1. 2018 Eurostat Annual Report overview - A65 elements
Ag.14 / 16.1
Doc.A6465/19/05b
2018 Eurostat Annual Report overview - A65 elements
Working Group on Articles 64 & 65 of the Staff Regulations
Meeting in Luxembourg 26 & 27 March 2019

2. Content of this presentation
Reminder of timeline and report structure
Reminder who is affected by Annual Adjustment
Overview of A65 elements:
GSI for sample
Components of changes in nominal net salary
Comparative and analytical data
Do "moderation" and "exception" clauses apply?
Closer examination of the figures
Annex 2 report
Link to other presentations

3. Similar production timeline to previous
A year-long exercise!
Legal requirements respected
1st Extra-EU report via Ares (Aug-Jan)
Interim report via Ares January)
2nd Extra-EU report via Ares (Feb-Jun)
Annual report via Ares July)
Annex 2 report onto website 3

4. Only just achieved for 2018?
Extra #1 = 2 wks late (PY )
Interim = 3 wks late (PY )
Extra #2 = 3 wks late (PY )
Annual = 1 wks late (PY )
Analytic = 5 wks late (PY )
Annex 2 = 5 wks late (PY )
Reason:
50% staff cut (delayed recruit/non-replacement)
Competing (increased) workload

5. Subsequent steps also similar timeline
Since 2013 reform, automatic adoption procedure:
Interim report: as part of CC adjustment, only if % change exceeds threshold
Annual report: applies (subject to moderation/exception)
Eurostat calculation, followed by:
DGHR budget impact report
internal administrative processes
Council WPSR for information
Communication in Official Journal
pay slips
INTERIM
ANNUAL
April/May
November
[May]
[June]
December
June (retro)
December (retro) 5

6. Report structure and content6

7. Intermediate Reports Extra-EU #1 (ref. Aug-Jan) Interim (ref. January)
To DGHR
[social dialogue + administrative consultation]
Interim (ref. January)
To DGHR
Extra-EU #2 (ref. Feb-Jun)
To DGHR

8. Intra-EU intermediate report structure and content
2018 = 5th Intra-EU interim report under Staff Regulations as amended October 2013
Similar transparent content as last year's report, some new tables
MAIN TEXT
6 pages
0 tables
Annex 1 - SI
5 pages
4 tables
Annex 2 -
JBLI
3 pages
6 tables
Annex 3 - CC
9 pages
5 tables
Annex 4 -
CC+SI
1 page 24 15
+ non sample
+ PPP change section 8
PY = PY = 13

9. Extra-EU intermediate reports structure and content
2018 = 9th and 10th Extra-EU interim reports under Staff Regulations as amended October 2013
Similar transparent content as last year's reports, more explanatory text
Period
Main text
Annex
Aug-Jan
4 pages
13 pages
13 tables
(6 months)
Feb-Jun
11 pages
11 tables
(5 months)
Same structure as PY 9

10. Did 2018 Intermediate Reports result in CC changes?
Duty stations
Changes signalled
Intra-EU staff
33 (ie.31) -
Pensioners
28 (ie.26)
Extra-EU (1st)
145 (ie. 144)
4* + 15
Extra-EU (2nd)
5* + 32 PY - 26 45
* CC > 100
Restart WestBank (1st) + South-Sudan (2nd). None stopped. 10

11. Annual Report structure and content
2018 = Fifth annual report under Staff Regs as amended October 2013
Similar transparency content to last year’s report. New workflow for 7 MS. 2x new table (non- sample).
MAIN TEXT pages tables
Appendix 1a - SI pages tables
Appendix 1b - JBLI pages tables
Appendix 1c CC pages tables pages tables
+2 = 2a’ + 2b’
PY = PY = 55

12. Who/what is affected by the update
Basic salary of permanent officials and other servants (all duty stations)
Pensions of pensioners (all places of residence)
Various values and ceilings, eg.
Household allowance; Parental leave allowance; Child allowance; Education allowance
Expatriation allowance (minimum); Foreign residence allowance (minimum)
Travel allowance
Installation allowance
Unemployment allowance

13. Annual update 2018 (for Brussels/Luxembourg)
Real GSI %
Ann Adj DS %
JBLI %
99.6 × = +1.7%
"Implicit index" = total price effect = JBLI x PPP change, but =never a PPP change in Brussels/Luxembourg because reference location

14. Annual update 2018 (outside Brussels/Luxembourg)
= alternative presentation of formula on previous page
Ann Adj BXL %
PPP change %
Ann Adj DS %
× ???.? = ???.?

