New compensation package for internationally recruited ... - PPT on Revised Com… · ICSC Comprehensive Review -Background • First major review since 1989, conducted over a 3-year

New compensation package for internationally recruited staff members

Office of Human Resources ManagementVersion as of 8 June 2016

This presentation reflects the statusof information as of June 2016 and may be subject to change.

Table of contents

ICSC Comprehensive Review:

• Background• Objectives• Process• Results

Changes:

• Salary structure including conversion table and mini scale for steps 14 and 15• Dependency allowances• Education grant & 7-bracket global sliding scale• Mobility incentive including new amounts• Hardship allowance and Non-family service allowance including new amounts• Accelerated home leave• Relocation elements, including non removal element• Other elements• List of elements not affected by the changes

Resources

ICSC dedicated website, scenarios, FAQs, calculator…etc.

ICSC Comprehensive Review - Background

• First major review since 1989, conducted over a 3-year period(2013-2015)

• All remuneration elements reviewed holistically in order tosafeguard the core values of the organizations of the UN commonsystem

• Bearing in mind the financial situation of the organizations and theircapacity to attract a competitive workforce

• Philosophy of compensation grounded in the principles of Article101 of the UN Charter and the Noblemaire principle

• Considering the effectiveness of common system benefits, work-lifebalance, performance and recognition programmes and thedevelopment of career opportunities

ICSC Comprehensive Review – Objectives

• Reduce the overall complexity and the perceived lack oftransparency of the current compensation package

• Reduce the high administrative and staff costs

• Design a new system which should be competitive, fair, equitable,transparent, simple in design, easy to administer and easilyunderstood by staff and other stakeholders

• Overall costs containment and sustainability

• Continued ability of the organizations of the UN common system toeffectively deliver their mandated activities

• Creation of a coherent compensation system: streamlined,transparent and cost-effective

ICSC Comprehensive Review – Process

• Extensive data gathering

• Global staff survey from all organizations of the UN common system

• Three different Working Groups composed of Commission members,representatives from the organizations and staff representatives

• Eight meetings of the three Working Groups:

� Remuneration structure including post adjustment� Competitiveness and sustainability� Performance recognition and related human resources issues

• Benchmarking against other organizations

• Review of best practices prevalent elsewhere

Results of the ICSC comprehensive review

• In the fall 2015, the ICSC presented its final recommendations for anew streamlined common system compensation package to theGeneral Assembly in its report A/70/30

• On 23 December 2015, the General Assembly approved the ICSCrecommendations on the new common system compensationpackage subject to the provisions contained in its resolution 70/244

• On 1 April 2016, the General Assembly approved the amendmentsto the staff regulations required for the changes mandated forimplementation as of 1 July 2016

• On 23 May 2016, the SG Note (A/70/896) on the actualimplementation timeline for the UN Secretariat was issued andsubmitted to the General Assembly for its consideration andapproval

Summary of changes

• Salary structure and recognition of dependents

• Step periodicity and accelerated step increments

• Education grant and Special education grant

• Mobility and hardship allowances / Non-family service allowance

• Relocation-related entitlements, including non-removal allowance

• Accelerated home leave

• Repatriation grant

• Transitional measures for a number of elements for currently servingstaff members to limit any negative impact

Actual implementation timeline

1 July 2016

• Accelerated home leave• Repatriation grant• Relocation-related entitlements• Hardship allowance & non-family service allowance (replacing the

additional hardship allowance)

1 November 2016

• Mobility incentive (replacing the mobility allowance)• Discontinuation of the non-removal allowance

1 September 2017

• Salary structure and recognition of dependents• Step periodicity and accelerated step increments

School year in progress as of 1 January 2018

• Education grant and Special education grant

Salary structure – Professional and above

• Unified salary structure with one rate of net pay without regard todependency status

• 13 steps at grades P-1 to D-1 and 10 steps at D-2 level

• Step increments granted annually up to step 7 and bienniallythereafter for grades P-1 to P-5 (no change to step periodicity at D-1 and D-2 levels)

• Staff will be mapped to appropriate step in new scale

• As a pay protection measure, salaries for staff that fall outside theunified scale will be maintained by ICSC (e.g. staff at step 14 and15)

• Accelerated step increments discontinued

Salary structure: conversion table (P and above)

