

22583

24167

1921

2021

1602

1616

1731

1785

2873

2948

1246

1583

1580

1588

1935

2058

2279

2136

1907

1788

1328
1343

Rent 
Parity

0.587

0.500

28.87

27.77

11.87

11.94

0.954

0.961

0.849

0.844

0.825

0.826

1.281

1.316

0.782

0.768

1.046

0.963

1.364

1.299

1.798

1.797

1.350

1.345

1.512

1.428

0.837

0.816

0.628
0.601

Rent value for dwelling type for year in question is average of reported values.  
Rent parity uses a six year model of these averages, updated by indices, applying taper weights. Dwelling type 
weights in Brussels and in duty stations are identified by periodic housing surveys.

EN 

35 

   EN 

 
 
 
Table 3.2 (Continued from previous page)

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

Country

Non-detache d houses

De tached houses

Place of employment

(140-160m²)

(110-130m²)

(80-100m²)

(190-220m²)

(150-180m²)

(110-140m²)

1665

1733

828

1052

492975

436596

1286

1200

BE Brussels

LV

Riga

LT

Vilnius

HU Budapest

MT Valletta

NL T he Hague

AT Vienna

PL Warsaw

PT

Lisbon

RO Bucharest

SI

Ljubljana

SK Bratislava

FI Helsinki

SE

Stockholm

UK London

Culham

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2342

2340

1183

1739

809125

803452

1799

1591

8227

8306

1337

1385

1100

1114

3270

3042

1211

1075

1903

2119

1608

1704

6121

5708

1143

1100

1163

1317

2108

2028

21616

21800

1845

1902

1469

1513

4450

4403

2855

2541

1868

1600

1487

1507

1625

1503

1795

1931

2982

3364

27583

27700

3666

3209

1115
1177

1494
1600

Rent 
Parity

0.615

0.596

3.055

2.811

339.0

322.6

0.770

0.753

1.340

1.297

1.295

1.279

4.758

4.609

0.807

0.765

1.169

1.068

0.993

0.923

0.946

0.930

1.513

1.529

14.99

15.09

2.527

2.601

1.067
1.069

Rent value for dwelling type for year in question is average of reported values.  
Rent parity uses a six year model of these averages, updated by indices, applying taper weights. Dwelling type 
weights in Brussels and in duty stations are identified by periodic housing surveys.

EN 

36 

   EN 

 
 
 
 
EN 

37 

   EN 

 
3.3. 

Purchasing power parities - analysis of results 

3.3.1.  Major changes in the economic parities from 2011 to 2012 

The calculation of correction coefficients used for salary adjustment in places other than Brussels and 
Luxembourg  involves  the  revision  of  some  elementary  parities  each  year.  For  the  2012  salary 
adjustment two new price surveys have been incorporated: Services (conducted in Spring 2011), and 
Furniture  &  Health  (conducted  in  Autumn  2011).  The  weighting  structure  used  to  aggregate  the 
parities  has  not  been  updated.  The  weighting  structure  used  to  aggregate  the  rent  parities  have  been 
updated in Brussels and in twenty eight duty stations. The rent parities have been calculated for 2012 
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 32 (out of 80) 
elementary parities, which together account for about 37% (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 2012 are based on the relative trend in 
the  real-estate  markets  in  Brussels  and  other  places  of  employment  between  2007  and  2012.  These 
parities are, therefore, affected by the following factors: 
• 
•  deletion of the rent data for 2006, 
•  price indices used for updating the rents for 2007 - 2011 to price of 2012. 

introduction of rent data for year 2012, 

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  2011  to  2012,  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 
(+2.9%),  Munich  (+2.7%)  and  Helsinki  (+1.1%).  The  largest  decreases  in  the  rent  parity  were 
recorded in Sofia (-14.8%), Bucharest (-8.6%), Vilnius (-8.0%), and Athens (-7.9%).  

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 (1.7.2012) and by changes in the consumption structures (updated 
every  five  to  seven  years  by  the  introduction  of  new  SHE  results)3.  Details  of  the  changes  in  the 
economic parities from 2011 to 2012, 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 
Munich  (+3.1%)  and  Tallinn  (+2.9%),  London,  The  Hague  and  Riga  (+2.5%),  Berlin  (+2.2%),  and 
Karlsruhe  and  Culham  (+1.8%).  The  biggest  decreases  in  the  parities  can  be  observed  in  Sofia  (-
3.6%), Athens (-1.9%) and Vilnius (-1.7%).  

