Revision as of 1 January 2016 of the rates of the daily subsistence allowance

Transcription

1 CA/73/15 Orig.: en Munich, SUBJECT: SUBMITTED BY: ADDRESSEES: Revision as of 1 January 2016 of the rates of the daily subsistence allowance President of the European Patent Office 1. Administrative Council (for decision) 2. Budget and Finance Committee (for information) SUMMARY Last year, the EPO Service Regulations relating to the adjustment of the daily subsistence allowance (DSA) were amended as a consequence of a change in methodology for setting and adjusting DSA rates introduced by the Co-ordinating Committee on Remuneration of the Co-ordinated Organisations (CCR). This change resulted in a substantial reduction of most of the rates for 2015 produced by the Co-ordinated Organisations as compared with Since this change in methodology did not necessarily meet the specific requirements of the EPO, the Administrative Council decided to adjust the DSA amounts for 2015 by applying the arithmetical average rate of annual salary adjustment for Austria, Germany and the Netherlands. After having further analysed the methodology and examined different solutions, the Office proposes to continue applying the method implemented in 2015 for the next five years, until the review of the overall salary adjustment procedure is due. Please also note that this document is being published prior to the meeting of the General Consultative Committee (GCC). CA/73/15 e

2 - I - TABLE OF CONTENTS Subject Page PART I 1 I. STRATEGIC/OPERATIONAL 1 II. RECOMMENDATION 1 III. MAJORITY NEEDED 1 IV. CONTEXT 1 V. ARGUMENTS 1 VI. ALTERNATIVES 3 VII. FINANCIAL IMPLICATIONS 3 VIII. LEGAL BASIS 3 IX. DOCUMENTS CITED 3 X. RECOMMENDATION FOR PUBLICATION 3 PART II 4 ANNEX 1 6 CA/73/15 e

3 PART I I. STRATEGIC/OPERATIONAL 1. Operational II. RECOMMENDATION 2. To adjust the 2015 DSA rates by the arithmetic average of the annual salary adjustment percentages in the three EPO host countries. This year, this average is +1.01%. III. MAJORITY NEEDED 3. Three quarters. IV. CONTEXT 4. Last year, Article 1(4) of the salary adjustment procedure (Imp. Rule to Article 64 ServRegs) was amended and the DSA amounts were adjusted by applying the arithmetic average rate of annual salary adjustment for Austria, Germany and the Netherlands (CA/81/14). This was an ad hoc decision of the Administrative Council following a change by the Co-ordinating Committee on Remuneration of the Coordinated Organisations (CCR) of the methodology for setting and adjusting DSA rates. This change in methodology had resulted in a substantial decrease in the rates for many countries, which did not reflect observed cost increases. 5. After having examined possible solutions in more detail, the Office came to the conclusion that last year's ad hoc measure could be applied for the duration of the procedure for adjusting remunerations, i.e. the next 5 years. V. ARGUMENTS 6. The CCR methodology used to calculate the rates of DSA used a combination of national civil service reimbursement rates, location surveys and private sector rates. A new methodology was approved by the CCR and used for the first time in CA/73/15 e 1/7

4 7. When the rates produced using this change in methodology were published by the CCR in November last year, in report No. 232, and subsequently made available to the EPO, the resulting reductions became obvious. 8. For example, the DSA rates produced by the new CCR methodology and applicable for travel to the EPO host countries were as follows: in Austria EUR 191 per day (compared with EUR 232 in 2014); in Germany EUR 218 per day (compared with EUR 238 in 2014); and in the Netherlands EUR 217 per day (compared with EUR 252 in 2014). 9. For 2015, therefore, it was proposed to apply an ad hoc adjustment of the rates, by applying the arithmetic average rate of annual salary adjustment for Austria, Germany and the Netherlands (CA/81/14). This was the method used by the Office to adjust some allowances. The arithmetic average of the rates of adjustment was +1.07%. 10. The Office committed to making new proposals in 2015 for updating the daily subsistence allowance amounts. 11. In the meantime, the Office has had the opportunity to analyse the issue in more detail and to look for a more permanent solution. 12. The Office looked for a technically simple and transparent method aimed at producing a reasonable evolution of the DSA rates. The practices applied in different international organisations have been examined. The conclusion is that methods vary considerably and are sometimes technically complex. 13. Altogether, the Office came to the conclusion that the method applied last year could be used for the duration of the current procedure for adjusting the remuneration of EPO employees, i.e. for the next 5 years. It will ensure a reasonable and broadly predictable evolution of the rates of daily subsistence allowance. It will make use of the results of the procedure for adjusting remuneration, which are confirmed by external experts each year before being submitted to the Administrative Council. CA/73/15 e 2/7

5 14. In the framework of the review of the procedure for adjusting remuneration (Article 10 of the Implementing Rule to Article 64 of the Service Regulations), the Office intends to assess again the appropriateness of the current method and propose amendments if necessary. 15. The rates of increase for 2015 are +0.7% for Austria, +0.9% for Germany and +1.5% for the Netherlands. The arithmetic average of these rates is 1.01% (see CA/72/15). 16. The table in Annex 1, therefore, shows the rates applicable in 2015, along with the rates increased by +1.01%. It is proposed that these increased rates apply from 1 January VI. ALTERNATIVES 17. N.A. VII. FINANCIAL IMPLICATIONS 18. An additional +1.01% on the current budget for DSA (approximately EUR 1.01m). VIII. LEGAL BASIS 19. Implementing Rule to Article 64 of the Service Regulations. IX. DOCUMENTS CITED 20. Implementing Rule to Article 64 of the Service Regulations; CCR report 224; CA/81/14, CA/72/15 X. RECOMMENDATION FOR PUBLICATION 21. Yes. CA/73/15 e 3/7

