37 C

37 C/36 2 September 2013 Original: English

Item 12.2 of the provisional agenda

STAFF SALARIES, ALLOWANCES AND BENEFITS

OUTLINE

Source: 36 C/Resolution 95.

Background: 36 C/Resolution 95 authorizes the Director-General to apply to UNESCO staff measures affecting the salaries, allowances and other benefits that may be adopted either by the United Nations General Assembly or, by virtue of the authority conferred upon it, by the International Civil Service Commission (ICSC).

Purpose: This document informs the General Conference of decisions taken by the Director-General since its 36th 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 36 C/5.

Decision required: paragraph 29.

1. 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 36 C/Resolution 95 (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 ICSC and on measures which she has applied following resolutions adopted by the General Assembly relating to the United Nations common system, or by the ICSC. Following submission of ICSC reports1 to its 190th and 191st sessions, the Executive Board invited the Director-General to “continue to ensure UNESCO’s participation in the work of 1 In 190 EX/5 (Part III) and 191 EX/5 (Part V).

37th Session, Paris, 2013

37 C/36 – page 2

the International Civil Service Commission and to take into account its report”. 2 At its 191st session, the Board invited the Director-General to “continue to ensure UNESCO’s participation in the work of the International Civil Service Commission (ICSC), while remaining mindful of the associated financial implications that may arise from ICSC recommendations or decisions”. 3

UNESCO and the ICSC

3. 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”.4

4. The International Civil Service Commission (ICSC) was established in 1974 by the United Nations General Assembly5 “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 6 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 statutes, 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

7. At its 75th session in summer 2012, ICSC decided to undertake a comprehensive review of the compensation package of staff in the Professional and higher categories. The General Assembly, while noting the ICSC decision, requested it to bear in mind the financial situation of United Nations agencies when undertaking its review, and their capacity to attract a competitive workforce. It also requested ICSC to report back to it on the progress, preliminary findings and administrative aspects of the review in the last quarters of 2013 and in 2014. The final conclusions and recommendations of the ICSC on the comprehensive review are to be reported to the General Assembly at its 70th session, by the end of 2015. The intervening years will therefore be particularly important for United Nations agencies as the new compensation package for their Professional staff is shaped; and provides an important opportunity for all of the key stakeholders to contribute to this process, through effective dialogue and participation in the work of the United Nations General Assembly and, for United Nations agencies, through active participation in the work of ICSC.

2 190 EX/Decision 55 Part III (A) and 191 EX/Decision 4 (Part V). 3 190 EX/Decision 55 Part III (A) and 191 EX/Decision 4 (Part V). 4 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, p.175). 5 See resolution 3357 (XXIX) of 18 December 1974 of the United Nations General Assembly. 6 97 EX/Decision 8.1.3 and 17 C/Resolution 23.2.

37 C/36 – page 3

Measures implemented in 2012/2013

8. The measures implemented in UNESCO in 2012/2013, and incorporated into the relevant provisions of the Staff Rules and/or Human Resource Manual, are reproduced below.

Measures applicable to Professional and higher category and General Service category

Mandatory age of separation

9. The General Assembly endorsed, at its 67th session, ICSC’s decision to support the recommendation of the United Nations Joint Staff Pension Board to raise the mandatory age of separation to age 65 years for all new staff of member organizations of the United Nations Pension Fund, effective no later than 1 January 2014.

10. This decision will require an amendment to UNESCO’s Staff Regulation 9.5; and a proposal has been submitted to the General Conference in document 37 C/35 (Staff Regulations and Staff Rules).

Contractual arrangements: phasing out of appointments of limited duration

11. ICSC requested all United Nations organizations to phase out Appointments of Limited Duration (ALD) by the end of 2010, although UNESCO was granted an extension until 31 December 2012. All ALD contracts in UNESCO have now been phased out.

Danger pay

12. ICSC decided7 to discontinue hazard pay, with effect 1 April 2012, and to introduce danger pay on the basis of newly established criteria. As a result, fewer duty stations qualify for danger pay. The level of danger pay for international Professional staff members has been set at $1,600 per month, while the level of danger pay for GS staff was set at 25%, then, from 1 January 2013, at 30% of the net midpoint of the GS salary scale. ICSC will, in future, carry out periodic reviews of the level of danger pay.

