People and Culture

Document type Policy Version 15.2

Audience Employees on a resident Effectivity date 01 October 2021
contract (delegation)
Document Owner PAC_CB Last Date of 20 January 2023
Publication
Implementation Owner HR Managers Initial entry into 13 January 2019
force
Consulted Valid until 24 January 2024
IHT Internal Original Language English

French Version
Spanish Version
Russian Version
Arabic Version

Compensation Policies: Resident field employees (currently

under review)

Content
1. Introduction .................................................................................................................................... 2
2. Responsibilities .............................................................................................................................. 2
3. Framework ..................................................................................................................................... 2
4. Salary scales .................................................................................................................................. 2
a. Methodology ............................................................................................................................. 2
b. Review of salary scales ............................................................................................................ 3
c. Transparency ........................................................................................................................... 3
5. Payment of salaries........................................................................................................................ 3
a. Currency of payment ................................................................................................................ 3
b. Location of payment ................................................................................................................. 4
c. Mode of payment ...................................................................................................................... 4
6. Salary evolution.............................................................................................................................. 4
a. Hiring salaries ........................................................................................................................... 4
b. Evolution over time ................................................................................................................... 5
c. Promotion increases................................................................................................................. 5
d. Off-cycle increases ................................................................................................................... 7
e. Temporary Step-up allowances ............................................................................................... 7
7. Annual salary review (ASR) ........................................................................................................... 8
a. Timing ....................................................................................................................................... 8
b. Eligibility.................................................................................................................................... 8
c. Budget ...................................................................................................................................... 8
d. Increases .................................................................................................................................. 8
e. Mandatory increases ................................................................................................................ 9
f. Lump sums in lieu of increases ................................................................................................ 9
8. Adjustments for economic difficulties (e.g. high consumer price inflation) .................................... 9
Annexes & Links ..................................................................................................................................... 10
Glossary ........................................................................................................................................... 10
History ........................................................................................................................................... 10

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1. INTRODUCTION
The International Committee of the Red Cross (ICRC) is a highly diverse organization, with staff members
from over 140 countries. Employees are proud to work for the ICRC and show strong commitment to its
purpose and Fundamental Principles. Compensation, together with elements such as career and learning
opportunities, help attract, motivate and retain employees.

The ICRC is committed to offering and maintaining salaries and benefits within a framework that is
transparent, externally competitive, internally equitable and financially sustainable.

The ICRC does so in compliance with applicable laws and regulations. The policies herein are subject to
the requirements of the local labour law.

All employees are compensated without any discrimination based on ethnicity, religion, gender, sexual
orientation, national origin, age, disability or marital status.

This document replaces and supersedes any prior document related to compensation policies. The ICRC
reserves the right to modify and update this document at any time.

2. RESPONSIBILITIES
This compensation framework and decisions related thereto are the shared responsibility of the ICRC’s
leaders, managers, including talent managers; and the Department of People & Culture (PAC).

The Assembly’s Recruitment and Remuneration Commission approves the remuneration of the
president, the vice president, the directors, the head of the Internal Audit Unit and the other members
of the governing bodies who have special mandates.

The remuneration of all other employees is determined through policies and frameworks for which the
Directorate is ultimately responsible.

HR’s Compensation and Benefits Centre of Expertise (C&B), overseen by the HR director, is responsible
for:
• developing frameworks and policies approved by the leaders (the Directorate and/or Assembly
Council)
• monitoring compensation programmes administered by PAC
• providing advice and support to the PAC Operations Division, to allow them to properly advise
and support managers and other employees.

HR managers – and line managers with the support of HR managers – are responsible for explaining
and consistently implementing these policies in the area(s) and location(s) they are responsible for.

3. FRAMEWORK
This compensation framework is based on the job grading system, which is the foundation of many PAC
activities, and consists of generic roles that are developed and controlled by the various lines of work
(métiers). C&B is responsible for maintaining the job grading system and ensuring it is coherent.

4. SALARY SCALES
a. Methodology

Salary scales are established in each country for the grades and roles in the job grading system.
The salary scale applicable to a given employee therefore depends on how their position maps to a
generic role in their location.

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Salary scales are built on salary surveys conducted in each country by independent external
companies.

The salary surveys cover the main sectors of the economy in which the ICRC is competing in terms
of talent, skills and experience:

• international non-governmental organizations (INGOs)

• international governmental organizations (IGOs) and embassies
• the private sector
If the number of participants in a salary survey is limited, it can be complemented with data from
further relevant comparators, in agreement between C&B and the Delegation.

