STAFF SALARIES, ALLOWANCES AND BENEFITS OUTLINE

Transcription

1 39th Session, Paris, C 39 C/34 8 August 2017 Original: English Item 10.2 of the provisional agenda STAFF SALARIES, ALLOWANCES AND BENEFITS Source: 38 C/Resolution 88. OUTLINE Background: 38 C/Resolution 88 authorizes the Director-General to continue to apply to the staff of UNESCO measures relating to salaries, allowances and other benefits adopted either by the United Nations General Assembly or, by virtue of the authority conferred upon it, the International Civil Service Commission. Purpose: This document informs the General Conference of decisions taken by the Director-General since its 38th session, to apply to the UNESCO staff members concerned, any measures as adopted by the General Assembly or ICSC. The financial and administrative implications of these measures were taken into account and already incorporated in the parameters of document 39 C/5. Decision required: paragraph At each of its sessions, the Director-General informs the General Conference of recent measures that she has authorized concerning the salaries and allowances of UNESCO staff. This authority derives from 38 C/Resolution 88 (see Annex I, Attachment 1). 2. In between sessions of the General Conference, the Director-General reports to the Executive Board on the annual reports of International Civil Service Commission (ICSC) and on measures on salaries, allowances and other benefits which she has applied following resolutions adopted by the General Assembly relating to the United Nations common system, or by the ICSC. Following the

2 page 2 submission of ICSC reports to its 199th and 201st sessions, the Executive Board invited the Director- General to continue to ensure UNESCO s participation in the work of the International Civil Service Commission and to take into its recommendations and the decisions of the United Nations General Assembly The relation between UNESCO and the ICSC derives from the agreement of UNESCO with the United Nations as approved by the General Conference on 6 December 1946, in particular from its Article XII. 2 (a) and (b) which provides that the United Nations and UNESCO agree to Consult together concerning the establishment of an International Civil Service Commission to advise on means by which common standards of recruitment in the secretariats of the United Nations and the specialized agencies may be ensured and concerning other matters relating to the employment of their officers, including conditions of service, duration of appointments, classifications, salary scales and allowances, retirement and pensions rights and staff regulations and rules with a view to securing as much uniformity in these matters as shall be found practicable The International Civil Service Commission (ICSC) was established in 1974 by the United Nations General Assembly 3 for the regulation and coordination of the conditions of service of the United Nations Common System. UNESCO accepted the Statute of the ICSC in 1975 through a decision of the Executive Board 4 by virtue of the authorization given to it by the General Conference to take such measures as may be necessary to take part in the work of the ICSC once established. UNESCO thus became part of the United Nations common system. 5. As part of the United Nations common system, UNESCO therefore follows General Assembly Resolutions and ICSC decisions regarding staff members salaries and entitlements. 6. Further information on UNESCO s relationship with the General Assembly and ICSC, and the Statute, role and function of ICSC, is presented in Annex I. An explanatory note on the approved methodology for setting the salaries of UNESCO staff is set out in Annex II. Review of the compensation package for International Professional staff (P and above) 7. Between 2013 and 2015, the ICSC carried out a comprehensive review of the common system compensation package for staff in the Professional and higher categories, to ensure that compensation for United Nations staff globally remains competitive and fit for purpose while ensuring overall cost containment. The final conclusions and recommendations of the ICSC 5 on the comprehensive review were reported to the General Assembly at its 70th session 6 in The measures approved by the United Nations General Assembly at its 70th session were implemented by UNESCO as follows: Unified salary scale and transitional measures 9. A revised unified net base salary became effective on 1 January 2017 and replaced the previous dual rate scale (single and dependency) (Annex III (a)). The revised salary scale, applying to all serving and newly recruited staff members, contains only one single salary rate, irrespective of dependency status. The revised scale consists of 13 steps for grades P1 to D1 and 10 steps for the D2 level. The grade and step matching of staff for conversion from the current to the new scale followed the instructions provided by the ICSC: EX/Decision 5.IV.C and 199 EX/Decision 5.III.C 2 Agreement between the United Nations and UNESCO, approved by the General Conference and by the United Nations General Assembly in December 1946 (in Basic Texts, Article XII, p.175). 3 See resolution 3357 (XXIX) of 18 December 1974 of the UN General Assembly 4 97 EX/Decision and 17 C/Resolution Annual Report of the International Civil Service Commission for the year 2015, Official Records of the General Assembly, Seventieth Session, Supplement No. 30 (A/70/30). 6 United Nations General Assembly resolution A/RES/70/244.

