1. Administrative Council (for decision) 2. Budget and Finance Committee (for information) SUMMARY

Transcription

1 CA/97/17 Orig.: en Munich, SUBJECT: SUBMITTED BY: ADDRESSEES: Adjustment with effect from 1 July 2016 and 1 July 2017 of salaries and other elements of the remuneration of permanent employees of the European Patent Office and of pensions paid by the Office. President of the European Patent Office 1. Administrative Council (for decision) 2. Budget and Finance Committee (for information) SUMMARY In accordance with the procedure for adjusting the remuneration of permanent employees of the European Patent Office, the present document contains a proposal for adjustment of remuneration from 1 July The specific indicator for 2016, reflecting the increase in purchasing power of national civil servants in the 8 reference countries, had to be re-calculated as a result of a retroactive salary increase for German civil servants. (Article 7 of the salary adjustment procedure). The proposed adjustment amounts to +0.4% in all basic salary scales not already limited by Article 8 (the moderation clause). Allowances expressed in absolute terms are to be adjusted in the same way. With effect from 1 July 2017, the proposed adjustments amount to +1.4% in the basic salary scales for Belgium, +3.4% in the scales applicable in Germany, +3.0% in the scales applicable in the Netherlands and +3.3% for those applicable in Austria. The allowances expressed in absolute terms are to be adjusted accordingly. CA/97/17 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 2 A. SPECIFIC INDICATOR IN B. SPECIFIC INDICATOR IN C. INFLATION IN BELGIUM (HICP) AND PURCHASING POWER PARITY COEFFICIENTS FOR D. MODERATION AND EXCEPTION CLAUSES 4 E. RESULTS FOR 1 JULY F. ADJUSTMENT OF REMUNERATION AT 1 JULY a) Introductory Remarks 5 b) Retroactive Salary Adjustment with effect from 1 July c) Salary Adjustment with effect from 1 July VI. ALTERNATIVES 11 VII. FINANCIAL IMPLICATIONS 11 VIII. LEGAL BASIS 11 IX. DOCUMENTS CITED 11 X. RECOMMENDATION FOR PUBLICATION 11 ANNEX 1 TREND OF HARMONISED INDEX OF CONSUMER PRICES JUNE 2016 JUNE ANNEX 2 SPECIFIC INDICATOR ANNEX 3 EVOLUTION OF PURCHASING POWER PARITY COEFFICIENTS 14 ANNEX 4 SPECIFIC INDICATOR PART II 16 CA/97/17 e

3 PART I I. STRATEGIC/OPERATIONAL 1. Operational. II. RECOMMENDATION 2. It is recommended that all salaries and allowances, that are either salary-related or specified in Table 5, of employees of the European Patent Office be retroactively increased by +0.4%, with effect from 1 July 2016, in accordance with Article 7 of the salary adjustment procedure. 3. It is recommended that the salaries and allowances, that are either salary-related or specified in Table 10, of employees of the European Patent Office be increased by +1.4% for Belgium, by +3.4% for Germany, by +3.0% for the Netherlands and by +3.3% for Austria, effective from 1 July 2017, in line with the results of the procedure. 4. The Administrative Council is invited to approve the draft decision in Part II of this document. III. MAJORITY NEEDED 5. A majority of three quarters of the votes is necessary. IV. CONTEXT 6. The annual review of salaries payable to permanent employees of the European Patent Office is governed by the procedure adopted by the Administrative Council (CA/D 20/88), amended in 2002 (CA/D 8/02) and in 2007 (CA/D 31/07) and most recently amended as from 1 July 2014 (CA/D 3/14). The remuneration is adjusted in December each year with effect from 1 July of that year. 7. In accordance with Article 1(3) of the procedure, the annual salary adjustments have been submitted to the Advisory Group on Remuneration (or "3 Wise Men"), enabling them to confirm (see report, under V.F below) that the proposals are consistent with the provisions of the procedure. CA/97/17 e 1/29

4 V. ARGUMENTS 8. Elements of the adjustment are outlined in parts A to F below. A. SPECIFIC INDICATOR IN The specific indicator is calculated using data supplied by the competent authorities in the eight reference countries to measure real changes (in terms of purchasing power) in net remuneration levels in the central government services of those countries. 10. As a basis for the calculation of the change in the relevant net remuneration levels in Germany in 2017, the German authorities supplied revised figures for the net remuneration levels in 2016 as a result of a retroactive payment (effective from March 2016) made to German civil servants in the second half of Although it had already been announced at the time of last year s calculation, no official confirmation of this increase had been received and thus the +2.2% increase was not taken into account in the calculation of the 2016 specific indicator. The corresponding change was already anticipated by the Advisory Group on remuneration in its 2016 report (CA/64/16, Part E). 11. Article 7 of the procedure provides for the salary scales in force to be modified if the information supplied for a given country is corrected with retroactive effect. 12. The specific indicator for 2016 has been recalculated using the corrected data and the revised specific indicator for 2016 is now (see Annex 4), compared with101.4 in the calculation presented in document CA/64/ Other elements used in the calculation of the adjustment applicable from 1 July 2016 (the Harmonised Index of Consumer Prices (HICP) for Belgium and the purchasing power parity coefficients) are not affected. 14. In accordance with Articles 2 and 3 of the procedure, combining the new specific indicator (101.8) with the HICP for Belgium gives rise to an additional adjustment of +0.4% in the basic salary scales and allowances for Belgium. CA/97/17 e 2/29