As regards price indexation, the impact of official indices for the year to July 2012 on the PPP at the 
level of total consumption were lower than Brussels in 22 places (23 if Croatia is included) and higher 
than Brussels in the remaining 8 places. Here it should be recalled that there are important differences 
between  HICP  and  PPP  methodologies  (e.g.  use  of  different  weights  for  aggregation  purposes).  For 
this  reason,  the  "price  updating  effect"  presented  in  the  table  cannot  be  directly  compared  with  the 
relative movement of the all-items HICP published separately on the Eurostat website – although other 
things being equal that movement should also give an indication of the likely magnitude and direction 
of change. 

3 

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

EN 

38 

   EN 

 
                                                 
Table 3.3
Changes in the economic parities in the twelve months to 1st July 2012
Decomposition of the effects
(for staff)

Country

Impact of change in PPP

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

 London

 Culham

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

HR

Zagreb

E11-1

Introduction of new surveys
E11-2
Furniture & 
Health

Services

0.2

0.4

0.3

1.7

1.3

1.6

2.3

1.5

0.2

1.2

0.4

1.2

0.4

1.5

1.5

2.7

-0.3

1.0

0.3

2.5

1.6

-0.5

0.9

0.2

1.2

0.9

0.6

1.4

0.9

0.9

1.1

-0.3

-0.1

-0.1

0.1

-0.2

0.0

0.0

0.3

0.1

-0.1

0.4

0.9

-0.4

-0.1

0.7

0.7

0.1

-0.1

-0.8

0.7

-0.1

-0.3

0.0

0.3

-0.2

-0.1

0.2

0.5

0.7

0.8

0.2

Price updating 
effect
(HICP)

New rents

Total 
change
%

-0.5

0.7

-0.1

0.0

0.0

0.0

0.0

1.2

-0.8

-0.5

0.0

-1.3

0.5

0.5

-0.2

-0.4

0.1

1.1

1.5

-0.4

0.1

0.1

-0.4

0.2

-0.5

0.4

0.0

-0.7

-0.2

-0.2

0.0

-3.0

-0.7

0.4

0.4

0.1

0.3

0.8

-0.2

-1.3

-0.9

0.2

0.1

-1.0

-0.3

-0.7

-0.5

-1.7

-1.0

-0.2

-0.2

-0.3

-0.5

-1.0

-0.6

-1.5

-0.1

0.5

0.4

1.2

0.3

0.3

-3.6

0.3

0.5

2.2

1.2

1.8

3.1

2.9

-1.9

-0.3

1.1

0.9

-0.6

1.7

1.4

2.5

-1.7

1.1

0.7

2.5

1.3

-1.3

-0.6

0.1

-1.0

1.1

1.4

1.6

2.5

1.8

1.6

EN 

39 

   EN 

 
 
 
Table 3.4
Changes in rent parities in the twelve months to 1st July 2012
Decomposition of the effects
(for staff)

Place of employment

Deletion of 
survey
2006

Introduction of 
survey
2012

Price index
2012

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  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

SI

 Ljubljana

SK  Bratislava

FI

 Helsinki

SE  Stockholm

UK  London

 Culham

-12.3

-2.6

-0.7

1.2

0.8

1.7

2.8

-5.8

-3.8

-2.1

0.5

0.8

-3.9

-1.0

-2.2

-7.8

-5.9

-3.9

0.7

-4.9

-1.4

-3.4

-2.9

-8.7

-5.5

-3.4

1.2

1.8

6.9

0.5

-1.8

-1.6

2.0

1.0

0.2

0.2

1.6

3.8

-3.1

-1.9

0.1

0.1

-1.8

-1.7

-1.2

6.1

-1.9

-2.9

-2.1

2.6

0.0

-0.6

-2.2

0.7

-1.2

1.4

0.1

0.4

-2.8

0.6

-1.0

0.4

-0.7

-1.6

-1.6

-1.6

-1.6

0.5

-1.3

-0.8

-0.6

-1.2

0.1

0.1

-0.9

-0.9

-0.3

2.0

-0.7

-0.8

0.2

0.9

-0.2

-0.7

-0.5

0.4

-0.2

-1.5

-0.9

-0.9

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

-14.8

-3.8

0.6

0.7

-0.6

0.2

2.7

-1.7

-7.9

-4.7

0.0

-0.3

-5.6

-2.5

-4.3

-3.1

-8.0

-4.8

-2.1

-3.2

-1.2

-3.1

-5.3

-8.6

-7.1

-1.6

1.1

0.7

2.9

0.2

EN 

40 

   EN 

 
 