3 page 3 the transition of serving staff to the unified scale was implemented in order to avoid losses and minimize windfall gains (Annex III (b)), pay protection points were applied for the purposes of pay protection for staff presently on steps higher than those foreseen in the new salary scale (Annex III (a)). Staff assessment rates 10. The General Assembly approved the staff assessment rates to be used in conjunction with gross base salaries upon implementation of the unified salary scale as shown in Annex III (c). Step increments periodicity 11. A revised step periodicity became effective on 1 January For grades P1 to P5, withingrade step increments are granted annually from step I to step VII, and thereafter biennially. For grades D1 and D2, there is no change, with biennial steps being granted from step V and II respectively. As a transitional measure, the due dates of the within-grade increment communicated to staff members before 31 December 2016 were respected. Pensionable remuneration scale 12. The pensionable remuneration scale was introduced concurrently with the unified scale. It was further revised as of 1 February 2017 to reflect the revision of the post adjustment classification for New York (Annex III (d)). Spouse and single parent allowance 13. A separate allowance, set at 6% of net remuneration (base salary plus post adjustment), is provided to staff with a dependent spouse and to those who are single parents. In the latter case, no child allowance is payable for the first child. Child allowance and secondary dependent allowance 14. Staff members who were in receipt of a dependency rate salary in respect of the first child because their spouse earnings are above the established threshold at the time of conversion, receive a transitional allowance of 6% of net remuneration in respect of that child, as a transitional pay protection measure. In this case, no additional child allowance is paid in respect of that child. Transitional allowances will be gradually reduced, and will be replaced by the child allowance as soon as it becomes equal or less than the amount of the child allowance. 15. The dependent child and secondary dependent allowances are maintained. Education grant 16. The revised education grant scheme shall become effective for the school year in progress on 1 January 2018.It is based on one global sliding scale for reimbursement consisting of seven brackets, with declining reimbursement levels, and covers admissible expenses from primary, secondary and tertiary level education (Annex III (e)). The distinction by currency zones and varying reimbursable maxima levels is discontinued. Admissible expenses are limited to tuition and enrolment-related fees, as well as, where applicable, boarding expenses. 17. Eligibility to boarding related expenses are limited to staff serving in field locations whose children attend primary and secondary education institutions outside the staff member s duty station. No boarding expenses are paid in respect of children attending tertiary (post-secondary) education. Boarding related expenses are paid in the form of a lump sum of $5,000. The education grant travel is provided for one round trip for each scholastic year for child of a staff member in receipt of assistance with boarding expenses.

4 page The scheme of the special education grant for children with disabilities continues to apply subject to the overall global ceiling equal to upper limit of the sliding scale; reimbursement of boarding expenses will be based on the actuals up to the upper limit of the scale plus $5,000. Repatriation grant 19. Repatriation grant is payable starting on five years of expatriate service according to the current five-year payment schedule as of 1 July Staff on board prior to 1 July 2016 maintain their eligibility to the repatriation grant under the present schedule up to the number of years accrued at the time of implementation of the new scheme. Relocation related entitlements and field allowances and benefits 20. The following revised package came in force on 1 July 2016: (a) Settling-in grant (designed to cover initial or pre-departure expenses incurred by staff members on their appointment or transfer to another duty station) The settling-in grant replaced the assignment grant and is paid as follows: a lump sum equivalent to one month of base salary plus applicable post-adjustment (at the new duty station) and the DSA element equivalent to 30 days of local daily subsistence allowance for staff, plus 15 days of local subsistence allowance for each accompanying family member; (b) (c) The non-removal allowance is discontinued as of 1 July Staff who moved prior to the implementation of the new relocation package and are in receipt of the non-removal allowance continue to receive the allowance for up to five years at the same duty station, or until the staff member moves to another duty station; Relocation shipment Where foreseen, full removal of household goods continues to be provided, in accordance with the relevant applicable rules. (d) Hardship allowance (compensates for the degree of hardship at a duty station based on an assessment of local conditions) A flat amount, differentiated by the classification of duty station and grade of staff member is payable as of 1 July 2016 (Annex III (f)). (e) Non-family service allowance (compensates staff members for service in duty stations subject to specific Family Restrictions ) The additional hardship allowance was replaced with a non-family service allowance as of 1July Eligible staff with recognized dependants receive $1,650 per month ($19,800 per year); staff members with no dependants: $625 per month ($7,500 per year). (f) (g) A mobility incentive was introduced to replace the mobility allowance (Annex III (g)). The incentive is payable to staff members with at least five consecutive years of prior service in a United Nations common system organization, as of their second assignment, following a geographical move. Staff assigned to category H duty stations are not eligible to the incentive. The new mobility incentive is increased by 25% upon the fourth assignment and by 50% upon the seventh assignment. The accelerated home leave travel (12 months cycle) applies only to D and E category duty stations that do not fall under the rest and recuperation framework.

