Communication from the Commission to the other institutions concerning the conversion into euro of the amounts provided for in the Staff Regulations (1999/C 60/09)

EXECUTIVE SUMMARY

On 1 January 1999 the parameters for calculating remuneration and pensions (basic salary, allowances, contributions, tax, exchange rates applied to salaries, etc.) and other entitlements were automatically laid down in euro by the combined effect of the following three acts:

1. the Staff Regulations, as last amended by the annual salary adjustment for 1998 (Council Decision of 17 December 1998), laid down these parameters in Belgian francs with effect from 1 July 1998, which was also the reference date for exchange rates against the Belgian franc;

2. the amendment of Staff Regulations looking ahead to the fixing of financial entitlement in euro on 1 January 1999 (Council Decision of 12 November 1998) replaced these parameters with their equivalent in euro units at the conversion rate in force on 1 January 1999, which is also the new reference date (1) for exchange rates against the euro;

3. the definitive fixing of conversion rates against the euro with effect from 1 January 1999 (Council Decision of 31 December 1998).

However, in the interests of transparency and legal certainty, Article 7 of Council Regulation (EC) No 2458/98 stipulates that:

'On 1 January 1999, pursuant to this Regulation, the Commission shall effect the conversion into euro of the amounts of the different financial entitlements referred to in the Staff Regulations and the Conditions of Employment of Other Servants and the adjustment of the weightings to correct the effect of the change in exchange rates; these values shall be published in the Official Journal of the European Communities in January 1999.`

The amounts provided for in the Staff Regulations expressed in euro with effect from 1 January 1999 are therefore as follows:

1. Monthly salaries

(a) The table of basic monthly salaries in Article 66 of the Staff Regulations has been replaced by the following:

>TABLE>

(b) - in Article 1(1) of Annex VII to the Staff Regulations, the sum of BFR 6 691 has been replaced by the sum of EUR 165,87,

- in Article 2(1) of Annex VII to the Staff Regulations, the sum of BFR 8 617 has been replaced by the sum of EUR 213,61,

- in the second sentence of Article 69 of the Staff Regulations and in the second subparagraph of Article 4(1) of Annex VII thereto, the sum of BFR 15 394 has been replaced by the sum of EUR 381,61,

- in Article 3(1) of Annex VII to the Staff Regulations, the sum of BFR 7 701 has been replaced by the sum of EUR 190,90;

(c) the table of basic monthly salaries in Article 63 of the Conditions of Employment of Other Servants has been replaced by the following:

>TABLE>

(d) the fixed allowance referred to in Article 4a of Annex VII to the Staff Regulations has been replaced by:

- EUR 99,55 per month for officials in Grade C 4 or C 5,

- EUR 152,63 per month for officials in Grade C 1, C 2 or C 3.

2. Weightings

2.1. Intra-EU weightings

1. The date in the second paragraph of Article 63 of the Staff Regulations has been replaced by 1 January 1999.

The new weightings are consequently fixed on the basis of the ratio between the economic parities in force and the new exchange rates as referred to in Article 63 of the Staff Regulations, both expressed in euro.

At the time of the annual review of remuneration to take effect on 1 July 1999, the date specified in the second paragraph of Article 63 of the Staff Regulations will be replaced by 1 July 1999.

2. The weightings applicable to the remuneration of officials and other servants employed in the countries and places listed below have been adjusted as follows:

>TABLE>

3. The weightings applicable to pensions will still be determined in accordance with Article 82(1) of the Staff Regulations. Articles 3 to 10 of Council Regulation (ECSC, EEC, Euratom) No 2175/88 (2) will remain in force.

4. In accordance with Annex XI to the Staff Regulations these weightings could be adjusted by a Council Regulation before 31 December 1999 establishing new weightings with effect from 1 July 1999. In this event the institutions will make the corresponding positive or negative adjustment to the remuneration and pensions of the officials, former officials and other persons concerned with retroactive effect for the period between the effective date and the date of entry into force of the decision on the 1999 adjustment.

If this retroactive adjustment necessitates the recovery of sums overpaid, such recovery may be spread over a period of not more than 12 months from the date of entry into force of the Decision on the 1999 annual adjustment.

2.2. Weightings applicable to the remuneration of officials employed in non-member countries

The weightings in force in non-member countries have been recalculated (see Annex) on the basis of the ratio between the economic parities in force and the new exchange rates on 1 January 1999 expressed in euro. When weightings taking effect after 1 January 1999 are adjusted, the corresponding exchange rate will be that for the month preceding the date of application.

In accordance with the first paragraph of Article 13 of Annex X to the Staff Regulations, the Council determines weightings every six months. It will therefore fix the new weightings with effect from 1 July 1998.