3.3.2  Major changes in the economic parities from 2011 to 2012 

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 (325.6), Paris 
(179.7),  Stockholm  (171.5),  and  Copenhagen  (160.6),  whereas  they  are  quite  low  in  Sofia  (50.0), 
Nicosia (60.1), Valletta (75.3), Lisbon (76.5) and Tallinn (76.8). 

For  the  overall  correction  coefficient,  however,  the  range  is  smaller:  London  (147.8),  Copenhagen 
(135.3), and Stockholm (131.9) compared to Sofia (58.4), Bucharest (68.8) and Vilnius (71.5). 

When rents are added to the computation, the correction coefficient is increased by 10% or more in 
London (+35.8%), Bucharest (+14.9%), Paris (+14.2%), Budapest (+12.7%), Warsaw (+12.6%) and 
Prague (+10.0%). By contrast the impact is negative in Nicosia (-8.5%), Sofia (-4.3%),  
Karlsruhe (-3.5%), Varese (-3.3%), Bonn (-2.9%), Valletta (-2.8%) and Lisbon (-2.7%) and the impact 
is near zero in Berlin and Tallinn. 

More details on the effect of rent on the 2012 correction coefficients are given in table 3.5. 

EN 

41 

   EN 

 
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

Table 3.5
Effect of rent on the correction coefficients - 2012
(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

Rent
[4]

50.0

107.6

160.6

96.1

84.4

82.6

131.6

76.8

96.3

129.9

179.7

134.5

142.8

81.6

60.1

85.5

81.4

112.1

75.3

129.7

127.9

107.5

76.5

106.8

92.3

93.0

152.9

171.5

325.6

133.8

Without 
rent
[3]

61.0

73.3

127.2

95.8

96.9

97.2

100.3

77.8

89.5

89.5

103.1

105.1

95.7

96.6

91.9

75.3

68.7

69.5

85.7

99.4

99.9

65.9

85.8

59.9

83.2

76.0

112.9

120.8

108.8

106.7

42 

Overall
[5]

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

58.4

80.6

135.3

95.8

94.1

93.8

106.4

77.6

90.5

97.1

117.7

110.6

104.2

93.4

84.1

77.6

71.5

78.3

83.3

105.3

106.4

74.2

83.5

68.8

85.3

79.7

122.1

131.9

147.8

112.5

-4.3  

10.0  

6.4  

0.0  

-2.9  

-3.5  

6.1  

-0.3  

1.1  

8.5  

14.2  

5.2  

8.9  

-3.3  

-8.5  

3.1  

4.1  

12.7  

-2.8  

5.9  

6.5  

12.6  

-2.7  

14.9  

2.5  

4.9  

8.1  

9.2  

35.8  

5.4  

EN 

   EN 

 
 
4. 

EQUIVALENCE  OF  PURCHASING  POWER  OF  EC  PENSIONERS  IN  THE  MEMBER 
STATES 

4.1. 

Economic parities and correction coefficients for pensioners 

The correction coefficients for pensioners with a reference date of 1 July 2012 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. Consumption weights for Croatia have been estimated as the average 
of the values for duty stations outside Brussels, adjusted for rents (this is a similar method to the 
estimation of values for staff duty stations with insufficient individual sample response). 

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 2011 and 2012. 

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 

43 

   EN 

 
Table 4.1 (Continued on next page)
Economic parities of the 12 main expenditure groups for each duty station
1.07.2012
(for pensioners)