Conditions of service of staff in the Professional category and above

Changes in salaries and allowances

13. 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). Further details are set out in Annex II. In accordance with recommendations and decisions of the General Assembly 8 and ICSC, 9 the Director-General applied the following measures to Professional and higher category staff:

Net/base salary

14. The net base/floor salary scale increased on 1 January 2012 by 0,13%, to align the salaries of United Nations Professional and higher category staff with pay levels of comparable staff in the United States federal civil service. Although the United States federal civil service experienced a salary freeze in 2011, there had been a small reduction in direct taxes in the United States of America during the year. This increase was 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-

7 ICSC Annual Report for 2011 (A/66/30) and A/Res/66/235. 8 GA/Resolutions A/Res/66/235 A and B (2011) and A/Res/67/257 (2012). 9 ICSC Annual Reports for 2011 (A/66/30) and 2012 (A/67/30).

37 C/36 – page 4

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.

15. In 2012, ICSC recommended an increase of 0.12% in the net base/floor scale effective from 1 January 2013, reflecting the continuing salary freeze in the United States federal civil service during 2012 and further tax-related changes. The General Assembly took note of these tax related changes but did not act upon ICSC’s recommendation to adjust the base/floor salary scale; and the net base/floor salary scale for Professional and higher category staff has, therefore, remained at its 1 January 2012 level (attached as Annex III).

Post adjustment

Level of post adjustment in Paris

16. In accordance with the approved methodology, ICSC carries out an annual review of post adjustment to check that international Professional salaries in duty stations away from New York (i.e. the base of the salary system) have the same purchasing power as the salaries received by equivalent staff in New York; and to make adjustments, where necessary.

17. ICSC’s reviews in April 2012 and April 2013 indicated that staff in Paris required an increase in post adjustment of 5.4% and 2% respectively to re-establish purchasing power parity with equivalent staff in New York, increases largely attributed to the significant fluctuations in the euro against the United States dollar

Level of Post Adjustment in New York

18. In response to a request from the General Assembly, ICSC reviewed the post adjustment methodology during 2012. It reported that the methodology had been operating as intended, but decided to postpone implementation of the post adjustment increase for New York due in August 2012 pending a decision by the General Assembly. In its resolution, 10 the General Assembly decided that normal operation of the post adjustment system would resume on 1 February 2013 and the updated post adjustment multiplier for New York was implemented from that date. This resulted in an increase of about 2% in the pensionable remuneration scale for Professional staff, as revisions to the New York post adjustment multiplier affect the pensionable remuneration scale. The revised pensionable remuneration scale is set out in Annex III.

Education grant

19. Further to the review undertaken in 2012 on the basis of ICSC’s approved methodology, the following ICSC recommendations relating to the education grant have been implemented:

(a) On the basis of the movement of costs and fees, maximum admissible expenses and maximum grants were increased in a number of countries;11

(b) The flat rates for boarding, payable in respect of children studying away from the country of the staff member’s duty station, increased in all education grant zones except Switzerland;

(c) New special measures were introduced for Thailand, the American Cooperative School in Tunis and the American International School of Johannesburg; while special measures for China, Hungary, Indonesia and the Russian Federation, as well as for the eight specific schools in France were maintained; the special measure for Romania was discontinued.

10 A/Res/67//257. 11 Austria, Belgium, Denmark, France, Germany, Italy, the Netherlands, Spain, Switzerland, the United Kingdom, the

United States and the United States dollar area outside the United States.

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The amounts payable as of the academic year in progress as at 1 January 2013 are in Annex IV.

20. The eligibility criteria for the education grant entitlement were amended further to a decision adopted by the General Assembly at its 66th session.12 Education is deemed primary if the child was 5 years of age or more at the start of the school year or if the child reached the age of 5 within three months of the start of the school year. ICSC recommended a change in the eligibility requirements in the exceptional case where the laws at specific locations mandate an earlier start of formal education.13 This amendment came into effect in the academic year in progress on 1 January 2012.

Mobility, hardship, non-removal and additional hardship allowance

21. ICSC reviews the amounts of mobility, hardship, non-removal and additional hardship allowance every three years. The last review took place in 2011 and resulted in an increase of 2.5% in the flat amount payment for each of these four elements as of 1 January 201214. The amounts are set out in Annex V.

22. ICSC maintained the current five-year ceiling on the payment of mobility allowances in the same duty station, but decided to allow, in the exceptional case of staff who remained in the same duty station at the explicit request of an Organization or for compelling humanitarian reasons, the payment of the full mobility allowance for a maximum period of one additional year, that is, for an overall period of six years. This measure was implemented as from 1 January 2012.

