Search Q&A
EU contractual agents - allowances - help please
Anyone who can help me with info on the allowances granted to EC contractual agents?
I've been offered a job as a contractual agent function group IV at the European Commission. While my official job offer referred to a brut salary, I cannot seem to get any information as to whether I will qualify for certain allowances or not. The 16% foreign residence allowance and the 2% family allowance, for instance, can together make a huge impact (up to 600-700 euros difference) on my net salary and I find it impossible to comprehend that the HR and the PMO are refusing to confirm whether or not I will qualify for these. They're telling me I will know AFTER I enter the service and start my job. If I don't qualify for the allowances, I am risking starting a new job that will earn me less than my current salary.
- Since I have been registered at the Brussels commune only since 2010 and since my main residence for tax purposes has always been another EU country (not Belgium - my employer and my employment contract are based in another EU country and I've been appointed to Belgium for the purposes of my job), I believe I should qualify for the 16% foreign residence allowance.
- When is the 4% expatriation allowance granted?
- For the household allowance, I believe there is a threshold amount that my spouse would need to be earning below of for me to be able to qualify for the 2% household allowance. I was told by DG HR at some point that this was around 3,000 euros net per month and if my spouse earned less than that, I could qualify for the allowance. However, the HR person wasn't sure of the exact amount and the PMO is refusing to tell me before I start my job. Does anyone know what this amount is so I can be prepared as to what to expect?
Thanks for any hints that you may be able to provide!
They won't tell you if you qualify for the allowances before you're hired, as it's a different office that handles all the allowances, and there is a lot of paperwork involved and the process can sometimes be long and tricky. You will be paid the basic salary for the first few months while they process your paperwork and then once they figure out which allowances you're allowed, you'll be paid them in arrears.
I'm a long-term contract agent, so can probably answer most of your questions.
Regarding expatriation (16%), if you're recruited in Belgium (which you will be in spite of your tax situation) you generally have to fulfill two of the following conditions: a) exercise your democratic (voting) rights in another country, b) own property in another country, c) have your main "centre of interests" - i.e immediate family - in another country. You have to be able to mark two out of the three conditions, and you have to be able to match them to the same place, i.e to vote and own property in the same town, or to vote and have family in the same town. They are seriously strict with the conditions for expatriation these days, so if you can't meet the requirements, you'll only be eligible for the 4% foreign residency allowance.
The threshold for the household allowance is €42.486,00 before tax /year. If your spouse earns less than this (they will ask to see her tax return) then you will get it. It is equivalent to €170,52 plus 2% of your basic salary. If she earns more than that then you won't get it until you have your first child (when you automatically get it).
In addition, if your spouse earns below the threshold, she will qualify for "top-up" health insurance through the Commission. It's not worth using for most things, but makes a big difference for glasses, hospitalisation and dentists, as the Commission's ceiling for reimbursements are usually higher than those used by the Belgian mutuelles.
Good luck!
