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Remuneration of civil servants - key indicators (Art. 65) (prc_rem)

Reference Metadata in Euro SDMX Metadata Structure (ESMS)

Compiling agency: Eurostat, the statistical office of the European Union

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The country specific indicator measures the annual evolution in the remuneration of national civil servants working in central public administration.

Each country indicator is calculated in nominal terms. Using the harmonised index of consumer prices, it is then expressed in real terms.

The global indicator is calculated as a weighted arithmetic mean of the individual country specific indicators, using the national gross domestic product expressed in purchasing power standards as weights.

NB. The time series of GDP statistics is regularly revised: the point-in-time snapshot used as weights to produce the global specific indicator for each annual reporting exercise is published in the annual report; it is not replicated in this dataset. 

The method used to establish the country specific indicator is to compare the average level of remuneration of national civil servants according to the legislation in force at 1st July in Year "X", with the average level of remuneration of the same national civil servants according to the legislation in force at 1st July in Year "X-1".

 

To compile this information, Eurostat carries out a detailed survey in cooperation with national statistical institutes and other national statistical authorities as appropriate.

National civil servants are categorised into "administrator-equivalents" and "assistant-equivalents" and "secretary/clerk equivalents" which are function groups defined in the Staff Regulations of officials and other servants of the European Union.

Within each function group category, for each staff grade the gross remuneration is identified including all relevant components. Statutory deductions are then deducted (eg. personal income tax, social security contributions, occupational pension contribution, healthcare insurance).

Applicable state benefits are then added (family and child allowances to which national civil servants are eligible like any other citizens). The result is a figure for net remuneration.

NB. Some Member States add such social benefits to gross remuneration, others show it as a separate component in computation of net remuneration. For this reason, only NET remuneration can be considered fully comparable across countries.

An overall average is then calculated using staff numbers as weights.

This average is then compared with the figure for the previous year.

The same staff numbers are used for both calculations, to avoid the impact of changes due to seniority, promotion, arrivals, departures, etc.

11 October 2022

See also section 18.1

Data is compiled in accordance with the Staff Regulations and the Eurostat methodology manual for the calculation of specific indicators.

 

a) Gross remuneration

All elements of remuneration that affect the purchasing power of national civil servants should be taken into account when calculating the gross remuneration. All general bonuses and premiums which are part of the salary, should be reported. In general, the following elements should be considered:

- basic salary;

- all allowances and bonuses (eg. general premiums, family allowances);

- non-pensionable lump sum payments (eg. annual holiday pay).

The following should not be included:

- regional allowances to compensate for 'cost of living' differences;

- increase due to promotion or seniority;

- person-specific special allowances (eg. individual merit bonus for exceptional performance).

 

b) Statutory deductions

The following amounts should be deducted from gross remuneration:

- general taxes on income;

- compulsory social security contributions (eg. retirement pension, healthcare insurance, unemployment insurance);

- compulsory occupational pension contributions;

- any other compulsory deductions.

The following should not be included:

- voluntary contributions.

 

c) State benefits

The following amounts should be added to gross remuneration where applicable:

- family allowances;

- child benefit;

 

d) Consumer price indices

The Harmonised Index of Consumer Prices is obtained from national statistical institutes.

 

e) Gross domestic product

The Gross Domestic Product expressed in purchasing power standards is obtained from national statistical institutes

 

 

The Joint Index is a Laspeyres-type index intended to measure the annual evolution of consumer prices in Brussels and Luxembourg.

The components of the Joint Index are the detailed sub-indices of the Harmonised Index of Consumer Prices for Belgium as established by the national authority and published on the Eurostat website; the detailed sub-indices of the Consumer Price Index for Luxembourg as established by the national statistical institute and published on their website; the total numbers of active international officials in Brussels and in Luxembourg as provided by Commission internal services; consumption expenditure weights for aggregation purposes as obtained from the last survey conducted by Eurostat amongst international staff in Brussels.

Each basic heading index is calculated as a weighted arithmetic mean of the Belgium and Luxembourg sub-indices, using the staff numbers as weights. The overall index is calculated as a weighted arithmetic mean of the  basic heading indices, using the consumption expenditure pattern as weights.

Remuneration is identified for each occupation grade in the national civil service.

Staff numbers are presented as a headcount.

The reference is the full population of national civil servants working in central public administration (as defined by s.1311 ESA 2010). This includes all administrative departments of the state and other central agencies whose competence extends normally over the whole economic territory."

Central government does not include the State and Local Governments and Social security funds in Member States which are covered by sub-sectors s.1312, s.1313 and s.1314 respectively.

From this group, the following occupations are then excluded:

- military;

- law and order (police, prison guards, frontier guards);

- healthcare (doctors, nurses);

- education (teachers, teaching assistants);

- ministers of religion;

- diplomats;

- magistrates.

If a sample is selected, it must be representative of the total population and should cover at least 75%. The basis for selecting the sample should be hold constant as this structure may have an influence on the calculation: where a change is implemented, this is done following a specific procedure.

Family status can affect both gross remuneration (e.g. entitlement to additional allowances) and net remuneration (e.g. entitlement to income exemptions or specific tax scales). In order not to make the system too complicated, information is compiled separately for just two household types: single unmarried officials, and married officials with a spouse and two children. If relevant, it should be assumed that the spouse and other dependents of married officials are not working. If relevant, it should be assumed that the children are of school-going age.

Specific indicators are established for each Member State.

The Joint Index is established for Brussels and Luxembourg.

Specific indicators are updated yearly with reference to June (1st July).

An earlier calculation with reference to December (1st January) is done using preliminary forecasts.

