Personnel & Administration - Informations Administratives

Annual adjustment of pay and pensions for 2004

In accordance with Annex XI to the Staff Regulations⁽¹⁾ , the Commission has presented to the Council a proposal on adjusting pay and pensions with retroactive effect from 1 July 2004.

The proposed adjustment to pay and pensions in Belgium and Luxembourg is +0.7%. For other places of employment, the adjustment will vary depending on the simultaneous effects of weightings and exchange rates.

In accordance with Annex XII to the Staff Regulations, the Commission has also presented a proposal on adjusting pension contributions with retroactive effect from 1 July 2004. The proposed adjustment to pension contributions is +0.5% (from 9.25% to 9.75%).

The Staff Regulations also provide for increasing, with effect from 1 January 2005, the special levy by +0.43% (from 2.5% to 2.93%).

For most staff in active service, the combined effect of these three components will be an average net increase⁽²⁾ of +0.2% from 1 January 2005⁽³⁾, with two exceptions:

For the 13% of staff whose nominal income is protected⁽⁴⁾ , the net effect from 1 January 2005 will range between -0.5% and +0.2%⁽⁵⁾ depending on the level of that protection which must be deducted from the annual adjustment.
For staff outside Belgium and Luxembourg, the variation in weightings and exchange rates must also be taken into account. That variation will entail a pay reduction backdated to 1 July 2004 for staff in some Member States (the Czech Republic, Ireland, the Netherlands⁽⁶⁾ , Finland, the United Kingdom).

Under Article 3(6) of Annex XI to the Staff Regulations, if adjustment necessitates the recovery of sums overpaid, such recovery may be spread over a period of not more than 12 months.

As in previous years, the annual adjustment calculation will be shown on a separate salary statement issued between those for December 2004 and January 2005.

It should also be noted that the final, automated calculation of protected nominal income is scheduled for the February 2005 salary. That calculation will take into account the fact that the increases in pension contributions with effect from 1 July 2004 and in the special levy with effect from 1 January 2005 cannot be covered by protection of nominal income.

As every year, an updated version of the pay calculator is available at:

The weightings table can be consulted at:

Correction coefficients

The salary scales can be consulted as follows:

Please address any specific questions not covered by the above to the contact person shown on your salary statement.

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FOOTNOTES

⁽¹⁾ For 2003, exceptionally and by derogation from Article 3 of Annex XI, adjustment took effect from 1 January 2004.

⁽²⁾ It will vary depending on pay level and family circumstances.

⁽³⁾ +0.35% for the period 1 July to 31 December 2004.

⁽⁴⁾ Net nominal income paid in April 2004 is protected by Article 19 of Annex XIII to the Staff Regulations. That guarantee does not cover changes to pension contributions and to the special levy, however.

⁽⁵⁾ Between –0.35% and +0.35% for the period 1 July to 31 December 2004.

⁽⁶⁾ -3.8% in the Netherlands, due to changing the reference from Amsterdam to The Hague.


	N° 134-2004 / 21.12.2004