Salary structure: mini scale for steps 14 and 15

Salary structure – Field Service category

• A new salary scale is under development and will be directlyderived from the new unified salary structure of the professional andhigher categories with one rate of net pay without regard todependency status

• Step increments will be granted in accordance with the periodicityof the new unified salary scale for the professional and highercategories

• Staff will be mapped to appropriate step in new scale thru aconversion table similar to that for the professional and highercategories

• Salaries for staff that fall outside the unified scale will be maintainedas necessary as a pay protection measure

Salary structure – FS conversion table

Proposed Proposed Proposed Proposed Proposed Proposed Proposed

Grade

Present

step

Present

D

Present

S Grade

Present

step

Present

D

Present

S Grade

Present

step

Present

D

Present

S Grade

Present

step

Present

D

Present

S Grade

Present

step

Present

D

Present

S Grade

Present

step

Present

D

Present

S Grade

Present

step

Present

D

Present

S

FS-1 1 1 2FS-2 1 1 2FS-3 1 1 1FS-4 1 1 1FS-5 1 1 1FS-6 1 1 1FS-7 1 1 1

FS-1 2 2 3FS-2 2 2 3FS-3 2 2 2FS-4 2 2 2FS-5 2 2 2FS-6 2 2 2FS-7 2 2 2

FS-1 3 3 4FS-2 3 3 4FS-3 3 3 3FS-4 3 3 3FS-5 3 3 3FS-6 3 3 3FS-7 3 3 3

FS-1 4 4 5FS-2 4 4 5FS-3 4 4 4FS-4 4 4 4FS-5 4 4 4FS-6 4 4 4FS-7 4 4 4

FS-1 5 5 6FS-2 5 5 5FS-3 5 5 5FS-4 5 5 5FS-5 5 5 5FS-6 5 5 5FS-7 5 5 5

FS-1 6 6 7FS-2 6 6 6FS-3 6 6 6FS-4 6 6 6FS-5 6 6 6FS-6 6 6 6FS-7 6 6 6

FS-1 7 7 8FS-2 7 7 7FS-3 7 7 7FS-4 7 7 7FS-5 7 7 7FS-6 7 7 7FS-7 7 7 7

FS-1 8 8 9FS-2 8 8 8FS-3 8 8 8FS-4 8 8 8FS-5 8 8 8FS-6 8 8 8FS-7 8 8 8

FS-1 9 9 10FS-2 9 9 9FS-3 9 9 9FS-4 9 9 9FS-5 9 9 9FS-6 9 9 9FS-7 9 9 9

FS-1 10 10 11FS-2 10 10 10FS-3 10 10 10FS-4 10 10 10FS-5 10 10 10FS-6 10 10 10FS-7 10 10 10

FS-2 11 11 11FS-3 11 11 11FS-4 11 11 11FS-5 11 11 11FS-6 11 11 11FS-7 11 11 11

FS-2 12 12 12FS-3 12 12 12FS-4 12 12 12FS-5 12 12 12FS-6 12 12 12FS-7 12 12 12

FS-3 13 13 13FS-4 13 13 13FS-5 13 13 13

FS-3 -a -a 13FS-4 14 -a -a

FS-3 -a -a 13FS-4 15 -a -a

Abbreviations: D, dependency status; S,

single status.a Salaries to be

maintained.

Dependency allowances

Effective upon implementation of the unified salary scale.

• Dependent spouse allowance equivalent to 6% of net base salaryplus post adjustment

• Single parent allowance equivalent to 6% of net base salary pluspost adjustment

• Transitional allowance for staff in receipt of dependent rate ofsalary in respect of a first dependent child equivalent to 6% of netbase salary plus post adjustment to be reduced by 1 percentagepoint each year until amount of allowance is equal to childallowance

Education grant

Effective for the school year in progress as of 1 Jan 2018

• Admissible expenses limited to tuition, tuition in the mother tongueand enrolment related fees

• Capital assessment fees covered outside the grant• Boarding assistance and EGT provided only for staff in A to E duty

stations (and in exceptional cases at H duty stations) whosechildren attend boarding school at the primary or secondary levels

• Reimbursement based on a 7-bracket global sliding scale• Payable up to completion of four years of post-secondary

education or first post-secondary degree, whichever is earlier,subject to upper age limit of 25