The precision of specific indicators is considered to increase with the level of aggregation. This means that the global specific indicator (EU average) will be more reliable, or precise, than the indicator for an individual Member State. Similarly, the overall average indicator for an individual Member State will be more reliable, or precise, than the indicator for "administrator-equivalents" which is one of the defined categories. Similarly, the indicator for "administrator-equivalents" will be more reliable than the indicator for individual occupation grades within that category.

 

The input data into the specific indicator calculation process comes from several sources, specifically from special price surveys of remuneration of national civil servants, harmonised index of consumer prices, gross domestic product. This makes it impossible to calculate any meaningful, numerical measure of error margins for these indicators.

 

The precision of the Joint Index is considered to increase with the level of aggregation. This means that the index at the level of total household consumption will be more reliable, or precise, than the index for "food and non-alcoholic beverages" which is one of the sub-aggregates of final household consumption (12 main COICOP groups). Similarly, the index for "food and non-alcoholic beverages" will be more reliable than the index for "bread and cereals" which is one of the analytical categories within that COICOP group.

The input data into the index calculation process comes from several sources, specifically, from national data collection on consumer goods and services, internal Commission sources on staff numbers, and special surveys of household consumption expenditure ("family budget surveys"). This makes it impossible to calculate any meaningful, numerical measure of error margins.

Specific indicators are expressed as an index number.

The calculation of the overall country specific indicator involves the following stages:

a) For each grade, remuneration for the minimum, middle, maximum steps for unmarried officials is averaged (unweighted arithmetic mean) with remuneration for married officials.

b) For each function group, the average remuneration is calculated as a weighted arithmetic mean, using the remuneration data from stage (a) and staff numbers in the sample as weights.

c) The average remuneration for total central public administration is calculated as a weighted arithmetic mean, using the remuneration data from stage (b) and staff numbers in the central public administration as weights.

d) Finally, the country specific indicator is calculated, using the remuneration data from stage (c) and the corresponding figure for the preceding year.

All input data needed for calculation of the country specific indicator is requested from each Member State by means of a standard remuneration questionnaire. A model of this questionnaire is included in the methodology manual on calculation of specific indicators and control indicators.

 

For the calculation of the Joint Index, a basic heading classification with 80 positions is used. These 80 basic headings are the same as the ones used for the separate calculation of correction coefficients (duty stations) in the European Union. The basic heading is the lowest level of aggregation, at which products are sampled and product prices collected. Below the basic heading level are the individual items of the product sample. For example, cheese is a basic heading and cheddar, camembert, feta, gorgonzola, gouda, etc. are individual products within it.

The Harmonised Index of Consumer Prices for Belgium is established in accordance with framework regulation 2494/1995 and subsequent implementing measures concerning harmonised indices of consumer prices. The latest HICP methodology manual was published as document KS-GQ-17-015-EN in 2018, and is available to download from the Eurostat website. The information is directly received by Eurostat from the Belgian authorities (Service public fédéral Economie, P.M.E., Classes moyennes et Energie, Direction générale Statistique (STATBEL), Direction thématique Economie, Division des prix). The information is then converted to the agreed 80 basic headings classification. It is important that indices established on a consistent basis are used (eg. in the event of rebasing).

The Luxembourg national index of consumer prices complies with the HICP except that its weighting structure excludes the consumer spending of non-residents on Luxembourg territory. The information is established by the Luxembourg authorities (Institut national de la statistique et des études économiques, “Statec”). A time series of the index values is available to download from the Statec dedicated page.

The information is then converted to the agreed 80 basic headings classification. It is important that indices established on a consistent basis are used (eg. in the event of rebasing).

Information about the numbers of EU officials working in Brussels and Luxembourg (all institutions combined, all categories) is extracted from the Eurostat PSEO database, which compiles information provided annually at 31 December about staffing levels by relevant departments of the EU institutions. The staff numbers at the base period are used (ie. for a movement between time t-1 and time t, the staff numbers available for time t-1 are used).

The consumption expenditure pattern for aggregation purposes is established on the basis of direct household budget surveys conducted at periodic intervals amongst international officials in Brussels. The average result is established as the consumption pattern until the next survey. These are the same Brussels consumption expenditure weights as are used in the separate calculation of correction coefficients (duty stations) in the European Union.

Yearly

Specific indicators for June (1st July) are published annually in autumn of the same year.

Specific indicator forecasts for December (1st January) are published annually in spring.

Specific indicators are specifically designed as temporal indicators. Whilst a common methodology is applied, the characteristics of each national civil service varies, which places a limit on the comparability of the results across countries. This said, by focusing on the evolution of remuneration, rather than the level of remuneration, the comparability can be assumed to be good.

The Joint Index is specifically designed as a temporal indicator or price evolution, which has important implications for the way in which items are selected and defined and other aspects of methodology. Unfortunately, no indicator exists that simultaneously captures spatial and temporal aspects in an adequate manner. Clearly a degree of care is therefore required when interpreting the comparative movement of the index.

Specific indicators are specifically designed as temporal indicators. The comparability over time can be assumed to be very good.

The b flag in 2013 for EU_V code means "Official sample defined in EU Staff Regulations for year in question". In recent times this sample has comprised the following Member States:

2004-2012 = 8 Member States: Belgium, Germany, Spain, France, Italy, Luxembourg, Netherlands, United Kingdom.

2013-2020 = 11 Member States: Belgium, Germany, Spain, France, Italy, Luxembourg, Netherlands, Austria, Poland, Sweden, United Kingdom.

From 2020 = 10 Member States: Belgium, Germany, Spain, France, Italy, Luxembourg, Netherlands, Austria, Poland, Sweden.

 

The Joint Index is specifically designed as a temporal indicator. The comparability over time can be assumed to be very good.