5 15. The application of the unchanged purchasing power parity coefficients means that the basic salary scales and allowances that are either salary-related or correspond to those specified in Table 5 in the other countries must also be adjusted by +0.4%, within the restrictions of Article 8 of the adjustment procedure (the moderation clause). The application of Article 8 results in a restriction of the increase for the Netherlands for 2016 and so the salary scales for 2016 for this country remain unchanged. The basic salary scales and allowances for Belgium, Germany, the Netherlands and Austria, effective from 1 July 2016, are presented in Tables 1 to 5. B. SPECIFIC INDICATOR IN The specific indicator is calculated using data supplied by the competent authorities in the eight reference countries to measure real changes (in terms of purchasing power) in net remuneration levels in the central government services of those countries. All official data used for the calculations are provided and certified by the corresponding national ministries. These are automatically taken over by the EPO for calculation of the adjustments. 17. The Harmonised Index of Consumer Prices (HICP) used to deflate the evolution of salaries in the reference countries in 2017 and to calculate the trend in real terms, as communicated by the International Service for Remunerations and Pensions (ISRP), are shown in Annex The specific indicator for 2017 is calculated to be 99.9, which signifies a very slight decrease of -0.01% in purchasing power (see Annex 2). The details per country are presented in Annex 2 to the report of the Advisory Group on Remuneration. C. INFLATION IN BELGIUM (HICP) AND PURCHASING POWER PARITY COEFFICIENTS FOR Following the recommendation of the Advisory Group on Remuneration in their report of April 2014, the Administrative Council approved the use of the Harmonised Index of Consumer Prices (HICP) for Belgium in place of the Brussels International Index as a measure of inflation (cf. CA/D 3/14). This year, the HICP for Belgium is (see Annex 1). CA/97/17 e 3/29

6 20. The purchasing power parity coefficients for the other countries (with reference to Belgium) have been supplied by the International Service for Remunerations and Pensions and calculated in collaboration with Eurostat and the national statistical offices (see Annex 3). 21. The purchasing power parity coefficient increased in all three host countries: by +2.0% for Germany, by +1.9% for Austria and by +0.4% for the Netherlands. D. MODERATION AND EXCEPTION CLAUSES 22. The adjustment procedure approved by the Administrative Council in 2014 (cf. CA/D 3/14) introduced two new clauses which are outlined below. 23. Article 8 (the moderation clause) of the procedure limits any salary increase to +/-2% of HICP in any given EPO contracting state. 24. As the results of the salary adjustment procedure in the Netherlands, including the carry-over from 2016, lead to an increase of more than +2% above local HICP inflation, the moderation clause will be applied and +0.9% will be carried over and included in the salary adjustment of As well as the Netherlands, moderation will be applied to the salary scales and allowances for Ireland, Sweden, Portugal, Denmark, Hungary, Estonia, Malta and Lithuania. 25. Article 9 of the procedure (the exception clause) requires consideration of the annual evolution of the gross domestic product (GDP) of all EPC contracting states, measured to the end of the previous calendar year. According to this article, any salary increase would be frozen if the evolution of the collective GDP were below -1%. 26. For 2016, the collective evolution over 34 of all 38 EPC contracting states was calculated to be +1.9% (real) on 1 October 2017, using data made publicly available by Eurostat. Therefore the exception clause should not be applied to the salary adjustment effective from 1 July CA/97/17 e 4/29