• Additional EGT discontinued• Current special education grant for disabled child maintained,

subject to a maximum equal to upper limit of the sliding scale plus$5000 lump-sum if boarding

Education grant: 7-bracket sliding scale

Claim amount bracket Reimbursement rate

(United States dollars) (Percentage)

0 -11 600 86

11 601 - 17 400 81

17401 - 23 200 76

23201 - 29 000 71

29001 - 34 800 66

34 801 - 40 600 61

40 601 and above 0

Repatriation Grant

Effective 1 July 2016

• Threshold of five years of expatriate service established as eligibilityrequirement

• Current staff members retain their eligibility to the current grantschedule up to the number of years of expatriate service accruedat the time of implementation of the revised scheme

Mobility incentive

Effective 1 November 2016

• New mobility incentive amounts

• Name of the Mobility allowance changed to “mobility incentive”

• Not paid at headquarters duty stations

• Differentiation in amounts based on grade and number of moves

• Amount increased by 25% on 4th assignment and 50% on 7th

assignment

• Staff currently in receipt of mobility allowance will continue toreceive the payment of such allowance for up to 5 years or untilthey move to a new duty station, whichever is earlier

Mobility incentive: new amounts

Assignment

number

Additional

amounts

Group 1 (P-1

to P-3)

Group 2 (P-4

and P-5)

Group 3 (D-1

and above )

2 to 3 None 6,500 8,125 9,750

4 to 6 25 per cent 8,125 10,156 12,188

7+ 50 per cent 9,750 12,188 14,625

Hardship allowances

Effective 1 July 2016

Hardship allowance

• Unified hardship rates regardless of dependency status, based ongrade brackets. New rates equal to current rates for staff with adependent.

Non-family service allowance

• Additional hardship allowance at non-family duty stations changedto “non-family service allowance”

• Amount of non-family service allowance is $19,800 for staff with adependent and $7,500 for staff without a dependent, irrespectiveof grade level

New amounts to be paid to all staff members including those currentlyin receipt of the hardship and additional hardship allowances

Hardship allowance – New amounts

Accelerated home leave

Effective 1 July 2016

• Discontinue accelerated home leave travel, except in D and E dutystations that fall outside the R&R framework

• The points accrued per month will change from 2 to 1 for staffmembers in all duty stations, except in D and E duty stations that falloutside the R&R framework

Relocation elements

Effective 1 July 2016

• Replace assignment grant with “settling-in grant”:• 30 days DSA for s/m and half rate of 30 days DSA for eligible family

members• Lump-sum of one month’s net base salary plus post adjustment,

irrespective of whether or not staff member had full removalentitlement.

• Second month lump-sum at A to E duty stations discontinued.

• The weight/volume of the full removal entitlement changed to 20 ftcontainer for staff without dependents and 40 ft container for staff withdependents

• No change to the current partial shipment entitlement for appointment ofless than two years. Clarification will be sought from the General Assemblyat its 71st session (fall 2016)

Relocation elements (continued)

Effective 1 November 2016

• Discontinuance of non-removal allowance.

• As a transitional measure, staff in receipt of non-removal allowance willcontinue to receive payment up to 5 years or until move to a new dutystation, whichever is earlier

• Determination of new lump-sum amounts (relocation grant)

Other elements

• Change in mandatory age of separation to 65 to be effective as of1 January 2018. Current staff members who are eligible to retire at60 or 62 will still be able to do so beyond 1 January 2018 (acquiredright)

• Lift of the freeze of increases to allowances for GS staff effective 1Jan 2016 and for staff in Professional and higher categorieseffective 1 Jan 2017

• New recruitment incentive for recruitment of experts in highlyspecialized fields where the Organization is unable to attractsuitably qualified candidates, up to 25% of annual base salary foreach year of agreed contract

No changes

• Dependent child and Secondary dependent allowance amounts

• Post adjustment and Rental subsidy scheme

• Special post allowance

• Repatriation grant amounts (after 5 years of eligible service)

• Annual leave, Special leave and 24-month home leave cycle

• Sick leave, maternity and paternity leave entitlements

• Official travel on recruitment, assignment, secondment, loan or transfer of staff members and eligible family members

• Daily subsistence allowance

• Rest and recuperation framework

• Danger Pay

• Security Evacuation allowance

Resources

http://commonsystem.org/cr/

Resources

http://commonsystem.org/cr/calc.asp

Thank you !