COMPENSATION
1. SUBJECT, APPLICABILITY AND DEFINITIONS Subject and Policy Rationale
1.01 The purpose of this Rule is to provide guidelines for periodic review of general levels of compensation and for periodic salary increases for staff of the Bank Group. This Rule, as amended, is effective July 1, 2007.
Applicability
1.02 This Rule applies to:
(a) staff members in headquarters holding Open-Ended, Term, Regular, Fixed- Term, and Part-Time appointments; and
(b) staff members in duty stations outside of headquarters holding positions subject to international recruitment and Open-Ended, Term, Regular, Fixed-Term, or Part-Time appointments.
Definitions
1.03 For purposes of this Rule, the following definitions apply:
(a) Salary Range. The term “salary range” means the spread between the minimum salary and the maximum salary for a given grade.
(b) Market Reference Point. The term “market reference point” means the point in the Bank Group’s salary ranges which is aligned with comparable salaries in the United States (U.S.) labor market and published by the Vice President, Human Resources the time of the annual salary review.
(c) Comparatio. The term “comparatio” means the ratio of the average net salaries to the average of staff market reference points, with the ratio expressed as a percentage.
authorized for distribution to Bank Group staff members, expressed as a percentage of current net salaries.
2. SALARY STRUCTURE General
2.01 Each grade of the Bank Group salary structure has a range of net salaries expressed in United States dollars. Salaries are determined net of taxes except as may be otherwise provided in a staff member's letter of appointment. The salary ranges for positions graded A through J will be published annually by the Vice President, Human Resources. Salary ranges are based on market reference points for each grade and are subject to review each year as provided in this Rule.
Grades A-I
2.02 Market reference points for Grades A-I will be established by the Bank Group in light of pay practices of selected U.S. comparator organizations in a market composed of public and private sector organizations. In selecting comparator organizations, the Bank Group will consider their quality, relevance, size and stability.
2.03 Salary data will be verified annually for the comparator organizations. For grades A through D, data will be based on private sector organizations of the U.S. market. For grades E through H, data will be based on private and public sector organizations of the U.S. market, and weighed at two-thirds and one-third, respectively. For grade I, data will be based on private and public sector organizations of the U.S. market, and weighed at 50 percent each. Data for the public sector will be weighted between the Federal Reserve and the U.S. civil service, by 40 percent and 60 percent, respectively. Data will also be weighted by occupational function, so as to broadly reflect the relevance of these functions for the Bank Group. All of the weights will be contingent on the availability of data. If no reliable public sector data is available for a given job, private sector data will be used, and vice versa.
2.04 The relationship of the market reference points for grades A through I to salaries in the private and public sectors of the U.S. market will be defined by the Bank Group in light of competitiveness considerations. The 75th percentile will be used to define the relationship to the U.S. private sector. The relationship to the U.S. public sector will initially be defined by the average plus 10 percent.
basis of Bank Group experience and Bank Group objectives relating to recruitment, career and retention experience, and the diversity of positions and functions accommodated within the particular grade.
Grade J
2.06 The market reference point for grade J will be established by extrapolation upward from the market reference point for grade I to a point below the salary of the President.
Above Grade J
2.07 The level of remuneration above grade J will be established by the President and will be above the market reference point for grade J and below the salary of the President.
International Competitiveness
2.08 The international competitiveness of the U.S. market will be tested every four years against a market comprised of comparator organizations from member countries selected by the Bank Group, currently France and Germany.
3. SALARY INCREASES Overall Pay Increase
3.01 The overall pay increase which would be required to bring the Bank-wide comparatio to an established level will be determined annually by the Bank Group. In determining whether the comparatio should be 100 in the future, a review will be made of market developments, including unexpected changes in the rate of inflation and the differences arising from the internal dynamics of the staff structures in the Bank Group. Distribution of the overall pay increase will recognize the staff member’s performance and contributions to the organization’s objectives, and will be determined based on guidelines published each year by the Vice President, Human Resources.
3.02 Staff members whose performance is unsuccessful will not receive a salary increase. Other confirmed staff members will receive at least the minimum increase (MI). The MI will equal 50 percent of the increase in the Washington D.C. Consumer Price Index - All Urban (CPI-U). A staff member will not be awarded more than the MI if such an increase would bring a staff member's net salary above the maximum of the salary range. A staff member on probation at the
under the salary increase matrix.
3.03 If as a consequence of a change in the salary structure a staff member’s current net salary is below the minimum of the grade, the net salary will be adjusted at the time of the salary review to the minimum of the grade or above.
Promotion Increase
3.04 Except as provided in paragraph 3.05, upon promotion to a higher grade pursuant to the provisions of Rule 5.05, a staff member will receive an increase equal to the greater of:
(a) 3 to 12 percent of the market reference point of the new grade up to the maximum of the salary range for the new grade; or
(b) the amount necessary to bring the net salary to the minimum of the new grade.