Rest and recuperation

23. ICSC agreed on a revised framework for granting Rest and Recuperation (R&R) breaks and the corresponding frequency of travel set out in Annex VI (a). It became effective and was introduced in UNESCO on 1st January 2012. The General Assembly 15 approved ICSC’s recommendation that the period of authorized absence on R&R breaks would be five consecutive calendar days, plus approved travel time. Payment of DSA on R&R breaks was discontinued.

Security evacuation allowances

24. The Security Evacuation Allowance (SEA) is payable during the first six months of an evacuation, the Extended Monthly Security Evacuation Allowance (EMSEA) becoming payable if the evacuation continues beyond six months. ICSC decided to approve the definition and purpose of a security evacuation allowance, namely “to assist in offsetting direct added expenses of staff and their eligible family members who are evacuated from their official duty stations” (see Annex VI (b)). ICSC will review the SEA and EMSEA allowances every three years.

Conditions of service of staff in the General Service category

25. The Director-General applied the following measures in Headquarters to staff members in the General Service category:

Net salary

(a) Net salary scale increase of 2,05% on 1st October 2011, in line with ICSC’s approved methodology, with resulting increases in pensionable pay and language allowances. The salary scales payable in Headquarters effective 1st October 2011 are set out in Annex VII (b) and (c).

12 A/Res/66/235 (2011). 13 This is the case, for instance, for public schools in the Geneva canton of Switzerland. 14 ICSC Annual Report for 2011 (A/66/30) and A/Res/66/235. 15 A/Res/66/235

37 C/36 – page 6

Salary scale and revised allowance

(b) Further to a comprehensive salary survey conducted in Paris by the ICSC secretariat in co-operation with representatives of UNESCO Administration and Staff Associations, based on the methodology approved by the UN General Assembly at the end of 2011, the Director-General, implemented the following ICSC recommendations:

(i) The new salary scale, set out in Annex VII (a), 2.19% lower than the previous one, with an effective date of 1st May 2013, applying to GS staff recruited on or after 1 May 2013;

(ii) Staff on board prior to 1 May 2013 continue to be paid against the existing salary scales set out in Annexes VII (b) and (c); they will remain in force until the 2.19% “gap” between the new and existing scales has been eliminated through application of the interim adjustment methodology to the new scale;

(iii) Revised child and spouse allowances were implemented, effective 1 May 2013, payable to all eligible staff irrespective of when they joined UNESCO (see Annex VIII (a));

(iv) Revised language allowances payable for staff members recruited on or after 1st May were also implemented (see Annex VIII (b)).

26. 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.

Other decisions implemented by the Director-General: Statutory travel – lump sum option

27. Under the current arrangements for payment of statutory travel entitlements, staff members may opt for themselves, and any eligible family members, either for payment by UNESCO of the actual travel expenses or a lump sum. The actual expenses covered by UNESCO include travel tickets, terminal expenses and transportation of excess baggage or unaccompanied shipment. All journeys shall be in economy class. The lump sum is all inclusive; no additional payments are made for, for example, terminal expenses or excess baggage. The Director-General, in her Ivory Note/12/11 (9 July 2012) reduced the value of the lump-sum option from 60% to 50% of the full economy airfare applicable to the most direct route between the authorized points of departure and destination.

Financial and administrative implications

28. The measures reported in this document were anticipated in document 36 C/5. They were implemented using existing finance/payroll systems and fall under the staff costs budget.

Proposed resolution

29. 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,

1. Having examined the report of the Director-General on staff salaries, allowances and benefits (37 C/36),

2. Having taken into consideration recommendations and decisions of the General Assembly and the International Civil Service Commission covering the salaries,

37 C/36 – page 7

allowances and other benefits of staff of organizations who participate in the United Nations common system of salaries, allowances and conditions of service,

3. 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,

4. 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 37 C/36;

5. 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;

6. 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.

37 C/36 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 United Nations common system compensation package approved by the United Nations General Assembly on the basis of recommendations from the ICSC. The three 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) The broad principles for the determination of the conditions of service of the staff;

(b) The scales of salaries and post adjustments for staff in the Professional and higher categories;

(c) Allowances and benefits of staff which are determined by the General Assembly; (d) Staff assessment.