15. Estimate 2018 budgetary impact (DGHR) – A65 element
Ch. V
Other Ch.
Total
Expenditure
mn €
+28.5 mn €
mn €
Revenue (tax, etc)
+19.0 mn €
+4.8 mn €
+23.8 mn €
Sub-total
mn €
+33.3 mn €
mn € 15

16. Any constraints on implementation?
Moderation clause (GSI >2%)
Exception clause (GDP growth <0%)
Was previous year exception clause correct?

17. Q: Moderation clause applies 2018 ?
Calculated SI
1 July Year n
1 April Year n+1 1
-2% ≤ X ≤ +2%
100% - 2
OR ( X < -2% , X > +2% )
(100-a)% a%
* a= the proportion of the calculated adjustment using X which exceeds a similar calculation substituting the -2% or +2% ceiling for X
2018 real GSI value is -0.4% ie. situation 1

18. Q: Exception clause applies 2018 ?
Forecast GDP for Year n
1 July Year n
1 April Year n+1
Later* 1
0% ≤ X
100% - 2
-1.0% ≤ X < 0%
33%
67% 3
-3.0% ≤ X < -1.0% 4
X < -3.0%
* ie. when cumulative GDP is again positive
ECFIN spring forecast +2.3% ie. situation 1
ECFIN autumn forecast not yet published

19. Q: Exception clause 2017 confirmed ?
2017 Annual Report assessment: situation 1
Staff Regulations requires review against actual 2017 GDP evolution (Eurostat published data)
Conclusion: yes, clause was correctly applied

20. Closer examination of the figures20

21. Steps towards the definitive result…
Spring forecast (04/18)
Actual HICP (09/18)
Diff
Final report (10/18)
[a]
[b]
[b]-[a]
[c]
[c]-[a]
GSI nominal
-0.6
-0.4
+0.2
Inflation
+1.9
+2.1
GSI realterms
+1.3
+1.5
+1.7
+0.4 21

23. Components of nominal country SI 2018MS
Gross SI
comment
Stat. ded.
► Net SI BE
0.0
Last 'spilindex' May 2017
+1.8
Tax thresholds DE
+2.8
▲ 2.9% Mar 2018 (retro) .. ES
-1.1
Non repeat 2016 payment
+0.1
-1.0 FR
+0.8
Sample; PPCU reform
Pension, CSG
-0.2 IT
+3.7
Collective agreement Mar 2018
+3.8 LU
+1.1
▲ 1.5% Jan 2018
-0.1
+1.0 NL
+4.6
▲ 1.4% Jan 2017; ▲ 3.0% Jul 2018
-1.6
Pension
+3.0 AT
+2.3
▲ 2.3% Jan 2018
-0.4
+1.9 PL
+0.6
Movements in median pay SE
+2.6
multiple local agreements
0.1
+2.7 UK
+1.2
Sample; 2017 agreements
Wgt.avg. = +1.6

25. Comparative data Indicator Nominal Real 1 Net EU11 +1.6 -0.4 2
Tab. 1 2
Net EU 11 AD
+1.5
+0.5
Tab. 1.1 3
Net EU 11 AST 4
Net EU 11 SC
+2.2
+0.2 5
Net EU28
+2.5
+0.4 6
Gross EU11
+1.8
-0.3 7
Gross EU11 CI – CoE ..
+0.9
Tab. 1.6 8
Gross EU11 CI – LCI
+1.7
Tab. 1.7

26. Estimate of total 2018 impact (AA, PCR, etc)
Component
Nominal
Impact 1
Change to Gross Remuneration
(July 2018 Ann.Adj. in Brussels) =GSI+JBLI
+ 1.7
100% 2
Change to Pension Contribution Rate
(July 2018 = 10.0%, July 2017 = 9.8%)
-0.2
-0.14
70% 3
Change to Health insurance (= 1.7%)
0.0 4
Change to Accident insurance (= 0.1%) 5
Change to Personal Income Tax (scale) 6
Change to Special Levy (= 6.0%)
50%
TOTAL
+ 1.5
+ 1.56

27. Time series of nominal and real impact (2013=100)
Period
AA applied
PCR change
Levy change
TOTAL nominal
JBLI
Real
►2014
@70%
@50%
- 2.4
+ 0.9
- 3.3
►2015
+ 2.4
+ 1.2
►2016
+ 3.3
@70%
+ 3.5
+ 1.4
+ 2.1
►2017
+ 1.5
+ 1.1
+ 0.4
►2018
+ 1.7
@70%
+ 1.6
- 0.5
Cumul.
+ 9.2
- 0.9
- 6.0
+ 6.6
+ 6.9
- 0.3

