INTERNAL COMMISSION DIRECTIVE

At their 243^rd meeting, on 6 October 2005, the College of the Heads of Administration approved Conclusion 244/05 (see Annex), which shall apply within the Commission from 1 November 2005.

Claude Chêne

Annex

Luxembourg, 11 October 2005

CONCLUSION 244/05

APPROVED BY THE HEADS OF ADMINISTRATION
AT THEIR 243^rd MEETING, ON 6 OCTOBER 2005

Article 1(3) of Annex VII to the Staff Regulations states: “If the spouse of an official is gainfully employed, with an annual income before deduction of tax, of more than the basic annual salary of an official in the second step of grade 3, weighted at the rate for the country where the spouse carries out his or her occupation, the official entitled to the household allowance shall not receive this allowance save by special decision of the appointing authority. The official shall, however, be entitled to the allowance where the married couple have one or more dependent children.”

For the purposes of applying this article:

1. The level of the professional income of the spouse of the married official or other servant without dependent children is to be determined taking into account:
    
   • if the spouse is also an official or other servant of the European Communities:
     
     the basic annual salary plus, if applicable, the expatriation or foreign residence allowance, the ad personam allowance provided for in Article 18(1) of Annex XIII to the Staff Regulations and any non regular income (overtime, standby duty allowance, shift work allowance, etc.), and minus contributions for sickness, accident, pension and, if applicable, unemployment;
      
   • in other cases:
     
     annual taxable income as determined by the competent national tax authorities.
      
2. The reference period for determining whether the official or other agent is entitled to receive the household allowance under Article 1(3) of Annex VII shall be the calendar year. That entitlement shall be determined by comparing the total annual amount of the spouse’s professional income, calculated using the method set out at point 1 above, to the basic annual salary of an official in the second step of grade 3 (the second step of grade C*3 until 30 April 2006), calculated over the reference year.
   
   Nevertheless:
    
   1. If the event giving rise to entitlement to the household allowance (entry into service or marriage of the official or other servant) occurs part way through the calendar year in question, the institution shall determine whether the person concerned is entitled to receive the allowance by comparing the spouse’s professional income during the period starting in the month of entry into service or of marriage and finishing at the end of the calendar year to the basic salary of an official in the second step of grade 3 (the second step of grade C*3 until 30 April 2006) over the same period.
      
      Example:
      
      If an official without dependent children marries in May, the spouse’s professional income from May to December shall be compared to a limit corresponding to two thirds of the annual limit provided for by the Staff Regulations. If that limit is not exceeded, the official shall receive the household allowance for the whole May December period of the year in question.
       
   2. If the spouse no longer receives professional income because the professional activity has ceased part way through the calendar year, for example upon retirement, the married official or other servant without dependent children shall in any case start receiving the household allowance from when the spouse’s professional activity ceases. In this case, the spouse’s professional income during the period of gainful professional activity shall be compared to the basic salary of an official in the second step of grade 3 (the second step of grade C*3 until 30 April 2006) over the same period.
      
      The official or other servant must inform the Administration promptly that the spouse’s professional activity has ceased.
      
      Example:
      
      If an official’s spouse retires on 1 September, the professional income received from January to August shall be compared to a limit corresponding to two thirds of the annual limit provided for by the Staff Regulations. If that limit is not exceeded, the official shall receive the household allowance for the whole January August period of the year in question; the official shall in any case receive the household allowance from September onwards.
       
3. It follows that monthly payment of the household allowance shall be provisional, the Administration notifying the recipient in writing. Having made the comparison provided for in paragraph 2 of this Conclusion, the Administration shall – if applicable - confirm to the official or other servant that they are entitled to receive the household allowance for the period concerned. Otherwise the Administration shall recover the amount unduly paid.

This Conclusion shall apply from 1 November 2005.

For the College of the Heads of Administration