Expenditure 

BE

BG

Groups*

Weight

Weight

1

2

3

4

5

6

7

8

9

10

11

12

Rents

Total w ithout 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

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

Expenditure 

BE

FR

Groups*

Weight

Weight

1

2

3

4

5

6

7

8

9

10

11

12

Rents

Total w ithout 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

94.5

20.4

57.6

194.9

118.4

18.9

177.0

19.4

131.8

14.9

71.7

80.5

148.8

851.2

Parity

1.303

1.654

1.281

0.619

1.009

1.163

1.415

1.108

1.300

0.334

0.974

1.485

0.543

1.205
1.122

Parity

0.971

1.001

1.005

1.332

1.103

0.944

1.071

0.897

1.045

0.986

1.105

1.056

1.501

1.037
1.092

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

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

Parity

19.44

26.43

20.73

17.94

18.21

16.86

20.69

22.76

20.86

10.40

14.34

20.80

21.45

19.04
19.24

Parity

1.003

1.507

0.766

1.158

0.874

1.104

1.127

0.841

1.047

1.353

0.972

1.170

1.242

1.013
1.045

* For explanation of codes see table 3.1

EN 

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

CY

Weight

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

Parity

0.979

0.974

0.880

1.028

0.925

0.966

1.062

0.663

1.008

1.321

0.843

0.882

1.081

0.949
0.966

Parity

0.902

1.199

0.846

0.666

0.857

1.028

0.996

0.404

1.108

0.833

0.837

0.849

0.634

0.912
0.874

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

IT

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

Parity

8.991

10.630

8.014

9.08

8.310

9.29

11.27

5.952

9.54

10.82

10.412

10.37

8.51

9.628
9.461

Parity

0.964

1.115

0.952

1.001

0.948

1.045

0.977

0.924

1.008

0.997

0.897

0.929

1.088

0.958
0.974

44 

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

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

Parity

0.779

1.109

0.856

0.907

0.689

0.664

0.799

0.588

0.826

0.295

0.664

0.771

0.844

0.775
0.780

Parity

0.565

0.839

0.583

0.435

0.432

0.530

0.571

0.483

0.560

0.229

0.512

0.547

0.513

0.523
0.521

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

LT

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

Parity

0.943

1.239

0.951

0.689

0.903

0.827

0.992

1.062

1.002

0.644

0.727

0.895

0.941

0.883
0.890

Parity

2.374

3.430

2.833

1.972

2.195

2.516

2.812

1.847

2.601

0.885

2.024

2.383

1.986

2.447
2.401

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

HU

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

Parity

0.814

0.865

0.863

0.928

0.905

0.701

1.021

1.185

0.977

0.781

0.809

0.878

1.001

0.897
0.909

Parity

225.6

261.1

223.1

161.3

173.8

182.0

236.6

249.3

223.2

87.87

150.5

199.8

183.9

199.6
197.7

EN 

 
  
 
Table 4.1 (Continuation)
Economic parities of the 12 main expenditure groups for each duty station
1.07.2012
(for pensioners)

