FC 92/8

Finance Committee

Ninety-second Session

Rome, 3 - 7 May 1999

Changes in Salary Scales and Allowances

Table of Contents

I. Professional and Higher categories


1. The following levels for the Rome post adjustment classification were announced by the International Civil Service Commission (ICSC) from February 1998 to February 1999. Changes in the multiplier were for the most part due to currency fluctuation. The multipliers applied, however, include also the effect of a modification to the post adjustment formula (new updating procedure of the housing component of the post adjustment index), which resulted in a decrease of the cost-of-living index in January 1998.


Cost-of-living Post Adjustment
(Applying 4-month waiting period)
Month Index 1/ Month Lire/Dollar Exchange Rate Index Multiplier
Oct.1997 102.1 Feb. 1998 1780 121.5 21.5
Nov.1997 102.3 Mar. 1998 1780 117.8 17.8
Dec.1997 102.3 Apr. 1998 1800 116.7 16.7
Jan.1998 101.5 May 1998 1775 118.1 18.1
Feb.1998 101.5 June 1998 1740 120.2 20.2
Mar.1998 101.5 July 1998 1770 118.4 18.4
Apr.1998 101.6 Aug. 1998 1745 121.5 21.5
May 1998 101.8 Sep. 1998 1785 117.6 17.6
June1998 101.8 Oct. 1998 1665 125.0 25.0
July1998 101.8 Nov. 1998 1635 127.1 27.1
Aug.1998 101.9 Dec. 1998 1685 123.7 23.7
Sep.1998 101.9 Jan. 19992/ 1659.54 125.4 25.4
Oct.1998 102.1 Feb. 1999 1698.11 122.9 22.9

1/ Index of cost-of-living for international officials in Rome using a constant rate of exchange. Please note that the index has been re-based effective 1 November 1995, date of the last cost-of-living survey.

2/ Effective 1 January 1999, due to the introduction of the Euro, the rate of exchange of the Lira versus the US dollars is expressed with two decimal points.

2. Based on Table 1, the following graph shows the variations in net salary, at P-4, step VI, due to the monthly fluctuations of the Italian lira versus the US dollar.

Undisplayed Graphic

3. The corresponding monthly salaries in Italian lire and the effect of the local inflation on net purchasing power are shown in the following graph.

Undisplayed Graphic
4. On the basis of a decision taken by the General Assembly in its resolution 53/209 of the Fifty-third session (1998), effective 1 March 1999, a revised scale of gross and net salaries will be implemented. The new scale reflects an increase of 2.48 per cent over the current scale (March 1998) and result from a onsolidation of 2.48 per cent of multiplier points of post adjustment on a no-loss, no-gain basis. There will consequentially be an adjustment in the post adjustment index which will be promulgated in March 1999. The new scale also take into account revised staff assessment rates.

5. Since separation payment and the mobility and hardship allowance are based on the base/floor salary scale, the amounts of these payments will also be increased by the same percentage (2.48 per cent) as of 1 March 1999.

II. General Service Category


6. In line with the procedures for interim adjustments established by the ICSC and approved by the Council 1/, an across-the-board 3.39 per cent net increase in salaries of the General Service staff came into effect 1 November 1998. This net increase also reflects the changes in the local fiscal legislation.

7. The annual pensionable remuneration was revised by the same percentage increase applied to the net salaries (the 1 to 1 interim adjustment procedure) and with effect from the same date.

8. In accordance with the current procedure, the annual net amount of the children's allowance was revised from Lire 2,086,000 to Lire 1,797,000. As this amount is lower than that in effect from 1 November 1997, staff members on board prior to 1 November 1998 and already in receipt of this allowance will maintain the higher amount until such time as future revisions produce a children'allowance equal to or higher than that in effect on 1 November 1997.

9. The annual net amount of the spouse allowance was revised from Lire 1,188,000 to Lire 1,208,000.

1/ CL 82/REP, para. 186.187;
CL 86/REP, para. 160 (b).