7 E. RESULTS FOR 1 JULY In accordance with Article 2 of the procedure, combining the specific indicator (99.9) with the Harmonised Index of Consumer Prices (HICP) for Belgium (101.5) gives rise to an overall adjustment of +1.4% in the basic salary scales and allowances for Belgium. 28. In accordance with Article 4 of the procedure, combining the effects of the specific indicator, the HICP for Belgium and the purchasing power parity coefficients results in adjustments of +3.4% for Germany, +3.9% for the Netherlands and +3.3% for Austria. After the moderation clause has been applied to the salary scales in the Netherlands, the final adjustment amounts to +3.0% for that country. For reasons connected with the structure of the scales and the rounding operation, the exact adjustment for each grade and step may vary slightly around these percentages. The salary scales and allowances for each country with effect from 1 July 2017 are presented in Tables 6 to The Administrative Council is requested to approve the proposed adjustments by adopting the draft decision in Part II below. F. ADJUSTMENT OF REMUNERATION AT 1 JULY 2017 Munich, 8 November 2017 From: To: Advisory Group on Remuneration President of the Office a) Introductory Remarks 30. As instructed by you in accordance with Article 1(3) of the procedure for adjusting the remuneration of permanent employees of the Office, we have examined the adjustment as from 1 July CA/97/17 e 5/29

8 31. The procedure for adjusting the EPO salaries was adopted by the Administrative Council in June 2014 (CA/D 3/14) and is applied as follows: With effect from 1 July of each year and referring to 1 July of the previous year, the basic salary scales and allowances expressed in absolute terms for Belgium are adjusted by multiplying those scales by the product of the HICP for Belgium and the specific indicator. The specific indicator is the methodological tool allowing the implementation of the principle of parallel development in real terms of the salaries of national central government civil servants and of the permanent employees of the EPO. The method of calculation is outlined in Article 3 of the EPO adjustment procedure, the necessary data being submitted by a selection of member states. The related weightings given to each of the 8 reference countries are: Belgium: 7.0%, France: 16.3%, Germany: 19.8%, Italy: 15.0%, Luxembourg: 5.2%, Netherlands: 8.2%, Spain: 11.9%, United Kingdom: 16.6% To obtain the basic salary scales and allowances expressed in absolute terms applicable on 1 July in a member state other than Belgium, the basic salary scales applicable in Belgium at that date are multiplied by the coefficient of purchasing power parity calculated with reference to Brussels. The coefficients of purchasing power parity are calculated by the International Service for Remunerations and Pensions (ISRP) in collaboration with the Statistical Office of the European Union (Eurostat) in accordance with the methodology approved by the decision-making bodies of the Union, and after national statistical authorities have been consulted on the results. The HICP for Belgium is calculated by Eurostat. All scales thus calculated are subject to the provisions of the moderation clause, as defined in Article 8 of the adjustment procedure, which means that, if applicable, the adjustment percentage is limited to +/-2% of HICP. In the following chapters, the reference to articles must be understood as referring to the relevant procedure. CA/97/17 e 6/29

9 b) Retroactive Salary Adjustment with effect from 1 July As noted in our report of 2016, last autumn it had already been announced that German civil servants would receive an increase of +2.2%, retroactive to March 2016 (thus falling into the EPO reference period for 2016). However, at the time of calculation, no official confirmation of this increase had been received and thus the 2.2% increase was not taken into account in the calculation of the 2016 specific indicator. 33. Article 7(1) of the adjustment procedure defines provision for a retroactive correction to the salary scales and therefore a retroactive calculation for 2016 has been made during this year s adjustment process. 34. The result of this retroactive adjustment is that the specific indicator for 2016 is increased from to (see Annex 4). The salary scales for all countries are therefore increased by 0.4%, effective from 1 July The resulting salary scales and allowances, as from 1 July 2016, are set out in Tables 1 to 5. c) Salary Adjustment with effect from 1 July We have examined the following with regard to the application of the salary adjustment procedure: the national Harmonised Indices of Consumer Prices, provided by Eurostat (which are used to calculate the development of national salaries in real terms for each reference country), including the HICP for Belgium (101.5, previous year = 100), as supplied by the ISRP in accordance with Article 5 of the salary adjustment procedure (Annex 1); the calculation of the specific indicator, along the lines set out in Article 3 of the salary adjustment procedure, on the basis of the data officially communicated by the national authorities of the eight reference countries to the EPO, the ISRP or Eurostat. The specific indicator thus calculated is 99.9 (Annex 2); CA/97/17 e 7/29

