Annual Salary Adjustment 2021 +1.9%

*Update 18.11.2021: this includes Contract Agents and this will be paid in December, thanks to everyone who got in touch!*

*Updates 19.11.2021: “Back to normal” in this case has to be interpreted as “the GDP is back to the pre-crisis level”. We have recovered some of the loss of 2020, but not all of it. We expect that we should go back to pre-crisis levels in 2022, at which point we should get the 2.5% update on top of whatever happens in 2022. [1]*

EU officials and agents will receive a 1.9% salary increase with retroactive effect from 1 July 2021 to maintain equality with the developments in the Member States. For more info, check the Eurostat Report on the 2021 annual update of remuneration and pensions of EU officials, 28.10.2021.

In the report it is said that:

‘the adjustment of the nominal net remuneration of active European officials in Brussels and Luxembourg, and of the nominal pensions of retired European officials in Belgium and Luxembourg, which is necessary to maintain a parallel development of purchasing power with the national civil servants in the Member States is equal to +1.9% (101.9)’ (p.4)

As you will most definitely remember, the Staff Regulations exception clause for the salary adjustment was activated last year due to a negative GDP development in the EU – simply put, the economy crashed. While the exception clause does not trigger this year, the recovery from last year is still insufficient to make up for the previous loss. The Eurostat report says that:

‘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.’ (p.15)

This means that this year we are not yet recovering the lost rate from 2020, but will probably do so in 2022.

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[1] Additional information:

  • The current pension contribution rate is 10.1%, which is/was valid for the period from 1.7.2020 to 30.6.2021 and is currently still applied to our salaries (until the next calculation in 2022). The previous rate was 9.7%. So, the increased pension contribution rate is already reducing our salaries.
  • The inflation rate is measured as the inflation in Belgium and Luxemburg, with the staff in both sites as a weight: roughly, 80% of the inflation in Belgium, 20% of the inflation in Luxembourg. The inflation so measured is 2.1%, according to Eurostat. And yes, we lose 0.2% purchasing power, because that is what has happened to civil servants in the member states.

  • Note that the coefficients have also changed in that Eurostat Report: Intra-EU: page 19; Extra-EU: page 27.

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