28. Structure and content of "Annex 2“ report (…from SRQ to CSI)
Doc. A6465/19/03
Structure and content of "Annex 2“ report (…from SRQ to CSI)
PY published on dedicated section [PY ]
2018 = 5th such report under Staff Regs as amended Oct.2013
Similar transparency content to last year’s report
Annex 2c (34p)
Summary tables with information for EU28
Annex 2a (107p)
Detailed tables for 14 countries (BE to LV)
Annex 2b (118p)
Detailed tables for 14 countries (LT to UK)

29. Disclaimers – Reminder
1) Aim of MS pay information in Annex 2 report:
Compiled under specific conditions
Calculation of indicator that measures PAY EVOLUTION of national civil servants…
… not the comparison of national PAY LEVELS
2) Article 65 methodology is basis for calculations:
Outcome of pay evolution may therefore differ from other calculations at national level. 29

30. Practical lessons from this exercise30

31. Content of this part of presentation
Changes to workflow for compiling A65 data
Punctuality of transmission; validation process
Use of eDAMIS for SRQ transmission
Steps and grades
Sample coverage + ESA2010
Coverage of categories AD/AST/SC + ratios
Overview of lessons and remarks
Organisation of 2019 data transmission

32. New in 2018: changes to workflow
Approved at WG 2018 meeting, immediately applied
7 countries concerned: BE, DE, ES, FR, IT, LU, NL
Main reason: both ISRP and ESTAT need identical data for these countries
Big advantages:
- lower response burden for the country
- more rapid validation
Effective, efficient and economic

33. Deadlines for transmission:
Group 1: 7 countries  deadline
Group 2: other 21 countries (including sample country UK)  deadline (= no change)
Remark: SRQ same for both data collections

34. Punctual transmission – Group 1
31st May target date achieved for 6 out of 7 countries
LU sent the complete data file later

35. Punctual transmission – Group 2
31st July target date for SRQ submission was largely achieved…
…except for 5 countries (i.e. EI (new delegate), LV (change in data provider), SK, FI (long-term leave), UK (request extension delay)
…in 2017: EE, SK
Data was received for EL (did not supply in 2017)
No data at all for MT (change in data provider) and RO (nor in previous years)  other solutions found

36. Use of eDAMIS by national delegates
eDAMIS is the approved tool for the SRQ transmission to Eurostat
Decrease in number of countries which used eDamis for the 2018 annual exercise…
… IE, LU and UK transmitted by
(for comparison: 2017 not used by LU, 2016: no use for 4)
Valid reason for non-use: change in delegate (delay in permission)

37. Validation process
By 15th October 2018 calculations explicitly validated for all countries, except for 6 MS:
…DK22.10, HR22.10, IT22.10, CY16.10, LU17.10, SK11.10
….2017: late validation for 5xMS (FR5.10,IT4.10,MT3.10,AT2.10,UK11.10)
No data to validate for MT  ESTAT calculations using 2017 REM file
No calculation possible for HR, though method agreed  ESTAT calculations based on available data
No data to validate for RO  forecast SI used (2018 visit)
 Still allowed Eurostat report to be launched in time 37

38. Exceptional validation work 2018 for…
DE – late retrospective adjustment (legal process)
IE (no SRQ) – constructed by ESTAT
FR – sample reform
HR (partial SRQ)
MT (no SRQ) – constructed by ESTAT
RO (partial SRQ) – deductions by ESTAT
SK – sample reform
UK (SRQ content) – constructed by ESTAT

39. Supplied data – steps and grades
No changes:
Remuneration data supplied for upper/median/lower steps in grade, for 21 countries
For remaining 4 countries, the non-supply is linked to specific national circumstances:
No data for upper and lower steps for DK and SE
No data for median step in grade for IT and LU

40. Sample coverage (of population)
Sample for which data supplied represents 100% of central government population, except for :
Threshold of 75% coverage should normally be applied (see SRQ guidelines). %
=100
18 countries
90-100
5: CZ, CY, LV, HU, PT
75-90
1: ES (88.6%)
50-75
2: HR (35.9%), UK (53.7%)
< 50
2: SK (21.3%), FI (10.4%)

41. ESA 2010 staff data requested
Since SRQ 2014
SRQ Guidelines: "permanent statutory staff of the central government (sub-sector S.1311 of the ESA European System of Accounts)".
Table 1. Staff
Central government staff broken down by category and by grade
Reference period …………………………………………………………………….
Category
Grade
Sample
Reference population **
ESA central govt. +
[1]
[2]
[3]
[4]
[5]
AD *
AD-total
AST *
AST-total
SC *
SC-total
Total