The salaries offered by the ICRC are positioned in between those of the three sectors.

Governments can be considered, on an exceptional basis, in the very few locations where they are
a primary competitor, provided salary data are available.

When supported by external salary data, role-specific salary scales can be established for roles
whose incumbents are paid higher salaries on the local labour market than incumbents in the
majority of other roles at the same grade.

The same methodology is followed to build salary scales in all countries.

b. Review of salary scales

Salary scales are reviewed on an annual basis. When adjustments are made, the new salary scales
come into effect on 1 April.

Under very exceptional circumstances, such as economic difficulties resulting in high local salary
inflation, the salary scales can be reviewed more frequently. The need for such exceptions must be
approved first by the delegation concerned, then by the Financial Planning and Analysis Unit, then
by C&B. In the event of a disagreement, the HR director makes the final decision. Further details
are provided below in section 8.

c. Transparency

Employees have access to the salary scales that apply to them. Each delegation decides on the
most appropriate way to publish salary scales in their location(s).

5. PAYMENT OF SALARIES
a. Currency of payment

All employees are paid in the local currency of their country of employment.

If employees were paid in foreign currencies, it can contribute in weakening the local currency and
create even more economic difficulties in countries where the ICRC works.

Salaries are therefore only exceptionally paid in a foreign currency and if all the conditions below
are met:
• The country’s laws allow salaries to be paid in a foreign currency.

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• The predominant practice in the country, or within the humanitarian sector in the country, is
to pay salaries in a foreign currency.

• The country’s economy is officially or de facto based on a foreign currency that is widely
used in daily life.

• The local currency is losing or has lost most or all its value against foreign currencies as
per the Finance and Administration Division’s exchange rate tables.

If salaries are paid in a foreign currency, everything related to salaries (e.g., salary scales, statutory
and voluntary deductions, related financial provisions) are expressed in the same foreign currency.

Such exceptions must be approved first by the delegation concerned, then by the Financial Planning
and Analysis Unit, then by the HR Management Framework and Compliance Centre of Expertise,
then by C&B and the HR director, who makes the final decision in the event of a disagreement.

All exceptions are reviewed annually, if not more frequently, with the aim of ultimately returning to
paying in local currency based on the criteria above as soon as local conditions allow.

b. Location of payment

All employees are paid in their country of employment. Resident employees on Field missions
remain paid by their home delegation in their home country.

Exceptions can only be made to pay an employee’s salary in another country when:
• the banking system of the country concerned does not allow salaries to be paid in the
country of employment.

• payment in another country is allowed under the laws of all the countries concerned.

Such exceptions must be approved first by the delegation, then by the Financial Planning and
Analysis Unit, then by the Centre of Expertise HR Management Framework and Compliance, then
by C&B and the HR director, who makes the final decision in the event of a disagreement.

c. Mode of payment

All salaries and other compensation and benefits are paid by bank transfer. Exceptions can only be
made when the local banking system has stopped functioning and payment in cash is the only
possible alternative.

Such exceptions must be approved first by the delegation, then by the Financial Planning and
Analysis Unit, and then by the Centre of Expertise HR Management Framework and Compliance.

6. SALARY EVOLUTION
a. Hiring salaries

Hiring salaries (i.e. salaries paid when starting employment with the ICRC) take into account:
• the salaries of peers in the same or a comparable role, in order to maintain internal consistency
between new arrivals and current employees.
• the professional skills and expertise that the new arrival brings relative to the requirements of
the position, as per the table below.

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The HR manager of the delegation and the line managers concerned are responsible for the
consistent and balanced application of both principles.

Tier 1 Tier 2 Tier 3

The employee is capable of
carrying out the position but
doesn’t have the full range of
skills and expertise required
for the position and does not
have a lot of experience at this
level.
The employee has all the
skills and expertise required
for the position in all areas
and can demonstrate
significant experience in
similar positions at this level.
The employee has
substantially more skills and
expertise than required for the
position and has been in
similar positions at this level
for many years.

The full breadth of the scale can be used to set hiring salaries

b. Evolution over time

During employees’ careers with the ICRC, their individual salaries increase over time with the salary
scales, in line with local salary inflation.
Their careers and salaries may also develop progressively over time, and possibly over several
grades, as a result of other factors. For example:
1. After joining the organization at a certain grade (B1 in the
example below), the employee carries out their
responsibilities for a number of years, achieving a higher
level of performance, which, following successive annual
salary reviews, drives up their salary on the salary scale.