5 page The above-mentioned changes were incorporated into the relevant provisions of the Staff Rules and reported on in 39 C/33 (Report on Staff Regulations and Staff Rules). 22. These measures were taken into account in the parameters of document 39 C/5; the real impact on the overall staff costs can only be estimated at a later stage. The General Conference will be informed at its next session on the financial impact of the introduction of the revised Compensation package on the overall staff costs. Other measures implemented in 2016/2017 Measures applicable to Professional and higher category and General Service Category 23. The United Nations General Assembly at its 70th session approved the discontinuation of the freeze of the allowances (requested in General Assembly resolution 68/253) effective 1 January 2016 for the General Service and related categories, and effective 1 January 2017 for the Professional and higher categories. Conditions of service of staff in the Professional category and above Changes in Salaries and Allowances 24. The salaries and other conditions of employment of Professional and higher category staff are set in accordance with the Noblemaire principle, by comparison with employment conditions applicable in the highest paid national civil service (the federal civil service in the United States of America is used as the reference). In accordance with recommendations and decisions of the General Assembly 7 and ICSC, 8 the Director-General applied the following measures to Professional and higher category staff: Net/base salary 25. The net base/floor unified salary scale, previously approved by the General Assembly, increased on 1 January 2017 by 1.02%, as a result of a 1% increase in the pay of comparable staff in the United States federal civil service and small changes in tax in 2016 and by 1.08% on 1 January 2016 as a result of small changes in the federal and tax schedules in These increases were introduced on a no loss, no gain basis, whereby the increase in net base/floor salary was offset by a reduction in post adjustment, leaving net take-home pay unchanged. However, as net base salary is used to calculate repatriation and death grants and termination indemnity payments, these increased marginally as a result (the scale effective 1 January 2017 is attached as Annex III (a)). Post adjustment and Pensionable Remuneration Level of post adjustment in New York and pensionable remuneration 26. In resolution A/RES/71/264, the General Assembly reaffirmed that the range of 110 to 120 for the margin between the net remuneration of officials in the Professional and higher categories of the United Nations in New York and officials in comparable positions in the comparator civil service should continue to apply, on the understanding that the margin would be maintained at a level around the desirable midpoint of 115 over a period of time. The margin for the period from 1 January to 31 December 2016 was The General Assembly also noted the decision of the International Civil Service Commission to continue monitoring the level of the margin and to take the necessary corrective action under the operation of the post adjustment system should the trigger levels of 113 or 117 be breached. 7 GA/Resolutions and A/RES/70/244 (2015) and A/RES/71/264 (2016). 8 ICSC Annual Reports for 2015 (A/70/30) and 2016 (A/71/30).

