Despite a longer road to the finish, the candidate rises as the favored choice. The First Vice President and Minister of Economy, Nadia Calviño, faces off against European Commission vice-president Margrethe Vestager, a formidable rival for the presidency of the European Investment Bank (EIB). If Calviño secures the role, she would gain not only the position but a salary that far exceeds the current level. The base pay for top EU officials is a well-known benchmark, and the EU system offers a package of benefits that go beyond the headline salary. These include allowances, pensions, and a tax framework designed for workers within the European sphere. Is joining a European institution worth the commitment for a professional in this field?
There are no tricks when it comes to monitoring the duties of staff within European institutions. Although many rules have been codified over the decades, appointments are public and finalized at the start of each year. This transparency includes the EIB. A rule dating back to 1958 states that the president’s monthly salary mirrors that of the European Commission president. The current holder, Ursula von der Leyen of Germany, earns a salary that equals 138% of the base monthly amount granted to senior EU officials (the 3rd step of grade 16).
When translated into numbers for 2023, this means that von der Leyen’s gross monthly pay is 31,783.17 euros, totaling 381,398 euros gross per year. That same figure is the benchmark used for the Council President, Charles Michel, and could form the basis for Calviño’s potential earnings as EIB president.
Other senior roles follow the same framework. The salaries of EIB vice presidents are pegged to the monthly pay of their European Commission counterparts. Since 1967, these salaries have been set by the Council, representing the governments of the Member States. Under this system, vice presidents and commissioners are compensated at 125% and 112.5% of the base salary for senior EU officials, respectively (grade 16/3). Consequently, EIB and EC vice presidents receive about 28,789.1 euros gross per month (roughly 345,496.2 euros gross per year), while commissioners earn around 25,910.19 euros gross per month (approximately 310,922.28 euros gross per year).
Regarding the European Parliament, the 705 Members decide their allocations within a unified regulation, funded from the institution’s budget. Members receive 38.5% of the base salary of a judge from the Court of Justice of the European Union. Before tax, a MEPs’ gross monthly salary sits at 9,975.42 euros (about 119,705.04 euros per year). After national tax and social security contributions, the take-home amount drops to around 7,776.06 euros monthly (approximately 93,312.72 euros per year). Salaries for other staff across EU institutions are guided by a tiered base-salary table that reflects role and rank. Administrative posts show monthly gross ranges from 3,327.39 to 23,031.28 euros in 2023, while assistant positions span roughly 2,917.16 to 6,120.77 euros gross per month.
Tax exemptions and rebates
Beyond salaries, EU public officers enjoy several social rights, including a favorable tax regime. Article 12 of the Protocol on Privileges and Immunities, added to the EU Treaties, provides that civil servants and other EU staff are exempt from national taxes on salaries and pensions paid by the Union. In return, income subject to EU taxation is taxed on a progressive scale with 14 rates ranging from 8% to 45%. The top rate applies to the salaries of the highest offices in the Commission, such as commissioners. In effect, EU personnel pay less tax than would be charged in their home countries because they owe EU tax into the EU budget rather than national systems. Deductions commonly available in national tax systems, such as property taxes or mortgage relief, do not apply in this framework.
In addition, EU staff contribute a 7% solidarity levy and contribute to social security. Pension payments are taxed at the Union level (10.2%), with 1.70% earmarked for health insurance and 0.10% for accident insurance. All revenue from EU income tax and the solidarity tax flows into the EU budget as own resources.
Regarding pensions, MPs are eligible for retirement benefits beginning at age 63. The pension equals 3.5% of the parliamentary allocation for each full year of service, capped at 70% of that amount. A voluntary retirement fund for MPs was established in 1989, but since July 2009 new members could not join as the fund was gradually phased out.
EU officials also enjoy lifestyle allowances tied to daily life. Entertainment allowances cover meals and similar expenses, varying by institution and member location. For example, in 2022 the European Parliament offered a fixed daily allowance of 338 euros to cover accommodation, meals, and related costs, and 160 euros if meetings take place outside the EU. Parliamentary activities may be reimbursed for rent, office management, communications, and related expenses, with two-thirds of healthcare expenses reimbursed. For travel, MEPs can be reimbursed for actual ticket costs to attend meetings in Brussels or Strasbourg, up to a yearly cap of about 4,716 euros.