If these weightings lead to an increase in remuneration, the institutions will make payments retroactively.

If these weightings lead to a reduction in remuneration, the institutions will make negative retroactive adjustments in remuneration for the period between 1 January 1999 and the date of the Council Decision determining the weightings applicable with effect from 1 January 1999.

Retroactive adjustment necessitating the recovery of sums overpaid may not, however, be applied to a period of more than six months preceding the decision determining the weightings and such recovery may be spread over a period of not more than 12 months from the date of the decision.

3. Daily allowances

The table in Article 10(1) of Annex VII to the Staff Regulations has been replaced by the following table:

>TABLE>

4. Allowances for shiftwork

The allowances for shiftwork laid down in Article 1 of Council Regulation (ECSC, EEC, Euratom) No 300/76 (3) have been replaced by EUR 288,55, EUR 435,52, EUR 476,20 and EUR 649,21.

5. Taxable portions

The text of Article 4 of Regulation (EEC, Euratom, ECSC) No 260/68 (4) is replaced by the following:

'The tax shall be calculated, subject to the provisions of Article 5, on the taxable amount obtained by applying Article 3 and disregarding any amount not exceeding EUR 19,91 and by applying the rate of:

- 8,00 % to amounts between EUR 19,91 and 351,46,

- 10,00 % to amounts between EUR 351,47 and 484,09,

- 12,50 % to amounts between EUR 484,10 and 554,79,

- 15,00 % to amounts between EUR 554,80 and 629,97,

- 17,50 % to amounts between EUR 629,98 and 700,67,

- 20,00 % to amounts between EUR 700,68 and 769,21,

- 22,50 % to amounts between EUR 769,22 and 839,94,

- 25,00 % to amounts between EUR 839,95 and 908,48,

- 27,50 % to amounts between EUR 908,49 and 979,18,

- 30,00 % to amounts between EUR 979,19 and 1 047,72,

- 32,50 % to amounts between EUR 1 047,73 and 1 118,45,

- 35,00 % to amounts between EUR 1 118,46 and 1 186,99,

- 40,00 % to amounts between EUR 1 187,00 und 1 257,69,

- 45,00 % to amounts above EUR 1 257,70 (5)`.

6. Missions

Article 13 of Annex VII to the Staff Regulations has been amended as follows (6):

1. The scale in paragraph 1(a) has been replaced by the following:

>TABLE>

2. The first sentence in paragraph 2 has been replaced by the following:

'(2) In addition to the rates set out in column 1 of the foregoing table, the hotel bill covering room, service and taxes but excluding breakfast, shall be reimbursed up to a maximum of:

EUR 90,98 for Belgium;

EUR 125,31 for Denmark;

EUR 79,95 for Germany;

EUR 62,84 for Greece;

EUR 116,14 for Spain;

EUR 79,57 for France;

EUR 109,44 for Ireland;

EUR 122,58 for Italy;

EUR 81,93 for Luxembourg;

EUR 109,57 for Netherlands;

EUR 89,86 for Portugal;

EUR 106,72 for United Kingdom`.

7. Other amounts

In Article 74(1) of the Staff Regulations, the sum of BFR 8 000 has been replaced by the sum of EUR 198,31.

In Article 24(3) of the Conditions of Employment of Other Servants, the sums of BFR 37 000 and BFR 22 000 have been replaced by the sums of EUR 917,21 and EUR 545,37 respectively.

In Article 28a(3) of the Conditions of Employment of Other Servants, the sums of BFR 30 000 and BFR 60 000 have been replaced by the sums of EUR 743,68 and EUR 1 487,36 respectively.

In Article 12(3) of Annex VII to the Staff Regulations, the sum of BFR 225 has been replaced by the sum of EUR 5,58.

In Article 15 of Annex VII to the Staff Regulations, the sum of BFR 36 000 has been replaced by the sum of EUR 892,42.

(1) With effect from 1 January 1999, the date referred to in the second paragraph of Article 63 of the Staff Regulations has been replaced by 1 January 1999.

(2) OJ L 191, 22.7.1998, p 1.

(3) OJ L 38, 13.2.1997, p. 1. Regulation supplemented by Regulation (Euratom, ECSC, EEC) No 1307/87 (OJ L 124, 13.5.1987, p. 6) and last amended by Regulation (Euratom, ECSC, EC) No 2762/98 (OJ L 346, 22.12.1998, p. 1).

(4) OJ L 56, 4.3.1968, p. 8. Regulation as last amended by Regulation (Euratom, ECSC, EC) No 2762/98 (OJ L 346, 22.12.1998, p. 1).

(5) The Commission is preparing a proposal incorporating allowances for Finland, Austria and Sweden.

ANNEX

>TABLE>