6 page In order to ensure that the margin does not fall below 113, the post adjustment index for New York was increased by about 2.04% as of 1 February In accordance with the provisions of Article 54 (b) of the United Nations Joint Staff Pension Fund regulations (UNJSPF), the pensionable remuneration scale for staff members in the Professional and higher category is adjusted accordingly, and from the same date (Annex III (d)). Conditions of service of staff in the General Service category 28. In line with ICSC s approved methodology, net salaries of GS staff at Headquarters were increased by 1%, as approved by the Director-General for on 1 September 2016, with resulting corresponding increase in pensionable pay. The salary scale payable in Headquarters effective 1 September 2016 is set out in Annex IV. 29. Increases in the salaries and allowances of General Service staff serving in duty stations in the field were applied in accordance with local United Nations practice. Financial and administrative implications 30. The measures reported in this document fall under the staff costs budget. They were anticipated in document 38 C/5 and also taken into account in the parameters of document 39 C/5. The required enhancements for the implementation of the revised Compensation package were made to the finance/payroll system (SAP) within the set timeframe. Proposed resolution 31. As decisions taken by the General Assembly or ICSC affecting the salaries, allowances and benefits of staff members often come into effect when the General Conference is not in session, the General Conference is invited to consider adopting the following resolution: The General Conference, Having examined the report of the Director-General on staff salaries, allowances and benefits (39 C/34), Having taken into consideration recommendations and decisions of the General Assembly and the International Civil Service Commission covering the salaries, allowances and other benefits of staff of organizations who participate in the United Nations Common System of salaries, allowances and conditions of service, Noting the possibility that ICSC may, on its own initiative and by virtue of the authority conferred upon it by Article 11 of its Statute, adopt, decide or recommend to the General Assembly measures affecting staff salaries, allowances and benefits, 1. Endorses the measures already taken by the Director-General pursuant to the decisions and recommendations of the United Nations General Assembly and the International Civil Service Commission (lcsc), as set out in document 39 C/34; 2. Authorizes the Director-General to continue to apply to the staff of UNESCO measures of this kind that might be adopted either by the General Assembly or, by virtue of the authority conferred upon it, ICSC; 3. Invites the Director-General to report to the Executive Board on measures of this kind; and, if there are budgetary difficulties in applying these, to submit proposals to the Board for approval.

7 Annex I ANNEX I UNESCO, THE UNITED NATIONS GENERAL ASSEMBLY AND THE INTERNATIONAL CIVIL SERVICE COMMISSION IMPLICATIONS FOR ISSUES RELATING TO HUMAN RESOURCES 1. The vast majority of staff benefits and entitlements for United Nations organizations are determined under the UN common system compensation package approved by the UN General Assembly on the basis of recommendations from the ICSC. The 3 key articles of ICSC s Statute, accepted by UNESCO in 1975 (see Attachment 1) are as follows: Article 10 The Commission shall make recommendations to the General Assembly on: (a) (b) (c) (d) The broad principles for the determination of the conditions of service of the staff; The scales of salaries and post adjustments for staff in the Professional and higher categories; Allowances and benefits of staff which are determined by the General Assembly; Staff assessment. Article 11 The Commission shall establish: (a) (b) (c) The methods by which the principles for determining conditions of service should be applied; Rates of allowances and benefits, other than pensions, those referred to in article 109 (c), the conditions of entitlements thereto and standards of travel; The classification of duty stations for the purpose of applying post adjustments. Article 12 Make recommendations to Organizations on the salary scales for GS staff at HQs duty stations. 2. The attached table (Attachment 2) shows the various benefits and entitlements provided under the UN common system, the category of staff to whom they apply and the authority, role and competence of the General Assembly, ICSC, UNESCO s governing bodies and UNESCO s Director-General with regard to changes to those benefits and entitlements. 3. By a recurring resolution (the most recent text is included in Attachment 1) the General Conference has authorized the Director-General to implement General Assembly resolutions and ICSC decisions. 4. The vast majority of benefits and entitlements for UNESCO staff are provided for under the United Nations Common System. Changes and amendments to the compensation package can only be achieved through the General Assembly and the ICSC, as applicable. In this regard, ICSC has initiated a comprehensive review of the common system compensation package. The results of the review will be submitted to the United Nations General Assembly at its 70th session (end of 2015).