2. In parallel, the employee develops skills and experience allowing them to be promoted,
outside of the annual salary review cycle, to a position in a higher grade (e.g. B2). The
promotion leads to a base salary increase. More details about salary increases linked to
promotions can be found under (c) below.

3. After the promotion, the employee again sees their salary increase on the salary scale over
time.

This scenario can repeat a number of times until the employee’s career stabilizes at a certain grade.
Salary scales are wide, and employees can spend many years in positions at the same level before
any promotion. Employees should therefore not expect progress on the scale over a short period—
it takes a number of years. Progression within tier 1 is generally faster than in the other tiers.

c. Promotion increases

Promotions are movements to a position of a higher grade. Promotions can take place at any time
during the year.

Promotions are typically from one grade to the next, as the difference in terms of the competencies
required for a position two grades up is significant and cannot typically be achieved without a
significant stretch. Having some experience at the intermediate level is therefore usually necessary.

Promotions to a higher grade bring a salary increase, except where the employee’s base salary is
already equal to or above the maximum on the scale for the new position.

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As outlined above, a typical career progression sees an employee acquire experience and develop
competencies over a numberof years in a specific role. Their salary progresses over time on the
salary scale for their role through annual salary reviews. After a while, the employee can be
promoted to another position at a higher grade. As higher positions typically require more
experience and competencies, the salary for the new position is generally expected to be on the
lower end of the new salary scale. From there the salary will again progress on the scale over time.
The amount of the promotion increase will depend on the position of the employee’s salary at the
time of the promotion.

Here are three standard cases for illustrative purposes:

1. If the employee’s base salary is high on the salary scale for their current role, they are likely to be
already relatively well positioned on the scale for the new role. The salary increase, if any, will be
limited.

min max

B3 scale
B2 scale

min max
old salary
new salary
salary increase

2. If the employee’s base salary is around the middle of the salary scale for their current role, the
salary increase will be larger than in the previous case.

min max

B3 scale
B2 scale

min max
old salary
new salary
salary increase

3. If the employee’s base salary is relatively low on the salary scale for their current role, the salary
increase will be larger than in the two previous cases.

min max

B3 scale
B2 scale

min max
old salary
new salary
salary increase

The amount that salaries increase with a promotion differs from country to country, depending on the
structure of the salary scales in that country. In countries where the difference between the salary
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scales at successive grades is relatively small, the increases will be smaller than in countries where
there is a bigger difference between the salaries from one grade to the next.

C&B sets out the global framework, which is applied locally by the delegation’s HR manager.

d. Off-cycle increases

On an exceptional basis, an employee’s salary may be increased “off-cycle” (i.e. outside of the
annual salary review), either when they take on significantly more responsibilities within the same
grade (i.e. without being promoted to a higher grade) or because of other exceptional
circumstances, as validated by the HR Partner.

Off-cycle salary increases should typically not exceed 10% although, depending on the local
context, they could be higher. Off-cycle increases are validated at delegation level by the HR
Manager. Any off-cycle salary increases exceeding 10% must be validated by the HR Partner. In
any case the new salary cannot exceed the maximum on the salary scale for the position.

e. Temporary Step-up allowances

Temporary step-up allowances are paid when an employee formally and fully takes up an ad interim
position at a higher grade for a limited period of time (more than three consecutive months but no
longer than 12 months), for instance during the extended absence of a colleague. These allowances
are not paid when an employee temporarily takes up a position at the same grade, as positions in
the same grade have the same salary scale, or when the employee only takes up part of the
responsibilities of the higher position.

The step-up allowance is a percentage of the employee’s base salary. The exact percentage differs
from country to country based on the structure of the salary scales and how big the difference is
between successive scales. C&B sets out a global framework, which is applied locally by the
delegation’s HR manager.

Should the total salary (base salary + temporary step-up allowance) be lower than the minimum of
the salary scale for the temporary position, the temporary step-up allowance is increased so that
the total salary is equal to the minimum of the scale for the temporary position. For instance, in a
country where the step-up allowance is equivalent to 10%:

Country with a step-up allowance of 10%

Base salary 80,000

10% step-up allowance 8,000

Total salary 88,000

Minimum on scale for 92,000

temporary position

Step-up allowance 12,000

Should the total salary (base salary + temporary step up allowance) exceed the maximum of the
salary scale for the temporary position, the temporary step allowance is reduced so that the total
salary is equal to the maximum of the salary scale for the temporary position.