10 the coefficients of purchasing power parity supplied by the ISRP in accordance with Article 5 of the salary adjustment procedure. In Annex 3, the percentage change between the current and the proposed coefficients of purchasing power parities is indicated. 37. In the calculation of the specific indicator, the double counting of the variations in social security contributions has been neutralised, as described in CA/D 31/07, in order to better observe the principle of parallelism. The double counting effects this year, deriving from changes in contribution to a number of insurances and compulsory social security schemes in 6 of the 8 reference countries, have an overall impact on the specific indicator of +0.2%. 38. National civil service data are generally sent directly by the appropriate government departments. However, the representative of the relevant Spanish government department had previously requested that the EPO receive Spanish salary data directly from the ISRP. Salary data from the UK are also received directly from the ISRP, who have the appropriate contacts within the UK. Double counting calculations for all countries are made by the ISRP. 39. In 2017, the value of the specific indicator is almost 100, indicating that, on average, national civil service salaries in the reference countries have evolved in line with inflation. This is due to the combined effect of four countries awarding salary increases or bonuses slightly higher than inflation to national civil servants (Germany, Belgium, France and Luxembourg), whilst the other four have either not awarded an increase during the reference period or have awarded an increase lower than current levels of HICP inflation. 40. The Group has also been informed that the structure of the national civil service salary scales of Belgium has been revised in the context of a career reform. However, as the changes are being phased in gradually, the old scales are still applicable to the majority of staff and, therefore, the Belgian civil service transmitted data showing the trend of salaries from 2016 to 2017 according to the old system. It is to be expected that the changes will be reflected in the data transmitted within the next few years. CA/97/17 e 8/29

11 41. The Group has also considered relative price inflation in each of the host countries (and compared to Belgium). The Harmonised Index of Consumer Prices (HICPs) pertaining to the reference period for each of the host countries are as follows: the HICP for Belgium is +1.5%, for Austria is +2.0%, for Germany is +1.5% and for the Netherlands is +1.0%. 42. In accordance with Article 5 of the salary adjustment procedure, the coefficients of purchasing power parities (PPP) are calculated by the ISRP in collaboration with Eurostat in accordance with the methodology approved by the decision-making bodies of the European Union (see Table 11). Annex 3 shows the changes in the PPPs from 2016 to The Group notes that there are now some differences between the purchasing power parity coefficients produced by ISRP and those produced by Eurostat, despite the two organisations working collaboratively and using the same methodology. This is primarily due to the additional calculation, introduced by Eurostat at the end of the process, to integrate an element of the inflation in Luxembourg, as now required by the EU salary adjustment procedure. 44. The purchasing power parity coefficients with respect to Brussels rose in all 3 places of employment: +2.0% for Germany, by +1.9% for Austria and by +0.4% for the Netherlands. With respect to the rent parity, the Advisory Group noted that rental prices in Germany are still increasing and the 6-year moving average is highly positive (+5.0%). In the Netherlands another increase in the rent parity was observed (+2.3%). In Austria, the rent parity increased (+3.3%), reversing the trend of the last two years. 45. Taken together, the specific indicator of 99.9 and the HICP for Belgium of gives rise to an overall adjustment of +1.4% in the scales and allowances for Belgium. The application of the corresponding parity coefficients leads to overall adjustments of +3.4% in the scales and allowances for staff in Germany and +3.3% for staff in Austria. For the Netherlands, the increase is +3.0% after application of the moderation clause (see paragraph 17). For reasons connected with the structure of the scales and the rounding operation, the exact adjustment for each grade and step may vary slightly around these percentages. The resulting salary scales and allowances, as from 1 July 2017, are set out in Tables 6 to 10. CA/97/17 e 9/29

12 46. The Group notes that Article 8 (the moderation clause), limiting any salary increase to +/-2% of HICP in any given EPO contracting state, has again been applied to the salary scales and allowances applicable in the Netherlands. This is the second time that the clause has been applied to an EPO place of employment, and hence to active staff. The salary scales affected last year were scales used for pensioners: Ireland, Iceland, Sweden, Malta, Portugal, Denmark, Turkey, Estonia, Luxembourg, Hungary and Norway. 47. After the retroactive adjustment to the salary scales of 2016, Lithuania and Germany were also impacted slightly by the moderation clause. In 2017, the moderation clause impacts the salary scales of the following countries as well as the Netherlands: Denmark, Ireland, Portugal, Sweden, Estonia, Lithuania, Hungary and Malta. 48. Salary adjustment percentages for these countries can be verified by reference to the respective HICP value shown in Annex The results in Germany and Austria for 2017 follow inflationary trends closely enough that the moderation clause does not need to be applied. 50. Article 9 (the exception clause) requires consideration of the annual change in the real gross domestic product (GDP) of EPC contracting states. If the change in the collective GDP were below -1%, any salary increase would be frozen. For 2016, the aggregate change for 34 of the 38 EPC contracting states (covering close to 100% of the total GDP of EPC countries) was calculated to be +1.9% in real terms on 1 October Therefore the requirements of the exception clause are not met for application to the salary adjustment effective from 1 July The Group notes that this year the nominal guarantee, to maintain the salary scales and allowances at their current levels, will apply to the salary scales of a number of pensioner countries, most notably those of Switzerland. 52. In the course of the review, the Group has ascertained that the proposals by the President, as made in the draft decision, are consistent with the current procedure for adjusting the remuneration of permanent employees of the European Patent Office. Richard Leblond Heinrich Lützel John Astin CA/97/17 e 10/29