8 Annex I page 2 DECISIONS/RESOLUTIONS RELATED TO UNESCO S RELATIONSHIP WITH DECISIONS AND RECOMMENDATIONS OF THE GENERAL ASSEMBLY AND ICSC EX/Decision, 97th session of the Executive Board, June 1975 Participation of UNESCO in the work of ICSC (97 EX/38 and 97 EX/35) The Executive Board, 1. Having examined the report of the Director-General on the establishment of the ICSC; 2. Recalling Resolutions 23.2 and 28.1 adopted by the General Conference at its 17th/18th sessions resp.; 1. Having examined the Statute of ICSC as approved by the UN General Assembly resolution 3357 (XXIX), 2. Decides to accept the Statute of the ICSC on behalf of the Organization; 3. Authorizes the Director-General to notify the Secretary-General of the United Nations of the acceptance by the Organization of the Statute of ICSC, in accordance with Article 1 of that Statute. 2. General Conference Resolution 38 C/Res 88 (November 2015) Authorization of Director-General to implement General Assembly and ICSC decisions/ recommendations The General Conference, Having examined the report of the Director-General on staff salaries, allowances and benefits (38 C/41), Having taken into consideration the implementation of the most recent recommendations and decisions of the United Nations General Assembly and the International Civil Service Commission relating to the salaries, allowances and other benefits of staff of organizations which participate in the United Nations common system of salaries, allowances and conditions of service, Noting the possibility that the International Civil Service Commission (ICSC) may, on its own initiative and by virtue of the authority conferred upon it by Article 10 of its Statute, adopt, decide or recommend to the United Nations General Assembly measures affecting staff salaries, allowances and benefits, 1. Endorses the measures already taken by the Director-General pursuant to the decisions and recommendations of the United Nations General Assembly and the International Civil Service Commission (lcsc), as set out in document 38 C/41; 2. Authorizes the Director-General to continue to apply to the staff of UNESCO measures of this kind that might be adopted either by the United Nations General Assembly or, by virtue of the authority conferred upon it, the International Civil Service Commission; 3. Invites the Director-General to report to the Executive Board on measures of this kind and, if there are budgetary difficulties in applying these, to submit proposals to the Board for approval. Resolution adopted on the report of the APX Commission at the 13th plenary meeting, on 13 November 2016.

9 Annex I page 3 BENEFITS AND ENTITLEMENTS PROVIDED UNDER THE UN COMMON SYSTEM Staff benefit/entitlement (under UN common system) Benefit or entitlement Staff category eligible ICSC Salary scales Recommends salary scale Post Adjustment Prof level at each duty station Rental Subsidy Prof most amount Language Allowance GS amount Overtime GS conditions Special Post Allowance (for staff assuming higher-level duties) Dependency Benefits Education Grant (international) amount amount amount Pensions Establishes entitlement specifically linked to UN pension fund. RESPONSIBILITY General Assembly Approves (P staff) UNESCO Governing Bodies Must promulgate UNESCO Director-General Must give effect to scales recommended and approved by ICSC/GA. - - Must give effect to PA as issued by ICSC - - Must apply ICSC conditions. Authority relates to defining reasonable accommodation and establishing maximum reasonable rent for Paris - - Must apply ICSC rates of allowance. UNESCO has no language allowance for P staff - - Must follow ICSC. Authority to determine how to be compensated (e.g. compensatory time off). Approves for Prof - Must follow ICSC - Must follow GA and ICSC Approves - Must follow GA and ICSC Approves - Must follow GA and ICSC

10 Annex I page 4 ENTITLEMENTS RELATED TRAVEL, RELOCATION AND STAFF MOBILITY DSA Provides guidance on ICSC rates Mobility/Hardship Settling-in Grant Removal/ Shipment Benefit or entitlement (international) (international) (international) Staff category eligible amount amount most weight and volume limitations Approves amounts Staff benefit/entitlement (under UN common system) RESPONSIBILITY ICSC LEAVE General Assembly Norm is to follow ICSC rates (but can establish adhoc rates and negotiate rates to reduce hotel costs). Must follow GA and ICSC - - Must follow ICSC - - Must follow ICSC rules. Authority to determine practical implementation (e.g. lump sum in lieu of cost of organized shipment). UNESCO Governing Bodies UNESCO Director-General Annual leave conditions Home Leave (international) most conditions Sick Leave conditions Maternity, Paternity and Adoption Leave conditions Special leave conditions - - Must follow ICSC. Approves - Must follow GA and ICSC. Authority regarding lump sum payment - - Must follow ICSC. Authority to determine how entitlement is given. - - Must follow ICSC. - - Must follow ICSC. Authority to determine how entitlement is given, including whether with or without pay.

