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Remuneration and Pensions of EU staff

European Commission

Eurostat

Unit C3 Statistics for administrative purposes

Ian Dennis, Senior Expert, Team Leader

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Eurostat remuneration statistics for administrative purposes

  • Policy rationale: good functioning of the HR (pay) system of the EU administration
  • Key principles: parallelism, equality
  • Main users: EU Commission; other EU institutions and EU agencies; international partners; other users
  • Main objective: to calculate the annual update of salaries and pensions, and the correction coefficients for all duty stations (>175)
  • Related work: eg.benchmarking, mission expenses, pensions actuarial liability

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Policy rationale

  • Pay is an important component of HR system: …having the right people in the right place doing the right thing…

  • Principles are set out in EU Staff Regulations (1962 + periodic reforms)
  • Implementation methodology is adopted by annual Working Group
  • Objective statistical calculation by Eurostat

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Key principles

EU Staff Regulations

    • Articles 64 & 65 + Annexes X & XI (remuneration)
    • Article 83 + Annex XII (pensions)

  1. Parallel evolution of EU salaries with those of national civil services (average for Member States)
  2. Equal purchasing power of headquarters salaries (Brussels) in all other EU duty stations

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Main users

  • Commission: SG, DG HR, DG BUDG, PMO, SJ, ESTAT (on behalf all institutions + agencies)

  • Data partners (UN, OECD)
  • External users (EPO, EuroControl, etc)
  • Transparent public dissemination

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Various reporting obligations

  • Annual Report: 31 October (situation as at 1.July)
  • Interim Report (situation as at 1.January)

  • 4 yearly review report

  • Ad-hoc reports

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“Article 64” calculations

  • Correction coefficients (@July, @January)
    • Intra-EU staff
    • Pensioners
    • Extra-EU staff

  • Maximum use of existing data: ECP, HICP
  • Some specific surveys (rents, school fees)
  • Other data (no burden for MS) eg. staff family budget survey
  • International collaboration/exchange (eg. UN)

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Correction coefficients

  • PPPs are price relatives showing the ratio of prices in national currencies of the same good or service in different countries bilaterally with reference to headquarters (Brussels)

  • Dividing the PPPs by Exchange Rates to Euro gives a percentage adjustment factor to apply to salaries expressed in local currency, which ensures same purchasing power as in Brussels

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“Article 65” calculations

  • Country specific indicator measures the evolution of salaries of national civil servants in central public administration

  • Two stages:
    1. Preliminary forecast for year (January)
    2. Annual questionnaire: definitive results (July)

  • Comparative information

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Preliminary forecast

  • Relatively low response burden
    • Forecast pay evolution in nominal terms
    • Forecast consumer price inflation

  • Typical respondent:
    • Government ministry responsible for administering the national civil service (eg. HM Treasury, Prime Minister Cabinet)
    • National economic forecasting agency
    • National Statistics Institute

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Definitive data collection

  • Detailed questionnaire
    • Staff numbers (breakdown by grade)
    • Gross salary + net salary (breakdown by grade)
  • Transmission via eDAMIS
  • Bilateral collaborative validation process

  • Preparatory first step: develop a specific country manual (“inventory”) and construct a model of gross pay components and statutory deductions

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Specific A65 definition

  • Goal is to identify pure salary movement
    • Eliminate structural components and individual factors (eg. overtime, merit pay, promotion, reforms): comparing standard average salary figure at t0 and t1 is insufficient

  • Only measure movement for a target group of national civil servants
    • Central public administration, permanent status
    • Exclude certain ISCO codes (military, police, healthcare workers, education workers, …)

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Average evolution for EU Member States

  • Core sample: 11 countries
    • BE, DE, ES, FR, IT, LU, NL, AT, PL, SE, UK

  • For comparison: whole EU

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Transparent dissemination

  • Dedicated Section (annual reports, explanations, methodology)
  • Compliance reports

  • Free Data Tables
    • EU11 + EU28 + individual MS
    • CC (intra-EU, extra-EU)

  • CIRCABC archive (working group papers)

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Thank you for your attention !

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