This interim report implements the aforementioned provision by describing the process and outcome of the implementation of the rules for the remuneration and pensions update under Annex XI to the Staff Regulations (hereinafter the “Method”) as well as the solidarity levy under Article 66a for the period 2014-2018.
The provisions of the current Method for updating remuneration and pensions were adopted as part of the reform of the EU Staff Regulations in 2013. They apply from 1 January 2014 until at least 31 December 2023. The proper functioning of the Method is based on the two underlying principles that have been reconfirmed in 2013:
– The principle of parallelism of the evolution of purchasing power of EU staff and national officials in central governments (Article 65 and Annex XI SR); and
– The principle of equality of purchasing power among EU staff in different duty stations (Article 64 and Annex XI SR).
The principle of parallel development of purchasing power means that the purchasing power of officials of the EU follows, both upwards and downwards, the evolution of the average purchasing power of civil servants in national central government. Therefore, under Article 65(1) of the Staff Regulations the update of remuneration and pensions reflects the annual evolution between 1 July of the previous year and 1 July of the current year of:
– The real salaries of civil servants in the central governments in a sample of 11 Member States representing at least 75% of the EU Gross Domestic Product. For each of these Member States, the yearly change in real salaries is calculated net of inflation and is called the Specific Indicator. The Global Specific Indicator (GSI) is the average of all specific indicators weighted by GDP.
– The annual inflation in Brussels and Luxembourg (in the same proportion as the distribution of the EU staff between the two cities). This element is called Joint Index.