11 Annex I page 5 Official Holidays number away from Headquarters duty stations - - Establishes days to be observed in France (Staff Rule) SEPARATION PAYMENTS Commutation of annual leave maximum days that can be paid - - Must follow ICSC but can determine number of days within maximum set by ICSC Repatriation Grant Prof conditions Approves - Must follow GA and ICSC Termination Indemnity conditions Approves - Must follow GA and ICSC

12 Annex II ANNEX II NOTE ON THE METHODOLOGY FOR SETTING SALARIES OF UNESCO STAFF As UNESCO is part of the United Nations Common System, the salaries of its staff members are based on United Nations Common System methodology. 1. Salaries of International Professional and higher category staff Their salary is made up of two elements: Net base salary, which represents the minimum salary payable to staff at a duty station; Post adjustment, which reflects the cost of living in the duty station and ensures that staff have the same purchasing power wherever they work across the United Nations Common System. Net base salary The level of salaries for internationally-recruited professional United Nations staff is determined on the basis of the Noblemaire principle, which states that the international civil service should be able to recruit staff from all of its Member States, including the highest paid. In application of this principle, the salaries of Professional staff are set by reference to the highest paying national civil service. The International Civil Service Commission (ICSC) carries out periodic checks to identify which national civil service has the highest remuneration levels. The United States of America federal civil service has to date been taken as the highest paid national civil service (the comparator service). How is the net base salary scale established? The net base salary scale of professional United Nations staff applies equally in all duty stations worldwide, and is set by reference to the salaries paid to comparable staff in the United States federal civil service. The methodology provides for a margin of between 10% and 20% in favour of United Nations salaries, to provide some compensation for the expatriate nature of service in the United Nations. ICSC monitors the margin annually to ensure that it is maintained within the range 10% to 20%; and recommends changes to the salary scale if the margin falls outside the range. How is the net base salary scale updated? And how often is it updated? The net base salary scale is reviewed each year by ICSC, on the basis of salary increases received by comparable United States federal civil servants in the previous year. ICSC s recommendations are then submitted to the United Nations General Assembly for approval. But why are changes in the net base salary scale implemented on a no loss, no gain basis? The net base salary scale represents the minimum salary payable to staff across all duty stations. The purpose of changes in the salary scale is to maintain the level of the minimum United Nations salary in light of salary changes in the United States comparator service, rather than to award general salary increases applicable at all duty stations. (As noted above, the overall salary also includes post adjustment, which is updated in the light of changes in the cost-of-living at the duty station). In order to ensure that only the minimum salary is increased whenever the salary scale is updated, the practice of the General Assembly is to recommend that the increase in the net base salary scale be accompanied by a corresponding reduction in the post adjustment paid in each duty station worldwide, the no loss, no gain principle. In practice, this means that staff receive exactly the same overall remuneration before and after the change in the net base salary scale.

