Even though the process takes longer than necessary, he emerges as the favorite. First Vice President and Minister of Economy Nadia Calviño is going toe-to-toe with European Commission vice-president Margrethe Vestager, who is a very strong rival for the presidency of the European Investment Bank (EIB). If you take it Calviño will win double awards: position and salary more than desired multiplies his current salary of €84,600.78 gross per year by four. In addition to these benefits, there are other benefits that all officials of the European Union receive, such as allowances, pensions or a tax system that only affects workers in the ‘European bubble’. Is it so advantageous to ‘sign’ to a European institution?
There are no tricks and no tricks when it comes to keeping track of employees’ duties in European institutions. Although some rules have been written down for decades, all appointments are public and determined at the beginning of the year. This is the case of the EIB. A 1958 rule establishes that: The president’s monthly salary will be equal to that of his counterpart in the European Commission. The salary for this position, currently held by German Ursula von der Leyen, is calculated as 138% of the monthly base amount of senior EU officials (3rd step of grade 16).
If these civil servants earn 23,031.28 euros gross per month, this means that Von der Leyen will receive a gross monthly salary of 31,783.17 euros in 2023. gross per year was 381,398 euros. This amount is also the amount that Council President Charles Michel received and could be given to Nadia Calviño if she became EIB president.
Other senior positions are calculated in the same way. The salary of EIB vice presidents is the same as the monthly salary of their counterparts in the European Commission. Since 1967, the salaries of vice presidents and commissioners have been determined by the Council, that is, by the governments of the Member States. According to these standards; salaries of vice presidents and commission members were calculated as 125% and 112.5%base salary of senior EU officials respectively (grade 16/3). In this way, EIB and European Commission vice presidents earn 28,789.1 euros gross per month (345,496.2 euros gross per year) and commissioners earn 25,910.19 euros gross per month (310,922.28 euros gross per year).
As regards the European Parliament, the allocations of the 705 MEPs are determined in the single Regulation and are paid from the budget of the institution and They receive 38.5% of the base salary of a judge of the Court of Justice of the European Unionwith. His gross monthly salary before tax amounts to 9,975.42 euros (€119,705.04 per year), and after paying EU tax and accident insurance contribution the amount remains at 7,776.06 euros per month (€93,312.72 per year). Salaries of other staff in European institutions are managed according to a tiered table of monthly base salaries according to their role and rank. Monthly salaries in administrative positions range from 3,327.39 to 23,031.28 euros gross in 2023, while in assistant positions, monthly salaries range from 2,917.16.61 to 6,120.77 euros gross.
Exemption from national taxes and rebates
In addition to salaries, EU public office holders also have a number of social rights. One of these affects taxation, which is included in Article 12 of the Protocol on Privileges and Immunities (PPI) added to the EU Treaties. According to this article, civil servants and other employees of the Union are exempt from national taxes on salaries and pensions paid. In return, Subject to progressive tax for the benefit of the Union It is applied to taxable income based on 14 rates ranging from 8% to 45%. The maximum rate (45%) applies to most salaries of people in the highest positions in the Commission, such as commissioners. That is, officials of European institutions pay less tax than in their country of origin: after all, they only pay EU tax, which is clearly lower than that of almost all Member States. In this context, EU personnel do not benefit from deductions from taxable income applicable in national tax systems, such as property taxes or mortgage loans.
In addition, EU staff pay 7% solidarity fee and contributes to social security: the pension is also subject to Union tax (10.2%), and employees must allocate 1.70% to health insurance and 0.10% to accident insurance. All revenues from both the EU income tax and the solidarity tax go to the EU budget and are counted as own resources.
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Regarding pension, MPs have the right to receive a salary. Financial retirement benefit when they turn 63. This amount corresponds to 3.5% of the parliamentary allocation for each full year in which the task is performed, provided that the resulting amount does not exceed 70% of this. A voluntary retirement fund for MPs was created in 1989, but since July 2009 new members of the chamber have not been able to join this fund as it has been gradually abolished.
Finally, EU officials benefit from salaries that affect their daily lives. “Entertainment allowances” are available for meals and other forms of entertainment, which vary by institution and e.g.member’s location. For example, in 2022, members of the European Parliament were given the following rights: Fixed daily allowance of €338 to cover accommodation, meals and other related expenses, and €160 if meetings are held outside the EU. Expenditures from parliamentary activities, such as the rent and management of offices, telephone or conference organisations, amounted to €4,778 per month, and they were also entitled to reimbursement of two-thirds of their healthcare expenses. Regarding travel, Members of the European Parliament will be able to cover the actual cost of tickets to attend meetings held in Brussels or Strasbourg, up to a maximum of 4,716 euros per year.