Transitional reform measures – changes on 1 January 2006

• As laid down in Article 17 of Annex XIII to the Staff Regulations, as of 1 January 2006, the amounts of salary transferred abroad that had been temporarily maintained under the reform will be reduced to 60% of the value set in April 2004.
  
  Staff concerned by this are reminded that as well as this amount, they can also transfer up to 25% of their basic salary without any corrective weighting and at the monthly accounting rate of the euro (Article 17(4) of Annex VII). If you wish to do this from your January 2006 salary onwards, your application must be in the hands of the PMO salary department no later than 19 December 2005. Given the potentially large number of applications that could be made, it is possible that some will only be processed in time for the February 2006 salaries (see the deadlines laid down in Article 2 of the rules on “transfers”) http://www.cc.cec/pers_admin/pay_transfer/documents/reglementation_communes.pdf
   
• As laid down in Article 66a of the Staff Regulations, the rate of the special levy will increase from 2.93% to 3.36% on 1 January 2006.
   
• As laid down in Article 14 of Annex VII, dependent child allowance will be increased from €282.04 to €295.52 on 1 January 2006. This increase will automatically entail an increase in expatriation or foreign residence allowances and a reduction in the tax paid on your salary.

If you have any questions on how these changes affect you personally, please ask the contact person indicated on your salary slip.