13 Annex II page 2 Why are there financial implications if the net base salary scale changes on a no loss no gain basis? The net base salary scale of Professional United Nations staff is also used to determine the amounts of the repatriation grant (payable when international Professional staff repatriate to another country on separation from an organization) and termination indemnity (paid when a contract is terminated before its expiry date). As the calculation of these two allowances is based on the net base salary scale alone, that is excluding post adjustment, any increase in the salary scale has a direct (if minimal) financial impact on staff costs. Post adjustment The post adjustment system ensures that Professional salaries have the same purchasing power at all duty stations. As the cost-of-living varies significantly between the different duty stations, overall Professional salaries (that is, net base salary plus post adjustment) are set at different levels at each duty station to compensate for observed differences in living costs. Differences in living costs are measured through periodic surveys conducted by ICSC at all duty stations every five years. These surveys measure the cost-of-living of a duty station relative to the cost-of-living at the base of the system (New York). The results of the cost-of-living comparisons are reflected in a post adjustment index for each duty station. In order to take account of local cost-of-living changes, the post adjustment indices are normally updated by ICSC every 12 months (but more frequently in duty stations with high inflation). And as the salaries of international Professional staff are calculated in United States dollars, but payable in local currency, the post adjustment mechanism is also used to protect salaries against exchange rate fluctuations. Who manages the post adjustment system? The management of the post adjustment system is the responsibility of the ICSC. Consequently, any changes in the post adjustment classification of duty stations are approved and promulgated monthly by the Chairman of ICSC. Under what authority are changes in net base salary and post adjustment implemented in UNESCO? The implementation of measures affecting salaries, allowances and benefits of staff in UNESCO, pursuant to General Assembly or ICSC decisions and recommendations, is approved by the Director-General, under the authority of a standard General Conference resolution, and in accordance with UNESCO s staff regulations. 2. Salaries of General Service (GS) and National Professional Officers (NPO) staff members Basis for establishing salary scales GS and NPO staff members are recruited locally. Their salaries and allowances are established in accordance with the Flemming Principle, which states that the conditions of service for locally recruited staff should reflect the best prevailing conditions found locally for similar work. How is the salary scale established? The salaries, allowances and conditions of employment of locally recruited GS and NPO staff members are established through periodic, comprehensive local salary surveys carried out among employers at each duty station. The salary survey methodology is developed by ICSC and approved by the General Assembly. The last survey was conducted in Paris during 2012 according to the new

14 Annex II page 3 methodology. The new frequency for conducting salary surveys in Headquarters locations is every eight to 10 years. How is the salary scale adjusted, and how often? The salary scales of locally recruited GS and NPO staff are adjusted by the results of the local salary surveys described above. In between these surveys, salary scales are adjusted every 12 months on the basis of either local salary indices (where these exist) or mini local salary surveys. Under what authority are changes in local General Service salaries implemented in UNESCO? The annual salaries of GS staff members at Headquarters are established by the Director-General, in accordance with decisions of UNESCO s General Conference, in order to maintain conformity between them and the best prevailing rates for comparable employment in the Paris area. In the field, the salaries of local staff members are established by the Director-General in accordance with United Nations practice. How are anticipated statutory increases factored into staff costs? The calculation of UNESCO s staff costs budget takes account of all of the evolutions that have already occurred in the above elements. The most recent base salary scales, the levels of post adjustment and pensionable remuneration, and recent trends in other components of staff costs are factored into the standard costs, which are calculated separately for each grade and duty station. As the budget is based on the price level (standard costs) forecast as at the beginning of the biennium in question, the calculations also take into account any future anticipated increases expected before the beginning of that biennium. This information is obtained from ICSC, to the extent possible, from official economic indices and also from an analysis of historic trends in each of the different elements of staff costs. Any statutory increase in staff costs that arise after the biennium has started must be covered from the separate budget appropriation Anticipated cost increases, upon submission of an explanation to the Executive Board and its approval.

15 Annex III ANNEX III Annex III (a) In addition, staff in Professional category and above receive a post adjustment amount that varies according to the duty station. Annex III (b) Grade and step matching at the time of transitioning to unified scale

16 Annex III page 2 Annex III (c) Annex III (d) Annex III (e) Claim amount in USD Education grant scheme Reimbursement rate (percentage) 0 11, ,601 17, ,401 23, ,201 29, ,001 34, ,801 40, > 40,601 0

17 Annex III page 3 Annex III (f) Hardship allowance Hardship category P1 P3 P4-P5 D1 and above A B 5,810 6,970 8,140 C 10,470 12,780 15,110 D 13,950 16,280 18,590 E 17,440 20,920 23,250 Annex III (g) Mobility Incentive P1-P3 $6,500 P4-P5 $8,125 D1 and above $9,750

18 Annex IV ANNEX IV Applicable to staff recruited on or after 1 January 2000 Applicable to staff on board on 31 December 1999 Printed on recycled paper