Article 11

The Commission shall establish:

(a) The methods by which the principles for determining conditions of service should be applied;

(b) Rates of allowances and benefits, other than pensions, those referred to in article 109 (c), the conditions of entitlements thereto and standards of travel;

(c) 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 Headquarters duty stations.

2. The attached table (Attachment 2) shows the various benefits and entitlements provided under the United Nations 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.

37 C/36 Annex I – page 2

Attachment 1

Decisions/Resolutions related to UNESCO’s relationship with decisions and recommendations of the General Assembly and ICSC

1. 97 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 36 C/Res.95 (November 2011)

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 (36 C/39),

Having taken into consideration the recommendations and decisions of the United Nations General Assembly and the International Civil Service Commission relating to salaries, allowances and other benefits of the 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, recommend to the United Nations General Assembly measures affecting staff salaries, allowances and benefits,

1. Takes note of 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, as set out in document 36 C/39;

2. Authorizes the Director-General to continue to apply to the staff of UNESCO measures of this kind which 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.

37 C/36 Annex I – page 3

Attachment 2

BENEFITS AND ENTITLEMENTS PROVIDED UNDER THE UNITED NATIONS COMMON SYSTEM

Staff benefit / entitlement (under UN common system) RESPONSIBILITY

Benefit or entitlement

Staff category eligible

ICSC General Assembly

UNESCO Governing

Bodies

UNESCO Director-General

Salary scales Prof and GS Recommends salary scale

Approves (P staff)

Must promulgate

Must give effect to scales recommended and approved by ICSC/GA.

Post adjustment Prof Determines level at each duty station

- - Must give effect to PA as issued by ICSC

Rental subsidy Prof Determines most conditions and amount

- - Must apply ICSC conditions. Authority relates to defining reasonable accommodation and establishing maximum reasonable rent for Paris

Language allowance

GS Determines conditions and amount

- - Must apply ICSC rates of allowance. UNESCO has no language allowance for P staff

Overtime Prof and GS Determines conditions

- - Must follow ICSC. Authority to determine how to be compensated (eg compensatory time off).

Special post allowance

(for staff assuming higher level

duties)

Prof and GS Determines conditions and amount

- Must follow ICSC

Dependency benefits

Prof and GS Determines conditions and amount

Approves for Prof

- Must follow GA and ICSC

Education grant Prof and GS (international)

Determines conditions and amount

Approves - Must follow GA and ICSC

Pensions Prof and GS Establishes conditions and entitlement specifically linked to UN pension fund.

Approves - Must follow GA and ICSC

ENTITLEMENTS RELATED TRAVEL, RELOCATION AND STAFF MOBILITY DSA Prof and GS Provides guidance

on ICSC rates - - Norm is to follow ICSC

rates (but can establish ad-hoc rates and negotiate rates to reduce hotel costs).

Mobility/Hardship Prof and GS (international)

Determines conditions and amount

Approves amounts

Must follow GA and ICSC

Assignment grant Prof and GS (international)

Determines conditions and amount

- - Must follow ICSC

Removal/Shipment Prof and GS (international)

Determines most conditions and weight and volume limitations

- - Must follow ICSC rules. Authority to determine practical implementation (eg lump sum in lieu of cost of organised shipment).

37 C/36 Annex I – page 4

Staff benefit / entitlement (under UN common system) RESPONSIBILITY

Benefit or entitlement

Staff category eligible

ICSC General Assembly

UNESCO Governing

Bodies

UNESCO Director-General

LEAVE

Annual leave Prof and GS Determines conditions

- - Must follow ICSC.

Home leave Prof and GS (international)

Determines most conditions

Approves - Must follow GA and ICSC. Authority regarding lump sum payment

Sick leave Prof and GS Determines conditions

- - Must follow ICSC. Authority to determine how entitlement is given.

Maternity, paternity and adoption leave

Prof and GS Determines conditions

- - Must follow ICSC.

Special leave Prof and GS Determines conditions

- - Must follow ICSC. Authority to determine how entitlement is given, including whether with or without pay. .

