Remuneration and terms of employment of EIB Staff

Date: 13/05/2006

1. Basic salaries

For members of staff in Functions C to K, see salary scale.
The basic salaries of the members of the senior management cadre range from EUR 14 938,37 per month to EUR 18 449,58 per month. The bonus paid to members of the senior management cadre is a variable element of remuneration designed to reward individual performance; it is possible for no bonus to be paid. In net terms (i.e. after tax), the average bonus paid to the persons concerned in 2006 corresponded to 24% of their annual average salary. For members of the senior management cadre taken individually, the "net bonus/net salary" ratio worked out at between 11% and 41%.

2. Taxations rules applicable to EIB staff

Protocol on the Privileges and Immunities of the European Communities

This Protocol is annexed to the Treaty of Rome. Under Articles 13 and 22 thereof, EIB staff are exempt from national taxes on salaries, wages and emoluments paid by the Bank. On the other hand, they are liable to a tax on those salaries, wages and emoluments established for the benefit of the European Communities: Community tax.

Community Tax Regulation

Council Regulation No. 260/68 of 29 February 1968 lays down the conditions and procedure for applying the tax for the benefit of the European Communities. The proceeds of this tax are entered as revenue in the Community budget.

Tax scale

The original tax scale was laid down by Regulation 260/68: coefficient of 100% . This coefficient is readjusted on a regular basis by the Council of Ministers of the E.C. The current coefficient adapting the tax brackets is 486.7097%.

Some key-concepts concerning the community tax:

Progressive tax scale: as with the majority of national taxation systems, Community tax is based on the principle of a progressive tax scale: the greater the taxable income the higher the rate of tax.
Brackets: Progressive taxation is achieved by dividing the scale into brackets. The taxable amount in each bracket is taxed at the rate applying to that bracket.
Top bracket: the lowest bracket is zero-rated for tax purposes, the second is taxed at 8%, and so on up to the top bracket, which is taxed at the maximum rate of 45%.