13 VI. ALTERNATIVES 53. None. VII. FINANCIAL IMPLICATIONS 54. The impact of the 1 July 2017 salary adjustment on basic salaries, as shown in the draft 2018 authorisation budget, amounts to EUR 23.1m. VIII. LEGAL BASIS 55. Article 64 of the Service Regulations and the Implementing Rule to Article 64. IX. DOCUMENTS CITED 56. CA/D 20/88; CA/D 8/02; CA/D 31/07; CA/D 3/14; CA/D 12/16; CA/64/16; Article 64 of the Service Regulations; Implementing Rule to Article 64 of the Service Regulations. X. RECOMMENDATION FOR PUBLICATION 57. Yes. CA/97/17 e 11/29

14 ANNEX 1 TREND OF HARMONISED INDEX OF CONSUMER PRICES JUNE 2016 JUNE 2017 CA/97/17 e 12/29

15 ANNEX 2 SPECIFIC INDICATOR Specific Indicator Indicateur spécifique % LAND Gewichtung Ledige Verheiratete, zwei Kinder Gewicht. Durchschnitt weighting singles married, two children weighted average COUNTRY pondération célibataires mariés, deux enfants moyenne pondérée brutto netto* brutto netto* brutto netto* PAYS (1) % gross net* gross net* gross net* brut net* brut net* brut net* Deutschland Germany 19,8 102,26 100,65 102,19 100,78 102,21 100,74 Allemagne Spanien Spain 11,9 100,98 99,34 100,98 99,28 100,98 99,30 Espagne Frankreich France 16,3 102,79 101,52 102,65 101,68 102,70 101,63 France Italien Italy 15,0 100,00 99,07 100,00 99,04 100,00 99,05 Italie Niederlande The Netherlands 8,2 98,77 98,38 98,77 98,14 98,77 98,21 Pays-Bas Belgien Belgium 7,0 101,98 100,51 101,99 100,49 101,98 100,49 Belgique Luxemburg Luxembourg 5,2 103,34 103,85 102,25 102,46 102,57 102,87 Luxembourg Vereinigtes Königreich United Kingdom 16,6 100,61 98,52 100,61 98,10 100,61 98,23 Royaume-Uni Gewicht. Durchschnitt Weighted average ,33 100,02 101,24 99,89 101,27 99,93 Moyenne pondérée Errechneter spezifischer Indikator Calculated Specific Indicator = 99,93 Indicateur spécifique calculé Vorgeschlagener spezifischer Indikator Proposed Specific Indicator = 99,9 Indicateur spécifique proposé (1) = Gewichtung gemäß Artikel 3 (2) h) des Verfahrens / Weighting according to article 3 (2) h) of the procedure / Pondération conformément à l'article 3 (2) h) de la procédure. *net salaries shown net of taxes, other compulsory deductions and inflation (gross salaries are nominal, i.e. before inflation) CA/97/17 e 13/29

16 ANNEX 3 EVOLUTION OF PURCHASING POWER PARITY COEFFICIENTS Entwicklung der Kaufkraftparitäts-Koeffizienten am: Evolution of Coefficients of Purchasing Power Parities at: Évolution des coefficients de parité de pouvoir d'achat au : Entwicklung STAATEN COUNTRIES PAYS Evolution EUR EUR Évolution Belgium Belgien Belgique, Luxemburg Luxembourg 1 1 (%) Germany Deutschland Allemagne (1) 1,0511 1,0720 2,0 The Netherlands Niederlande Pays-Bas 1,0751 1,0795 0,4 Austria Österreich Autriche 1,0407 1,0603 1,9 Albania Albanien Albanie 78,670 78,830 0,2 Bulgaria Bulgarien Bulgarie 0,9958 1,0417 4,6 Croatia Kroatien Croatie 5,5068 5,5382 0,6 Cyprus Zypern Chypre 0, , ,3 Czech Republic Tschechische Republik République tchèque 19,770 20,543 3,9 Denmark Dänemark Danemark 9,857 9,9300 0,7 Estonia Estland Estonie 0, , ,8 Finland Finnland Finlande 1,1802 1,1956 1,3 Former Yugoslav Republic of Macedonia Ehemalige jugoslawische Republik Mazedonien ex-république yougoslave de Macédoine 30,770 30,540-0,7 France Frankreich, Monaco 1,1326 1,1441 1,0 Greece Griechenland Grèce 0, , ,9 Hungary Ungarn Hongrie 220,97 230,50 4,3 Iceland Island Islande 181,81 179,07-1,5 Ireland Irland Irlande 1,1784 1,1937 1,3 Italy Italien Italie, San Marino San Marino Saint-Marin 0,9746 0,9652-1,0 Latvia Lettland Lettonie 0,7252 0, ,9 Lithuania Litauen Lituanie 0,6921 0,7404 7,0 Malta Malte 0, , ,1 Norway Norwegen Norvège 12,724 12,893 1,3 Poland Polen Pologne 2,9353 2,9919 1,9 Portugal 0, , ,2 Romania Rumänien Roumanie 2,8720 2,9150 1,5 Serbia Serbien Serbie 63,510 65,120 2,5 Slovakia Slowakei Slovaquie 0, , ,4 Slovenia Slowenien Slovénie 0, , ,0 Spain Spanien Espagne 0, , ,9 Sweden Schweden Suède 11,969 12,404 3,6 Switzerland Schweiz Suisse, Liechtenstein 1,7278 1,7177-0,6 Turkey Türkei Turquie 2,1751 2,3638 8,7 United Kingdom Vereinigtes Königreich Royaume-Uni (2) 0, , ,9 Quelle: Internationaler Service für Gehälter und Pensionen (ISRP) Source: International Service for Remunerations and Pensions (ISRP) Source: Service International des Rémunérations et des Pensions (SIRP) (1) München (2) Reading. CA/97/17 e 14/29

