Introduction

The cost-variation adjustment percentage, referred to at CERN as the cost-variation index, is made up of the CERN Personnel budget cost-variation index, the Materials budget cost-variation index and the cost-variation index for debt repayments.

1. The Personnel Budget Cost-Variation Index

The formula for the calculation of the annual salary index is in line with the Resolution¹ on the conclusions of the five-yearly review 2000. The scale of basic salaries of Staff Members as determined at the five-yearly review of financial conditions shall be reviewed annually with the aid of the salary index, the composition and method of calculation of which are detailed below.

On the understanding that there is no legal obligation in this respect, the purpose of this index is to maintain the relationship between the Organization’s scale of basic salaries and the remuneration paid by the organizations used as a basis for comparison when this scale was last determined on conclusion of a five-yearly review.

1.1 Composition of the salary index²

The salary index shall consist of two components:

a) First Component

The Geneva cost-of-living movement for a twelve-month period from August of the year preceding the current year to August of the current year, namely the year preceding that in which the approved index enters into force, normally with effect from 1st January (data of the Statistical Office of the Canton of Geneva taking the index for the month of August in the year preceding the current year as base = 100).

b) Second Component

The average movements of the real net salaries of the Swiss Federal civil servants and of the civil servants of other ten Member States of the Organization (Austria, Belgium, France, Germany, Italy, the Netherlands, Poland, Spain, Sweden and the United Kingdom) for a twelve-month period from June of the year preceding the current year to June of the current year, namely the year preceding that in which the approved index enters into force, normally with effect from 1st January (data of the Statistical Office of the European Union - EUROSTAT - taking the index for the month of June in the year preceding the current year as base= 100).

1.2 Method of calculation of the salary index

The salary index shall be calculated on the basis of the data collected for each of the two components referred to in 1.1 above using the following formula³

1.3 Adjustment of the scale of basic salaries

The Council shall take a decision concerning the adjustment of the scale of basic salaries using as a guide the calculated salary index.

1.4 Adjustment of the amounts of the family and child allowances

The Council shall review the amounts of the family and child allowances annually. The Council shall take a decision concerning the adjustment of the amounts of the family and child allowances using as a guide the Geneva cost-of-living movement, as calculated in accordance with item 1.1 a) above, and any other data that may be relevant for an appropriate review of these allowances.

2. The Materials Budget Cost-Variation Index⁴

2.1 The Materials budget cost-variation index is made up of the following elements:

• the cost-variation index of goods and supplies, based on the index on Capital Goods, published by EUROSTAT - Luxembourg;
• the cost-variation index of Consumables, based on the index for Competitive Positions, published by the OECD - Paris;
• insurance & communications, energy, heating gas & water and industrial services, all based on the contractual changes in tariffs;
• subsistence payments for Unpaid Associates, based on the annual decisions for subsistence allowances for Unpaid Associates.

2.2 Exchange rates and percentage purchases

The following basic principles will be applied:

• the indices of each of the Member States in national currencies will be converted to Swiss francs;
• the proportions of the supply purchases from those countries which make up at least 90% of the expenditure for the supplies in all Member States will be used as weights.

2.3 The Cost-Variation Index for Debt Servicing

• Debt repayments for FIPOI⁵ are not indexed.