Official holidays Prof and GS Determines number away from HQ duty stations

- - Establishes days to be observed in France (Staff Rule)

SEPARATION PAYMENTS

Commutation of annual leave

Prof and GS Determines conditions and maximum days that can be paid

- - Must follow ICSC but can determiner number of days within maximum set by ICSC

Repatriation grant Prof Determines conditions

Approves - Must follow GA and ICSC

Termination indemnity

Prof and GS Determines conditions

Approves - Must follow GA and ICSC

37 C/36 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.

ICSC reported that the margin for the period 1 January 2012 to 31 December 2012 was 117.7, with a five-year (2008-2012) average of 114.9.

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

37 C/36 Annex II – page 2

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.

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.

37 C/36 Annex II – page 3

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 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 (for example, changes in education grant ceilings and mobility and hardship allowances) 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.

37 C/36 Annex III

ANNEX III

SALARY SCALE FOR STAFF IN PROFESSIONAL CATEGORY AND ABOVE, SHOWING ANNUAL SALARIES AND NET EQUIVALENTS AFTER DEDUCTION OF STAFF ASSESSMENT

(in US dollars – effective from 1 January 2012)

In addition, staff in Professional category and above receive a post adjustment amount that varies according to the duty station.

37 C/36 Annex IV

ANNEX IV

EDUCATION GRANT ENTITLEMENTS

Effective from scholastic year in progress 1 January 2013

Currency

Maximum admissible

expenses and maximum grant

for disabled children

Maximum education grant

Normal flat rate when boarding not provideda

Additional flat rate for boarding (at designated duty stations)

Maximum grant for staff at

designated duty stationsa

Euro Austria 18,240 13,680 3,882 5,824 19,504 Belgium 16,014 12,011 3,647 5,470 17,481 Franceb 11,497 8,623 3,127 4,691 13,314 Germany 20,130 15,098 4,322 6,484 21,582 Ireland 17,045 12,784 3,147 4,721 17,505 Italy 21,601 16,201 3,223 4,836 21,037 Monaco 11,497 8,623 3,127 4,691 13,314 Netherlands 18,037 13,528 3,993 5,990 19,518 Spain 17,153 12,864 3,198 4,797 17,661 Danish krone 122,525 91,894 28,089 42,134 134,028 Japanese yen 2,324,131 1,743,098 609,526 914,290 2,657,388 Swedish krona 157,950 118,462 26,219 39,328 157,790 Swiss franc 32,932 24,699 5,540 8,310 33,009 Pound sterling 25,864 19,398 3,821 5,731 25,129 United States dollar (in the United States of America)c 45,586 34,190 6,265 9,399 43,589 United States dollar (outside the United States of America) 21,428 16,071 3,823 5,735 21,806

a Applies only in respect of children at the primary and secondary levels of education - Staff Rule 103.12 (k). b Except for the following schools, where the US dollars in the United States levels will be applied: · American School of Paris. · American University of Paris. · British School of Paris. · European Management School of Lyon. · International School of Paris. · Marymount School of Paris. · The Ecole Active Bilingue Victor Hugo (for English curriculum only). · Ecole Active Bilingue Jeanine Manuel (for English curriculum only). c Also applies, as a special measure, for China, Hungary, Indonesia, the Russian Federation and Thailand; the special measure for Romania is discontinued. In addition, special measures have been introduced for the American Cooperative School in Tunis and the American International School of Johannesburg, South Africa.

37 C/36 Annex V

ANNEX V

(annual amounts in USD)

P-1 to P-3 P-1 to P-3

Dependency Status Single Status

Number of assignments Number of assignments

Duty statio 1 2-3 4-5-6 7+ 1 2-3 4-5-6 7+category

H - - 2 700 3 370 - - 2 020 2 520A - 7 130 9 640 13 010 - 5 350 7 240 9 760B - 7 130 9 640 13 010 - 5 350 7 240 9 760C - 7 130 9 640 13 010 - 5 350 7 240 9 760D - 7 130 9 640 13 010 - 5 350 7 240 9 760E - 7 130 9 640 13 010 - 5 350 7 240 9 760

P-4 to P-5 P-4 to P-5

Dependency Status Single Status

Number of assignments Number of assignments

Duty statio 1 2-3 4-5-6 7+ 1 2-3 4-5-6 7+category

H - - 3 060 3 830 - - 2 310 2 870A - 8 200 11 070 14 940 - 6 160 8 310 11 210B - 8 200 11 070 14 940 - 6 160 8 310 11 210C - 8 200 11 070 14 940 - 6 160 8 310 11 210D - 8 200 11 070 14 940 - 6 160 8 310 11 210E - 8 200 11 070 14 940 - 6 160 8 310 11 210