Should the base salary exceed the maximum of the salary scale for the temporary position, no
temporary step up allowance is paid.

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Temporary step-up allowances are paid monthly from the first to the last day of the period during
which the employee is acting in the position. If the duration of the temporary period is uncertain at
first, the payment of the step-up allowance is delayed until the beginning of the fourth month and
then paid retroactively for the first three months.

At the end of the period, if the employee:

• takes up the position on a permanent basis, the temporary step-up allowance is withdrawn,
and the employee is granted a salary increase due to promotion. It is possible for the
promotion increase to be lower than the step-up allowance.

• goes back to their original position, the temporary step-up allowance is withdrawn.

• takes any other position, the base salary in effect before the interim period serves as the
basis for determining the new salary.

7. ANNUAL SALARY REVIEW (ASR)

a. Timing

There is one annual salary review for all ICRC employees (mobile and resident, at headquarters
and in the field). It takes place during the first quarter of the year and new salaries come into effect
on 1 April.

Exceptions are only possible if local law requires annual salary reviews to come into effect on
another date.

b. Eligibility

All employees hired before 1 October of the previous year who are therefore part of the performance
management process are eligible.

Employees must still be employed on 1 April of the following year to receive the increase.

It is currently not possible to review salary for more than one type of increase via concurrent
processes. Any promotional or off-cycle salary increase taking effect during the annual salary review
cycle (from 1 January to 31 March) should therefore be inclusive of any annual salary review
increase. Following this, employee becomes ineligible for the annual salary review.

c. Budget

The budget for salary increases, which is set for each country by C&B and approved by the
Directorate, is based on the movement in the salary market (or salary inflation) for each country,
as reflected by external survey data, and by the affordability for the ICRC. This ensures that
employees’ salaries progress in line with those of the country’s labour market.

d. Increases

Salaries are increased based on individual performance, as determined by the performance

management and development process and/or years of service. Years of service are the main driver
for employees in positions at grade A, while individual performance is the main driver for employees
in higher grades.

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Among employees with the same level of performance or the same number of years of service,
those whose base salary is lower on their salary scale will receive a higher percentage increase
than those whose base salary is higher on their salary scale. This allows employees to progress on
the salary scale over time and slows the progression of those who are closer to the maximum on
the scale. Regular over-performers whose base salary is low on their salary scale will therefore
progress more quickly on the scale.

For employees, regardless of grade of their position, any ASR increase and/or lump sum is subject
to a minimum level of performance. Therefore, employees with performance rating of “Did Not Meet
Requirements” do not get any ASR increase and/or lump sum.

For employees in grades B and above, failure to complete self-assessment by the 31st January will
result in no ASR increase and/or lump sum (if any).

In the case of an employee having completed their self-assessment but with no performance rating
being assigned by the line manager by the 31st of January, the employee will still be eligible for the
ASR based on default rating of “Strong effective performance – Clearly achieved performance
requirements”.

New salaries cannot exceed the maximum of the salary scale. Employees whose salaries exceed
the maximum of the salary scale are not eligible for salary increases.

e. Mandatory increases

In countries where increases are mandatory under local labour laws, those increases are granted
accordingly. If local salary inflation is higher than the mandatory increase(s) granted during the year,
the difference will be awarded during the annual salary review; otherwise the mandatory increase
will replace the annual salary review.

f. Lump sums in lieu of increases

Employees whose salaries are above the maximum on their scale and who therefore cannot receive
further increases, but who would otherwise be entitled to an increase because of their performance
can receive a lump sum in lieu of a salary increase in order to recognize and reward their
performance and conduct.

The payment of a lump sum in lieu of a salary increase is a discretionary decision taken by the
management of the delegation. Receiving a lump sum in a given year does not guarantee the
payment of a lump sum for the following year, should the employee’s salary still be above the
maximum on the salary scale for their position.

The lump sum is a one-off payment and is not included in the base salary. It is subject to any
statutory deductions under the applicable laws and regulations.

To be eligible, employees must receive a performance rating of at least “Partially Met

Requirements”.

Lump sums can be paid in lieu of increases.

8. ADJUSTMENTS FOR ECONOMIC DIFFICULTIES (E.G. HIGH CONSUMER PRICE INFLATION)

In the event the economic situation becomes difficult, i.e. the official consumer price inflation exceeds
15% for three consecutive months, a temporary cost-of-living allowance can be put in place.

