Salary Indexation Method

Friday 05 November 2021

This is the info from Eurostat!! It is in accordance with the “method”.

Extrait du rapport Eurostat :

UPDATE OF REMUNERATION AND PENSIONS IN BELGIUM AND LUXEMBOURG …The adjustment of the nominal net remuneration of EU officials in Brussels and Luxembourg with effect from July 2021, which is necessary to maintain a parallel development of purchasing power with the civil servants in the Member States, is equal to:

Annual update

((99,8 X 102,1)/100) – 100 = +1,9%

The same adjustment applies to the nominal pensions of retired EU officials in Belgium and Luxembourg.

REVIEW APPLICATION OF EXCEPTION CLAUSE FROM THE PREVIOUS ANNUAL EXERCISE In accordance with Article 11 of Annex XI to the Staff regulations, if there is a gap between the forecast used in the Annual Report for the previous year and the final GDP data for that calendar year, which would modify the original assessment whether the exception clause should have applied, a retroactive adjustment should take place.

The published real GDP growth rate (percentage change on previous year) for the EU as a whole for calendar year 2020 is -5.9%13. Although smaller than the negative GDP forecast which was used in the previous Annual Report (-8.3%), it confirms that the magnitude of the decrease exeeds -3.0%. Consequently, no retroactive correction is required to the suspension of the specific indicator component of the annual update which was established at 1 July 2020 (+2.5%) with only the cost of living component (+0.7%) being applied.

Combining the -5.9% movement established for 2020, with the +4.8% forecast for 2021, it is apparent that for 2021 the cumulative total is insufficient to recover the whole of the decrease registered in 2020, and has not yet reached the same level as before (i.e. 2019). On this basis, there will be no unwinding of the suspended 2020 payment as part of the 2021 annual adjustment. With forecast growth for 2022 of +4.5%, the cumulative total should then exceed the level prior to the 2020 decrease.

Based on the information which is currently available, it therefore seems likely that the suspended component will instead be paid alongside the 2022 annual adjustment.