D-1 and above D-1 and above

Dependency Status Single Status

Number of assignments Number of assignments

Duty statio 1 2-3 4-5-6 7+ 1 2-3 4-5-6 7+category

H - - 3 440 4 310 - - 2 580 3 230A - 9 270 12 520 16 900 - 6 950 9 390 12 670B - 9 270 12 520 16 900 - 6 950 9 390 12 670C - 9 270 12 520 16 900 - 6 950 9 390 12 670D - 9 270 12 520 16 900 - 6 950 9 390 12 670E - 9 270 12 520 16 900 - 6 950 9 390 12 670

Mobility Allowance: Flat amounts

Effective from 1 January 2012

37 C/36 Annex V – page 2

P-1 to P-3 P-4 and P-5 D-1 and aboveDuty station Dependency Single Dependency Single Dependency Single

category status status status status status status

H - - - - - -A - - - - - -B 5 810 4 360 6 970 5 230 8 140 6 100C 10 470 7 840 12 780 9 590 15 110 11 340D 13 950 10 470 16 280 12 210 18 590 13 950E 17 440 13 080 20 920 15 690 23 250 17 440

P-1 to P-3 P-4 and P-5 D-1 and aboveDuty station Dependency Single Dependency Single Dependency Single

category status status status status status status

H 2 150 1 620 2 700 2 020 3 230 2 420A 2 150 1 620 2 700 2 020 3 230 2 420B 2 150 1 620 2 700 2 020 3 230 2 420C 2 150 1 620 2 700 2 020 3 230 2 420D 2 150 1 620 2 700 2 020 3 230 2 420E 2 150 1 620 2 700 2 020 3 230 2 420

With dependantSingle

20 920

(annual amounts in USD)

Hardship Allowance: Flat amounts

Effective 1 January 2012

Non-removal Allowance: Flat amounts

Effective 1 January 2012

(annual amounts in USD)

7 84517 4406 540

Additional Hardship Allowance for service in non-family duty stations

Effective 1 January 2012

Group 1 (P-1 to P-3) Group 2 (P-4 and P-5) Group 3 (D-1 and above)

23 2508 720

37 C/36 Annex VI

ANNEX VI

(a) FREQUENCY AND CYCLE OF THE REST AND RECUPERATION BREAKS

Frequency cycle

Conditions

4 weeks

Extreme emergency situations

• Where danger pay is authorized by the Chairman of ICSC

6 weeks

Exceptional and temporary situations in non-family/restricted duty stations

• Active conflict

• Natural disasters and other similar extreme situations;

8 weeks

Non-family/restricted duty stations

• All duty stations declared by the Department of Safety and Security as restricted for all eligible dependants for security reasons;

• All duty stations designated as non-family by the Chairman of ICSC

12 weeks

Duty stations with high levels of hardship

• Non-capital duty stations with a hardship classification of D or E;

• Exceptional cases of category E capital cities

(b) RATES AND CONDITIONS OF PAYMENT OF THE EVACUATION SECURITY ALLOWANCE

Up to 30 days 30 days to 6 months

Over 6 months

Staff member $200 per day $150 per day The additional hardship allowance becomes payable when evacuation continues beyond six months, and the duty station concerned has not been declared non-family.

Eligible family members

$100 per day $75 per day

A one-off lump sum shipment payment of $500 is also payable on evacuation.

37 C/36 Annex VII

ANNEX VII

ANNUAL SALARY SCALE FOR GENERAL SERVICE CATEGORY AT HEADQUARTERS

(a) Applicable to staff on board since 1 May 2013

37 C/36 Annex VII – page 2

(b) Applicable to staff on board as from 1 January but before 1 May 2013

(c) Applicable to staff on board on 31 December 1999

37 C/36 Annex VIII

ANNEX VIII

A. Child and spouse allowances applicable to GS staff

Revised child and spouse allowances were implemented with an effective date of 1 May 2013, payable to all eligible staff, irrespective of when they joined UNESCO:

• Dependent child €1,949 per year;

• First dependent child of staff member without a spouse €3,817 per year;

• Dependent spouse €2,443 per year

B. Language allowances applicable to GS staff

For staff members recruited on or after 1 May 2013:

• First language €1,830 per year

• Second language €915 per year

For staff on board before 1 May 2013:

• First language: €1,871 per year

• Second language: €935 per year

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