Staff Assigned To Lower Level Positions
3.05 A staff member who has been assigned to a lower level position will receive a promotion increase only upon promotion to a grade higher than the grade held prior to being assigned to a lower level position.
Confirmation Increase
3.06 Upon confirmation of appointment pursuant to the provisions of Rule 4.02, a staff member may receive a salary increase between zero and 5 percent of net salary.
Part-Time Appointments and Reduced Work Schedule
3.07 A staff member holding a Part-Time appointment or assigned to a reduced work schedule will receive salary increases based on net salary pro-rated in accordance with Rule 5.08.
4. MARKET PREMIUM ALLOWANCE
4.01 The Bank Group will pay a market premium allowance with respect to a limited number of jobs which meet the following criteria: (1) the job is one for which comparator organizations pay 35 percent or more above the Bank Group’s market reference point for the relevant grade;
and (2) the Vice President responsible for the position, with the approval of the Vice President,
anticipated difficulties in retention or recruitment of staff. The Vice President, Human Resources will establish, change or eliminate the market premium for such jobs annually based on data from private sector comparator organizations obtained by Human Resources Services Compensation Management. The amount of the market premium allowance will be in the range of 8 to 12 percent of the market reference point of the applicable grade.
4.02 The market premium allowance will be paid in a lump sum in June of each year with respect to the prior 12 months. Payments will be made only with respect to periods that the staff member actually holds the position. No payments will be made with respect to months during which a staff member holds the position for less than 16 calendar days. The market premium allowance will not be part of a staff member’s annual net salary.
4.03 The following staff members are not eligible for a market premium allowance:
(a) staff holding positions at level J and above;
(b) staff who are part of the Young Professional (or equivalent) Program;
(c) staff who are on developmental assignments; and
(d) staff whose service with the Bank Group terminates on or before the date on which the market premium allowance is paid.
5. RECRUITMENT BONUS
5.01 In exceptional circumstances, the Bank Group may pay a recruitment bonus if:
(a) a staff member is recruited outside of the Bank Group, and is appointed to a position subject to international recruitment; and
(b) the manager responsible for the position determines, with the approval of the responsible Vice President, and the Manager, Human Resources Team, that payment of a recruitment bonus is necessary to attract a candidate with essential skills required by the Bank Group, and/or to overcome the candidate’s reluctance to disrupt an established career or to uproot a family to accept a position with the Bank Group.
net salary, as determined by the manager responsible for the position, with the approval of the responsible Vice President, and the Manager, Human Resources Team. Two-thirds of the recruitment bonus will be paid in the first month of service, and one-third will be paid after six months of service. Recruitment bonus payments will not be part of a staff member’s annual net salary.
6. GENERAL Salary Calculation and Payment
6.01 Except when otherwise authorized by the Manager, Human Resources Services Compensation Management, salaries of staff members will be paid in United States dollars.
6.02 Salaries will be calculated on a monthly basis. Payment shall be made twice monthly of approximately 50 percent of that salary plus allowances paid on a periodic basis and less deductions. Periods of less than one month will be calculated on the basis of actual working days and paid holidays falling within the defined period. Except for overtime and shift differential payments, periods of less than one day will be counted as whole days provided that the staff member worked at least two hours. Allowances will be pro-rated.
Deductions
6.03 Salary payments will be made net of deductions for outstanding advances and loans due and payable in part or in full, and mandatory or voluntary benefit programs administered by the Bank Group including, but not limited to, the Staff Retirement Plan, health insurance, and life insurance.
Allowances
6.04 Allowances which are defined by reference to a percentage of net or gross salary will be adjusted with the same effective date as changes in a staff member's salary. Unless otherwise specified, allowances will not be part of a staff member’s annual net salary.
Leave Without Pay and External Service
6.05 A staff member who has been on leave without pay, or external service with or without pay, for a period of three calendar months or less as of the date of the general salary review will receive an increase under the salary increase matrix at the time of the general salary review. A staff member who has been on leave without pay, or external service without pay, for a period
increase at the time of the general salary review in the amount of the MI. A staff member who has been on external service with pay for a period longer than three calendar months as of the date of the general salary review will receive a salary increase at the time of the general salary review equal to the average percentage applied to adjust the market reference points at grades A through I.
Absence Without Leave
6.06 During periods of unauthorized absence from duty a staff member may have his salary, net of mandatory deductions, reduced by an amount pro-rated to the number of working days or hours of his absence.
Corrective Actions
6.07 Any retroactive adjustment of salary will take into account any changes in personnel status that have taken place during the period of retroactivity, as though the adjusted salary level had been in effect at the time of the change in status. Entitlements and deductions resulting from the change in status shall be recomputed in a like manner.