17 ANNEX 4 SPECIFIC INDICATOR Spezifischer Indikator Specific Indicator Indicateur spécifique % LAND Gewichtung Ledige Verheiratete, zwei Kinder Gewicht. Durchschnitt weighting singles married, two children weighted average COUNTRY pondération célibataires mariés, deux enfants moyenne pondérée brutto netto* brutto netto* brutto netto* PAYS (1) % gross net* gross net* gross net* brut net* brut net* brut net* Deutschland Germany 19,8 102,11 101,97 102,06 102,08 102,08 102,05 Allemagne Spanien Spain 11,9 103,12 105,97 103,12 105,63 103,12 105,73 Espagne Frankreich France 16,3 100,52 100,43 100,50 100,27 100,50 100,32 France Italien Italy 15,0 100,00 100,20 100,00 100,20 100,00 100,20 Italie Niederlande The Netherlands 8,2 105,60 106,67 105,60 105,95 105,60 106,16 Pays-Bas Belgien Belgium 7,0 101,97 101,77 101,98 101,10 101,98 101,30 Belgique Luxemburg Luxembourg 5,2 99,13 99,71 99,25 99,85 99,22 99,80 Luxembourg Vereinigtes Königreich United Kingdom 16,6 100,69 100,50 100,69 100,21 100,69 100,29 Royaume-Uni Gewicht. Durchschnitt Weighted average ,54 101,94 101,53 101,75 101,54 101,80 Moyenne pondérée Errechneter spezifischer Indikator Calculated Specific Indicator = 101,80 Indicateur spécifique calculé Vorgeschlagener spezifischer Indikator Proposed Specific Indicator = 101,8 Indicateur spécifique proposé (1) = Gewichtung gemäß Artikel 3 (2) h) des Verfahrens / Weighting according to article 3 (2) h) of the procedure / Pondération conformément à l'article 3 (2) h) de la procédure. *net salaries shown net of taxes, other compulsory deductions and inflation (gross salaries are nominal, i.e. before inflation) CA/97/17 e 15/29

18 PART II Draft DECISION OF THE ADMINISTRATIVE COUNCIL of [date of decision] adjusting with effect from 1 July 2016 and 1 July 2017 the salaries and other elements of the remuneration of permanent employees of the European Patent Office, and the pensions paid by the 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 (hereinafter referred to as "the Service Regulations") and in particular Articles 64(2), (4) and (6) and 66(1) thereof, Having regard to the procedure for adjusting the remuneration of permanent employees of the European Patent Office (hereinafter referred to as "the salary adjustment procedure"), Having regard to the Pension Scheme Regulations of the European Patent Office and in particular Articles 33 and 36 thereof, and to the New Pension Scheme Regulations of the European Patent Office and in particular Articles 27 and 30 thereof, Having regard to the opinion of the independent experts referred to in Article 1(3) of the said salary adjustment procedure, On a proposal from the President of the European Patent Office, submitted after consulting the General Consultative Committee, HAS DECIDED AS FOLLOWS: CA/97/17 e 16/29