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Temporary cost-of-living allowances must be approved first by the delegation, then by the Financial
Planning and Analysis Unit, then by C&B and the HR director, who makes the final decision in the event
of a disagreement.

The existence and amount of the temporary cost of living allowance is reviewed regularly. Depending
on how the economic situation has changed, the allowance can be:
• reduced or removed if the effect of high inflation decreases or disappears.
• maintained if the effect of high inflation remains unchanged.
• increased further if inflation substantially increases again.
• included in the salary when it is clear that the economic situation will not return to the original
situation and local salary inflation has caught up with the allowance.

Devaluation of the local currency against any other currency is not in itself sufficient to implement a
temporary cost-of-living allowance, as devaluation does not necessarily translate into consumer price
and salary inflation.

Annexes & Links

Infographic: Remuneration system for field resident staff

Glossary
N/A

History
Approver and Date
Version Date Updated By Notes / Summary of changes
Approved
1.0 13.01.2019 PAC_CB First version
2.0
3.0 07.02.2019 PAC_CB Page 7 section e), there are two times the
same paragraph, one needs to be removed.
And page 8 says "the employee is granted a
promotion increase and/or a position premium
is added to their base salary (as per section
10 below)", but there is no section 10 in this
document.

Corrected this section above as suggested by

Christelle V from LIN_PUB
4.0 07.02.2019 PAC_CB addition of link to the French version.
5.0 11.02.2019 PAC_CB added links to the Spanish version.
6.0 05.03.2019 PAC_CB added links to the Russian version.
7.0 21.03.2019 PAC_CB added links to the Arabic version of the
document
8.0 05.07.2019 PAC_CB Changes made to chapter 6c Promotion
increase (3rd paragraph) and 6e paragraph
starting with (3rd paragraph)
9.0 31.07.2019 PAC_CB first paragraph of section 7.e was duplicated
with slightly different wording. We have
removed the unnecessary paragraph, so we’d
appreciate if the change can be made live. as
edited by Philippe F for CoE CB
10.0 17.09.2019 PAC_CB Changes made to 6d.- off-cycle increases
(last sentence), 6e. temporary step-up
allowance (paragraphs 3,4 &5) and 7d
(paragraph 3) By Caroline B. for C&B
11.0 19.09.2019 RH_OP_FD Last sentence for 6d Off cycle - determined
was changed to validated as requested by
Sven for RH_OP_FD.
12.0 01.10.2019 PAC_CB Deletion of last sentence in off cycle section.
as instructed by Sven and agreed by Caroline
B for C&B
13.0 01.04.2020 PAC_CB Colour of the graphs in section 6 c now
matches the HQ+mobile policy. Also,
additional changes included in section Off-
cycle increases (6.d) and ASR eligibility (7.b)

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Approver and Date

Version Date Updated By Notes / Summary of changes
Approved
14.0 01.12.2020 PAC_CB Updated the section on ASR Eligibility (7b) to PAC_CB,
indicate that eligibility is also dependent on Aleksandra Klaic
completion of PMD self-assessment by 31st of 30.11.2020
January.
RH_COE_FC
Also updated the format and layout using the April Sarmiento /
new policy template. Ellen Tañeca
01.12.2020

15.0 21.01.2022 RH_COE_FC Updated the sections on ASR (7): PAC_CB,

- Eligibility (7b) Aleksandra Klaic
- omitted completion of PMD self- 19.10.2021
assessment by 31st of January and
- omitted default rating of “meets
expectations” in case no rating from the RH_COE_FC
line manager was placed until 31st of Ma Charlene
January Gawaran / April
- updated the annual salary review cycle Sarmiento
(from 1 January to 31 March) 25.01.2022
- Increases (7d)
- Changed grade A to regardless of grade
of their position
- Clarified that there is no ASR increase
and/or lump sum for employees with “Did
Not Meet Requirements” performance
rating
- Added dependency of completion of self-
assessment by 31st January to be
eligible for ASR increase
- Added default rating of “Strong effective
performance – Clearly achieved
performance requirements” for
employees having completed their self-
assessment but with no performance
rating assigned by the line manager
- Lump sum in lieu of increases (7f)
- Changed “Partially Met Expectations” to
“Partially Met Requirements”
- Updated Lump sums can be paid in lieu
of increases
15.1 02.01.2023 Shayne Marie Updated HR to PAC
ARAULLO, Updated RH_COE_CB to PAC_CB
PAC_STRAT_FC
15.2 20.01.2023 Ana LACHICA Editorial/minor change—no need for
PAC_START_FC document owner approval

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