Expenditure 

BE

MT

Groups*

Weight

Weight

1

2

3

4

5

6

7

8

9

10

11

12

Rents

Total w ithout 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

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

Expenditure 

BE

SK

Groups*

Weight

Weight

1

2

3

4

5

6

7

8

9

10

11

12

Rents

Total w ithout 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

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

Parity

0.857

0.958

0.749

0.735

0.741

0.922

1.028

0.653

0.887

0.622

0.785

0.852

0.828

0.839
0.837

Parity

0.816

1.120

0.836

0.560

0.634

0.650

0.771

0.979

0.866

0.334

0.666

0.837

0.562

0.755
0.735

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

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

Parity

0.830

1.025

0.865

1.086

0.937

1.108

1.131

0.997

1.033

0.919

1.042

0.980

1.102

0.994
1.009

Parity

1.072

1.665

1.052

1.224

1.048

0.962

1.180

0.707

1.157

1.123

1.089

1.225

1.258

1.119
1.138

* For explanation of codes see table 3.1

EN 

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

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

Parity

0.998

0.964

0.883

1.220

0.976

0.996

1.077

0.794

1.031

0.874

0.916

1.029

1.320

0.991
1.032

Parity

9.794

14.33

9.87

13.25

10.285

9.377

10.33

6.687

10.54

10.23

11.81

11.30

13.93

10.47
10.90

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

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

Parity

2.740

4.615

2.942

2.442

2.646

2.313

3.295

2.560

3.122

1.240

2.622

2.981

2.573

2.877
2.845

Parity

0.762

1.270

0.623

1.425

0.927

0.672

0.907

0.789

0.857

1.119

0.896

0.930

1.687

0.850
0.950

45 

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

HR

Weight

95.5

24.4

75.9

123.0

126.6

33.8

190.4

18.6

146.8

10.0

69.2

86.0

73.8

926.2

Parity

0.809

0.886

0.766

0.689

0.849

0.815

1.082

0.912

0.882

0.981

0.651

0.787

0.647

0.859
0.828

Parity

6.193

8.505

5.787

4.286

5.009

4.753

6.566

4.753

5.961

4.766

5.096

5.766

4.523

5.684
5.553

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

Parity

2.732

3.022

3.208

1.921

2.323

2.849

3.313

2.151

3.093

0.929

1.908

3.526

2.095

2.741
2.669

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

Parity

0.881

1.054

0.814

0.647

0.770

0.727

0.898

0.709

0.941

0.646

0.768

0.891

0.642

0.840
0.812

EN 

 
  
Table 4.2

Rent ratios applied for the estimation of 
the pensioners rent parities

Country

Ratio applied in

2011

2012

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

HR

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

0.55

0.91

0.51

0.70

0.85

1.02

1.00

0.89

0.70

0.76

0.84

0.69

0.96

0.78

0.64

0.52

1.00

0.77

0.94

0.51

0.77

0.40

0.63

0.55

0.75

0.84

0.59

0.59

0.00

0.12

0.08

-0.18

0.01

0.00

0.00

0.00

0.00

0.00

-0.09

-0.03

0.18

-0.12

0.00

0.00

0.06

-0.04

0.05

0.00

-0.02

-0.11

0.00

-0.01

0.00

0.00

0.04

* Country PPP rent (estimated from ECP data)

EN 

46 

   EN 

 
  
 
4.2. 

Purchasing power parities for pensioners – analysis of results 

In  2012,  for  14  out  of  25  member  states  (i.e.  excluding  BE  and  LU),  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  the  remaining  11  countries,  the  rent  correction 
coefficient is greater than 100. 

Moreover, for 12 Member States, the rent correction coefficient is lower than the correction coefficient 
without rent. This means that, for these places, the  rents lead to a reduction of the global correction 
coefficient. 

Country

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

Table 4.4
Effect of rent on the correction coefficients - 2012
(for pensioners)

Weight

Correction coefficient

Rent effect

Overall
[5]

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

57.4

74.6

127.3

96.6

78.0

89.0

90.9

109.2

104.5

97.4

87.4

74.9

69.5

68.7

83.7

100.9

103.2

66.4

82.8

60.0

81.2

73.5

113.8

123.8

119.0

-6.8  

1.1  

-1.7  

1.8  

0.6  

0.8  

1.3  

5.3  

3.2  

1.7  

-4.2  

-0.4  

-2.0  

-0.9  

-0.2  

1.5  

4.1  

-1.0  

-3.6  

-2.6  

-3.3  

-2.6  

1.7  

4.0  

11.8  

Without 
rent
[1]

938.0

929.8

838.3

863.5

933.0

867.7

875.1

851.2

827.2

855.8

890.3

961.0

952.9

934.6

928.4

854.4

846.5

942.0

871.4

936.7

877.1

942.4

854.5

847.6

799.9

Rent
[2]

62.0

70.2

161.7

136.5

67.0

132.3

124.9

148.8

172.8

144.2

109.7

39.0

47.1

65.4

71.6

145.6

153.5

58.0

128.6

63.3

122.9

57.6

145.5

152.4

200.1

Rent
[4]

27.8

83.1

114.5

108.1

84.4

94.1

100.1

150.1

124.2

108.8

63.4

73.7

57.5

63.9

82.8

110.2

132.0

60.0

64.7

47.1

64.2

56.2

125.8

158.3

211.1

Without 
rent
[3]

61.6

73.8

129.5

94.9

77.5

88.3

89.7

103.7

101.3

95.8

91.2

75.2

70.9

69.3

83.9

99.4

99.1

67.1

85.9

61.6

84.0

75.5

111.9

119.0

106.4

47 

EN 

   EN 

 
 
 
 
4.3. 

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,  London  the  highest  capital-based  CC. 
The  biggest  differences  between  capital  city  CCs  and  country  CCs  can  be  observed  in  the  United 
Kingdom,  Hungary,  Romania,  France,  Finland,  Sweden  and  Denmark.  By  contrast,  in  Germany, 
Estonia, Malta, and Portugal the two CCs are nearly at the same level.  