42. Is ESA 2010 staff data received?
NB. voluntary transmission variable per ESA2010, but mandatory requirement per Staff Regulations Annex XI
 This year 13 Member States provided the figure:
BG, CZ, EE, ES, CY, LV, LT, HU, AT, PT, SI, SK, UK
 Newcomers are EE and ES
 Not supplied by 15 countries:
BE, DK, DE, IE, EL, FR, HR, IT, LU, MT, NL, PL, RO, FI, SE
The time-limited derogations for ESA 2010
will soon come to an end!

43. Coverage of categories AD/AST/SC
Equivalent national civil servants for all categories found in most Member States, except:
 No changes for 2018
Changes in previous years:
>2017: EE - split between AD and AST, no SC
>2017: UK - 1st time all categories provided >2016: LU - no longer SC >2014: ES – introduced SC figures
No AD ..
No AST PL
No SC
BE, BG, DK, EE, EL, FR, LT, LU, AT, FI

44. Ratio AD:AST:SC MS July 2018 BE 43 : 57 : - DE 48 : 42 : 10 ES
43 : 57 : - DE
48 : 42 : 10 ES
44 : 34 : 22 FR
17 : 83 : - IT
31 : 62 : 7 LU
45 : 55 : - NL
51 : 46 : 3 AT
19 : 81 : - PL
89 : - : 11 SE
83 : 12 : 5 UK
11 : 24 : 65
July 2017
AD AST SC
45 : 55 : -
48 : 42 : 10
44 : 34 : 22
36 : 64 : -
31 : 62 : 7
44 : 56 : -
52 : 46 : 2
19 : 81 : -
89 : - : 11
82 : 13 : 5
11 : 24 : 65
July 2016
AD AST SC
46 : 54 : -
48 : 41 : 11
43 : 35 : 22
33 : 67 : -
31 : 62 : 7
47 : 53 : -
50 : 47 : 3
18 : 82 : -
88 : - : 12
82 : 13 : 5
6 : 94 : -
July 2015
AD AST SC
46 : 54 : -
47 : 41 : 12
43 : 35 : 22
33 : 67 : -
31 : 62 : 7
41 : 52 : 7
48 : 49 : 3
18 : 82 : -
86 : - : 14
81 : 14 : 5
7 : 93 : - 44

45. 2018 exercise: lessons and remarks
1/4
No change to core sample (or whole-EU)
No change to A65 methodology
Reduction in Eurostat resources reduced capacity to develop descriptive manuals 45

46. 2018 exercise: Lessons and remarks 2/4
Result of closer collaboration with ISRP: split between transmission time limits of data sets:
31st May transmission date mainly respected for 7 countries
31st July transmission date mainly respected for the other countries
This closer cooperation with ISRP worked well
 15 October validation target date mainly reached
 Still no 100% transmission via eDamis
 Incomplete datasets for HR, MT, RO

47. 2018 exercise: Lessons and remarks 3/4
Staff numbers (=Table 1) were mainly updated with most recent figures
However, column 'ESA 2010' staff total in CPA (= Table 1) was still poorly completed ... therefore, Control Indicator "Compensation of Employees" is less accurate
Sample coverage threshold 75% mainly respected
Remuneration figures (=Table 2) were completed according to bilateral agreements (where applicable)
Components of salary (=Table 3) were mainly filled
Example calculation (=Table 4) were mainly filled
Working time (=Table 5) was mainly updated
References to legislative texts (=Table 6) could be better filled – even in national language 47

48. 2018 exercise: Lessons and remarks 4/4
Eurostat Annual Report transmitted within deadline
Annex 2 Report published as quickly as possible thereafter
 Control Indicator "Labour Cost Index" 
still not available for France
 Still some large differences between forecast SI
(supplied in January) and actual SI (supplied in July) 48

49. Organisation of 2019 data transmission
Forecast for all countries – via (=closed)
Transmission of SRQ for the group of 7 sample countries – via eDamis (Art65_final1_a)  deadline
Transmission of SRQ for other countries - via eDamis (Art65_final2_a)  deadline

50. Thank you for your attention!

51. Links to other presentations in A6465WG agenda
Agenda point 5 - A64 content
Agenda point 15.1 – dissemination
Agenda point 18 – manuals and assessments
Agenda point 7 - international collaboration
Agenda point 22 - documents for public 51