6 PART II Draft DECISION OF THE ADMINISTRATIVE COUNCIL of [date of decision] revising with effect from 1 January 2016 the rates of the daily subsistence allowance referred to in Article 78 of the Service Regulations for permanent employees of the European Patent Office THE ADMINISTRATIVE COUNCIL OF THE EUROPEAN PATENT ORGANISATION, Having regard to the European Patent Convention and in particular Article 33(2)(b) thereof, Having regard to the Service Regulations for permanent employees of the European Patent Office and in particular Article 78(2) thereof, as amended to Article 78(5) in CA/D 8/09, Having regard to the decision of the Administrative Council of 7 June 2002 (CA/D 8/02), as amended in CA/D 3/14, adopting the procedure for adjusting the remuneration of permanent employees of the European Patent Office, and in particular Article 1(5) of said procedure, Having regard to the recommendations in the 224th report of the Co-ordinating Committee on Remuneration, On a proposal from the President of the European Patent Office, submitted after consulting the General Consultative Committee, HAS DECIDED AS FOLLOWS: CA/73/15 e 4/7

7 Article 1 Annex V to the Service Regulations for permanent employees of the European Patent Office shall be replaced by the annex to this decision. Article 2 The amounts shown in the column headed "Rates plus +1.01% - Taux plus +1.01% " shall apply with effect from that date. This decision shall enter into force on [date of decision]. Done at Munich, [date of decision] For the Administrative Council The Chairman Jesper KONGSTAD CA/73/15 e 5/7

8 ANNEX 1 DAILY RATES OF SUBSISTENCE ALLOWANCE AT 1 JANUARY 2016 TAUX DES INDEMNITES JOURNALIERES AU 1er JANVIER 2016 COUNTRY - PAYS ALBANIA - ALBANIE ANDORRA - ANDORRE ARMENIA - ARMÉNIE AUSTRALIA - AUSTRALIE AUSTRIA - AUTRICHE AZERBAIJAN - AZERBAÏDJAN BELGIUM - BELGIQUE BOSNIA AND HERZEGOVINA - BOSNIE-HERZÉGOVINE BULGARIA - BULGARIE CANADA - CANADA CHILE - CHILI CROATIA - CROATIE CYPRUS - CHYPRE CZECH REPUBLIC - RÉPUBLIQUE TCHÈQUE DENMARK - DANEMARK ESTONIA - ESTONIE FINLAND - FINLANDE FORMER YUGOSLAV REPUBLIC OF MACEDONIA - EX-RÉPUBLIQUE YOUGOSLAVE DE MACÉDOINE Rates at Taux au Rates plus +1.01% Currency Taux plus +1,01% Monnaie EUR EUR EUR AUD EUR EUR EUR EUR EUR CAD CLP EUR EUR EUR DKK EUR EUR EUR FRANCE - FRANCE GEORGIA - GÉORGIE GERMANY - ALLEMAGNE GREECE - GRÈCE HUNGARY - HONGRIE ICELAND - ISLANDE IRELAND - IRLANDE ISRAEL - ISRAËL ITALY - ITALIE JAPAN - JAPON KOREA - CORÉE Paris/Paris EUR Others/Autres EUR EUR EUR EUR EUR EUR EUR ILS EUR JPY KRW CA/73/15 e 6/7

9 COUNTRY - PAYS LATVIA - LETTONIE LIECHTENSTEIN - LIECHTENSTEIN LITHUANIA - LITUANIE LUXEMBOURG - LUXEMBOURG MALTA - MALTE MEXICO - MEXIQUE MOLDOVA, REPUBLIC OF - RÉPUBLIQUE DE MOLDOVA MONACO - MONACO MONTENEGRO - MONTÉNÉGRO NETHERLANDS - PAYS-BAS NEW ZEALAND - NOUVELLE-ZÉLANDE NORWAY - NORVÈGE POLAND - POLOGNE PORTUGAL - PORTUGAL ROMANIA - ROUMANIE RUSSIAN FEDERATION - FÉDÉRATION DE RUSSIE SAN MARINO - SAINT-MARIN SERBIA - SERBIE SLOVAK REPUBLIC - RÉPUBLIQUE SLOVAQUE SLOVENIA - SLOVÉNIE SPAIN - ESPAGNE SWEDEN - SUÈDE SWITZERLAND - SUISSE TURKEY - TURQUIE UKRAINE - UKRAINE Rates at Taux au Rates plus +1.01% Currency Taux plus +1,01% Monnaie EUR CHF EUR EUR EUR MXN EUR EUR EUR EUR NZD NOK EUR EUR EUR EUR EUR EUR EUR EUR EUR SEK CHF EUR EUR UNITED KINGDOM - ROYAUME-UNI UNITED STATES - ÉTATS-UNIS London/Londres GBP Others/Autres GBP Washington/Washington USD New York/New York USD Others/Autres USD Article 78(4) ServRegs allows for an increase of up to 30% if the cost of a hotel proves to be more than 60% of the daily subsistence allowance rates above. CA/73/15 e 7/7