In  all  countries  except  Germany,  Estonia,  Cyprus,  and  Malta  the  country  CCs  are  lower  than  the 
capital city CCs. Without rents, the two sets of CCs are closer – and the country CC without rent is 
slightly higher than the capital city CC in 11 out of 25 Member States. 

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

EN 

48 

   EN 

 
 
 
Pensioners correction coefficients and Staff correction coefficients

Table 4.5

1.7.2012

Correction coefficients for pensioners

Correction coefficients for staff

Country

 without 
rents

rents

Total

Capitals

 without 
rents

rents

Total

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

HR

100.0

61.6

73.8

129.5

94.9

77.5

88.3

89.7

103.7

101.3

95.8

91.2

75.2

70.9

69.3

83.9

99.4

99.1

67.1

85.9

61.6

84.0

75.5

111.9

119.0

106.4

75.6

100.0

27.8

83.1

114.5

108.1

84.4

94.1

100.1

150.1

124.2

108.8

63.4

73.7

57.5

63.9

82.8

110.2

132.0

60.0

64.7

47.1

64.2

56.2

125.8

158.3

211.1

60.2

100.0

Brussels

57.4

74.6

 Sofia

 Prague

127.3

 Copenhagen

96.6

78.0

89.0

90.9

109.2

104.5

97.4

87.4

74.9

69.5

68.7

83.7

100.9

103.2

66.4

82.8

60.0

81.2

73.5

113.8

123.8

119.0

73.9

 Berlin

 Tallinn

 Athens

 Madrid

 Paris

 Dublin

 Rome

 Nicosia

 Riga

 Vilnius

 Budapest

 Vallette

The Hague

 Vienna

 Warsaw

 Lisbon

 Bucharest

 Ljubljana

 Bratislava

 Helsinki

 Stockholm

 London

Zagreb

100.0

61.0

73.3

127.2

95.8

77.8

89.5

89.5

103.1

105.1

95.7

91.9

75.3

68.7

69.5

85.7

99.4

99.9

65.9

85.8

59.9

83.2

76.0

112.9

120.8

108.8

75.8

100.0

50.0

107.6

160.6

96.1

76.8

96.3

129.9

179.7

134.5

142.8

60.1

85.5

81.4

112.1

75.3

129.7

127.9

107.5

76.5

106.8

92.3

93.0

152.9

171.5

325.6

92.7

100.0

58.4

80.6

135.3

95.8

77.6

90.5

97.1

117.7

110.6

104.2

84.1

77.6

71.5

78.3

83.3

105.3

106.4

74.2

83.5

68.8

85.3

79.7

122.1

131.9

147.8

78.6

EN 

49 

   EN 

 
5. 

INFORMATION ABOUT WORKING TIME 

Through  the  standard  remuneration  questionnaire,  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 2012 has been compared with that in July 2011. 

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 2011

July 2012

38

41

38

41

37:30' - 40

37:30' - 40

35

36

40

36

36

37

35

36

40

36

36

37

2011 and 2012: 8 depts

2011 and 2012: 8 depts

Table 5.2

Number of days annual leave

Country

Number of days

Remarks

BE

DE

ES

FR

IT

LU

NL

UK

July 2011

July 2012

26 - 33

26 - 33

Depends on age

26-30

28-32

25

32

32-36

23 - 27

26-30

Depends on age 

28 - 32

Depends on age

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 2011

July 2012

BE

DE

ES

FR

IT

LU

NL

UK

13

6 (7 inkl. 
Saturdays)

14

10

11

11

8

13

8

14

10

11

11

8

Time off when the public holiday falls on Saturday 
or Sunday

Berlin 

Time off when the public holiday falls on Sunday

Time off when the public holiday falls on Sunday

10,5 - 11,5

10,5 - 12

Time off when the public holiday falls on Saturday 
or Sunday

Similarly,  information  is  also  collected  about  retirement  age  in  central  government.  The  situation  at 
July 2012 is shown in Table 5.4. 

Table 5.4

Age of retirement and early retirement

Country

Age

Remarks

Retirement

Early retirement

65

65 (police 60)

60

63

Possibility of part-time from 55 years

Variations of retirement depending on age

65

60

66

60

65

60 - 65

60-64

Early retirement: at least 30 years of service

51-55

60 - 61

Variations of retirement depending on sex and 
contributions

57

Early retirement: 40 years of service

60 - 65

50-55

BE

DE

ES

FR

IT

LU

NL

UK

EN 

51 

   EN