19 Article 1 The report by the President of the European Patent Office on the adjustment of the remuneration of permanent employees of the Office is noted and the proposals contained therein are approved. Article 2 With effect from 1 July 2016, the monthly salary scales in Annex III A to the Service Regulations shall be replaced by the scales shown in Tables 1 to 4 annexed to this decision or, as the case may be, drawn up in accordance with Article 4 of the salary adjustment procedure, using the coefficients of purchasing power parity shown in CA/D 12/16. Article 3 With effect from 1 July 2016, the amounts for the dependants' allowance, the birth grant, the supplement to the expatriation allowance and the language allowance in Annex III B to the Service Regulations shall be replaced by the amounts shown in Table 5 annexed to this decision or, as the case may be, calculated in accordance with Article 4 of the salary adjustment procedure, using the coefficients of purchasing power parity shown in CA/D 12/16. Article 4 With effect from 1 July 2017, the monthly salary scales in Annex III A to the Service Regulations shall be replaced by the scales shown in Tables 6 to 9 annexed to this decision or, as the case may be, drawn up in accordance with Article 4 of the salary adjustment procedure, using the coefficients of purchasing power parity shown in Table 11 annexed to this decision. Article 5 With effect from 1 July 2017, the amounts for the dependants' allowance, the birth grant, the supplement to the expatriation allowance and the language allowance in Annex III B to the Service Regulations shall be replaced by the amounts shown in Table 10 annexed to this decision or, as the case may be, calculated in accordance with Article 4 of the salary adjustment procedure, using the coefficients of purchasing power parity shown in Table 11 annexed to this decision. CA/97/17 e 17/29

20 Article 6 Articles 2 and 3 shall apply as from 1 July Articles 4 and 5 shall apply as from 1 July This decision shall enter into force on [date of decision]. Done at Munich, [date of decision] For the Administrative Council The Chairman Christoph ERNST CA/97/17 e 18/29

21 Tabelle 1 - Table 1 - Tableau 1 Gross and basic monthly salary scales BELGIUM / BELGIEN / BELGIQUE Währung / Currency / Monnaie: EUR Besoldungsgruppe Gehaltsstufe 1 Gehaltsstufe 2 Gehaltsstufe 3 Gehaltsstufe 4 Gehaltsstufe 5 Grade Step 1 Step 2 Step 3 Step 4 Step 5 Echelon 1 Echelon 2 Echelon 3 Echelon 4 Echelon , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,74 * Gross salaries are shown in bold type, the corresponding net (basic) salary is shown in italics underneath. All amounts are monthly CA/97/17 e 19/29

22 Tabelle 2 - Table 2 - Tableau 2 Gross and basic monthly salary scales GERMANY / DEUTSCHLAND / ALLEMAGNE Währung / Currency / Monnaie: EUR Besoldungsgruppe Gehaltsstufe 1 Gehaltsstufe 2 Gehaltsstufe 3 Gehaltsstufe 4 Gehaltsstufe 5 Step 1 Step 2 Step 3 Step 4 Step 5 Grade Echelon 1 Echelon 2 Echelon 3 Echelon 4 Echelon , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,81 * Gross salaries are shown in bold type, the corresponding net (basic) salary is shown in italics underneath. All amounts are monthly. CA/97/17 e 20/29

23 Tabelle 3 - Table 3 - Tableau 3 Gross and basic monthly salary scales THE NETHERLANDS / NIEDERLANDE / PAYS-BAS Währung / Currency / Monnaie: EUR Besoldungsgruppe Gehaltsstufe 1 Gehaltsstufe 2 Gehaltsstufe 3 Gehaltsstufe 4 Gehaltsstufe 5 Grade Step 1 Step 2 Step 3 Step 4 Step 5 Echelon 1 Echelon 2 Echelon 3 Echelon 4 Echelon , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,06 * Gross salaries are shown in bold type, the corresponding net (basic) salary is shown in italics underneath. All amounts are monthly. CA/97/17 e 21/29

24 Tabelle 4 - Table 4 - Tableau 4 Gross and basic monthly salary scales AUSTRIA / ÖSTERREICH / AUTRICHE Währung / Currency / Monnaie: EUR Besoldungsgruppe Gehaltsstufe 1 Gehaltsstufe 2 Gehaltsstufe 3 Gehaltsstufe 4 Gehaltsstufe 5 Grade Step 1 Step 2 Step 3 Step 4 Step 5 Echelon 1 Echelon 2 Echelon 3 Echelon 4 Echelon , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,14 * Gross salaries are shown in bold type, the corresponding net (basic) salary is shown in italics underneath. All amounts are monthly. CA/97/17 e 22/29

