Annex Supporting international mobility: calculating salaries

Transcription

1 Annex Supporting international mobility: calculating salaries Base salary refers to a fixed amount of money paid to an Employee in return for work performed and it is determined in accordance with the current salary scale. Base salary does not include benefits or any other potential compensation offered by the IFRC. The base salary of each employee is considered to have three components: a) Home housing norm where home is Geneva, as the base salary is defined by using a salary scale built on pricing from the Geneva job market. This also means that the housing norm reflects typical housing costs in Geneva, irrespectively of the actual country of assignment. b) Spendable income is the portion of salary used to cover typical household expenditure. c) Reserve pay is the balance, used for savings and other expenses, not included in the everyday expenses of the spendable income. Gross salary refers to the amount of money paid to an Employee after any possible adjustments for housing and cost of living differential have been applied. Gross salary is equal to Base salary minus the adjustments for housing and cost of living differential, if any. For employees based in Geneva, the 3 components above will not be noticeable as pay is delivered as a whole, hence base salary is equal to gross salary. On the other hand, employees located outside Geneva will receive a gross salary that is different from their base salary as it needs to take into account that: Their housing is provided and paid for by the organisation (while in Geneva employees pay for it out of their base salary). Cost of living in the country of assignment and Geneva may be different, with Geneva being more expensive in most cases. The underlying principle that drives these pay adjustments is to ensure that employees have the same purchasing power irrespectively of the country of assignment. page 1

2 Example An employee moving from Geneva to Benin will be treated equitably by receiving: the same reserve pay, with spendable income adjusted to reflect the relative cost of living differential between Geneva and Benin, plus an accommodation in Benin paid by the IFRC in lieu of the home housing norm Level E (Geneva) Base salary: CHF 10,000 Gross salary: CHF 10,000 Level E (Benin) Base salary: CHF 10,000 Gross salary: CHF 7,327 18% Home housing norm 1,800 Accommodation provided Spendable income 58.2% 5,820 x 85% 100% Spendable income 4,947 CHF 7, % Reserve pay 2,380 Same Reserve pay 2,380 page 2

3 Tables Table 1 Percentages of base salary generally used to cover Housing and Cost of Living expenses in Geneva Monthly Base Salary (in CHF) From To Home Housing norm (% of base salary to cover for cost of Housing in Geneva) Geneva Spendable Income (% of base salary indexed for Spendable Income in Geneva) 4,000 4, % 63.1% 5,000 5, % 60.8% 6,000 6, % 59.0% 7,000 7, % 58.8% 8,000 8, % 58.7% 9,000 9, % 58.3% 10,000 10, % 58.2% 11,000 11, % 58.1% 12,000 12, % 58.0% 13,000 13, % 57.8% 14,000 14, % 57.5% 15,000 15, % 57.4% 16,000 16, % 57.2% 17,000 17, % 57.1% 18,000 18, % 57.0% 19,000 19, % 57.0% 20,000 20, % 56.9% 21,000 21, % 56.9% 22,000 22, % 56.8% 23,000 23, % 56.7% page 3

4 Table 2 Cost of Living index of Countries of Assignment compared to Geneva as per Country Cost of Living index (compared to Geneva) Cost of Living index (compared to Geneva) capped at 85%* Afghanistan Albania Algeria Angola Argentina Armenia Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bhutan Bolivia Bosnia and Herzegovina Botswana Brazil Bulgaria Burkina Faso Burundi Cambodia Cameroon Canada Cape Verde Central African Rep Chad Chile China (Beijing) China (Hong Kong ) China (Macau) Colombia page 4

5 Comoros Congo, Brazzaville Cook Island Costa Rica Croatia Cuba Cyprus Czech Republic Dem Rep of the Congo Denmark Djibouti Dominican Republic Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Ethiopia Fiji Finland France Gabon Gambia Georgia Germany Ghana Greece Guatemala Guinea Guinea Bissau Guyana Haiti Honduras Hungary Iceland India Indonesia Iran Iraq Ireland page 5

6 Israel Italy Ivory Coast Jamaica Japan Jordan Kazakhstan Kenya Kiribati Korea, Dem Peoples Rep Korea, Republic of Kosovo Kuwait Kyrgyzstan Lao People's Dem Rep Latvia Lebanon Lesotho Liberia Libyan Arab Jamahiriya Lithuania Luxemburg Madagascar Malawi Malaysia Maldives Mali Malta Marshall Islands Mauritania Mauritius Mexico Micronesia Monaco Mongolia Montenegro Morocco Mozambique Myanmar Namibia Nepal page 6

7 Netherlands New Caledonia New Zealand Nicaragua Niger Nigeria Norway Oman Pakistan Palau Palestinian Territories Panama Papua New Guinea Paraguay Peru Philippines Poland Portugal Qatar Republic of Moldova Romania Russian Federation Rwanda Saint Lucia Samoa Sao Tome and Principe Saudi Arabia Senegal Serbia Seychelles Sierra Leone Singapore Slovakia Slovenia Solomon Islands Somalia South Africa South Sudan Spain Sri Lanka Sudan page 7

8 Suriname Swaziland Sweden Switzerland Syrian Arab Republic Tajikistan TFYR Macedonia Thailand Timor-Leste Togo Tonga Trinidad and Tobago Tunisia Turkey Turkmenistan Tuvalu Uganda Ukraine United Arab Emirates United Kingdom United Rep of Tanzania United States Uruguay Uzbekistan Vanuatu Venezuela Viet Nam Yemen Zambia Zimbabwe * note that it is best practice in European organisations to cap negative adjustments at 85% of home spendable income. page 8