25 Tabelle 5 - Table 5 - Tableau Belgien Deutschland Niederlande Österreich Land/Country/Pays Belgium Germany The Netherlands Austria Belgique Allemagne Pays-Bas Autriche Währung/Currency/Monnaie EUR EUR EUR EUR Auslandszulage Expatriation allowance Indemnité d'expatriation 1. Zulage gemäß Art. 72 Absatz 5 Allowance under Art. 72, paragraph 5 90,05 94,63 94,83 93,71 Allocation prévue à l'art. 72, paragraphe 5 Unterhaltsberechtigtenzulage Dependants' allowance Allocation pour personne à charge 2.1 Artikel 69 Absatz 6 Article 69, paragraph 6 320,65 336,99 337,69 333,70 Article 69, paragraphe Artikel 69 Absatz 11 Article 69, paragraph ,30 673,99 675,37 667,39 Article 69, paragraphe Artikel 70 Article ,65 336,99 337,69 333,70 Article Geburtenzulage Birth grant Allocation de naissance 3.1 Artikel 85 Article ,27 730,70 732,22 723,57 Article Sprachenzulage Language allowance Indemnité de langue 4.1 Artikel 75 Article ,18 122,10 122,35 120,91 Article 75 CA/97/17 e 23/29

26 Tabelle 6 - Table 6 - Tableau 6 Gross and basic monthly salary scales BELGIUM / BELGIEN / BELGIQUE Währung / Currency / Monnaie: EUR Besoldungsgruppe Gehaltsstufe 1 Gehaltsstufe 2 Gehaltsstufe 3 Gehaltsstufe 4 Gehaltsstufe 5 Step 1 Step 2 Step 3 Step 4 Step 5 Grade Echelon 1 Echelon 2 Echelon 3 Echelon 4 Echelon , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,08 * Gross salaries are shown in bold type, the corresponding net (basic) salary is shown in italics underneath. All amounts are monthly. CA/97/17 e 24/29

27 Tabelle 7 - Table 7 - Tableau 7 Gross and basic monthly salary scales GERMANY / DEUTSCHLAND / ALLEMAGNE Währung / Currency / Monnaie: EUR Besoldungsgruppe Gehaltsstufe 1 Gehaltsstufe 2 Gehaltsstufe 3 Gehaltsstufe 4 Gehaltsstufe 5 Grade Step 1 Step 2 Step 3 Step 4 Step 5 Echelon 1 Echelon 2 Echelon 3 Echelon 4 Echelon , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,72 * Gross salaries are shown in bold type, the corresponding net (basic) salary is shown in italics underneath. All amounts are monthly. CA/97/17 e 25/29

28 Tabelle 8 - Table 8 - Tableau 8 Gross and basic monthly salary scales THE NETHERLANDS / NIEDERLANDE / PAYS-BAS Währung / Currency / Monnaie: EUR Besoldungsgruppe Gehaltsstufe 1 Gehaltsstufe 2 Gehaltsstufe 3 Gehaltsstufe 4 Gehaltsstufe 5 Grade Step 1 Step 2 Step 3 Step 4 Step 5 Echelon 1 Echelon 2 Echelon 3 Echelon 4 Echelon , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,21 * Gross salaries are shown in bold type, the corresponding net (basic) salary is shown in italics underneath. All amounts are monthly. CA/97/17 e 26/29

29 Tabelle 9 - Table 9 - Tableau 9 Gross and basic monthly salary scales AUSTRIA / ÖSTERREICH / AUTRICHE Währung / Currency / Monnaie: EUR Besoldungsgruppe Gehaltsstufe 1 Gehaltsstufe 2 Gehaltsstufe 3 Gehaltsstufe 4 Gehaltsstufe 5 Step 1 Step 2 Step 3 Step 4 Step 5 Grade Echelon 1 Echelon 2 Echelon 3 Echelon 4 Echelon , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,45 * Gross salaries are shown in bold type, the corresponding net (basic) salary is shown in italics underneath. All amounts are monthly. CA/97/17 e 27/29

30 Tabelle 10 - Table 10 - Tableau Belgien Deutschland Niederlande Österreich Land/Country/Pays Belgium Germany The Netherlands Austria Belgique Allemagne Pays-Bas Autriche Währung/Currency/Monnaie EUR EUR EUR EUR Auslandszulage Expatriation allowance Indemnité d'expatriation 1. Zulage gemäß Art. 72 Absatz 5 Allowance under Art. 72, paragraph 5 91,31 97,87 97,67 96,81 Allocation prévue à l'art. 72, paragraphe 5 Unterhaltsberechtigtenzulage Dependants' allowance Allocation pour personne à charge 2.1 Artikel 69 Absatz 6 Article 69, paragraph 6 325,13 348,54 347,82 344,74 Article 69, paragraphe Artikel 69 Absatz 11 Article 69, paragraph ,27 697,09 695,63 689,47 Article 69, paragraphe Artikel 70 Article ,13 348,54 347,82 344,74 Article Geburtenzulage Birth grant Allocation de naissance 3.1 Artikel 85 Article ,99 755,74 754,19 747,51 Article Sprachenzulage Language allowance Indemnité de langue 4.1 Artikel 75 Article ,80 126,28 126,02 124,91 Article 75 CA/97/17 e 28/29