benefits granted by giz for development workers hr 1b_benefits... · • provided that you have...
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Support for Development Workers, Financial Settlement OE 6830 Date: April 1st, 2019
Benefits granted by GIZ for
development workers
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System of benefits for development
workers
• Basic living allowance EUR 850
• Oversea bonus for development advisors EUR 850
Supplement for spouse EUR 340
Supplement per child EUR 170
• The oversea bonus is paid to development workers from the contractually stipulated
outward relocation date.
• As a general rule, the oversea bonus is tax-free, even during periods spent in
Germany (outside the preparatory period).
• Development workers are entitled to claim the above supplements to the oversea
bonus for dependent family members even if those family members do not relocate
with them to the country of assignment.
Taxable!
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Income tax
As a general rule, the allowance is subject to income tax.
No residence in Germany Residence in Germany
Limited tax liability
with tax class 1
(Application submitted by GIZ)
Unlimited tax liability
based on current income tax details
(ELStAM)
Detailed information on tax liability in Germany, residence rules, double household status, joint tax assessment,
child benefit, etc. can be found on the intranet at:
Home Services Personnel Foreign assignments Current news: Task Force on taxes during
assignments outside Germany
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Cost of living adjustment
• Germany’s Federal Statistical Office uses a special basket of
goods for development workers to calculate inflation rates in
partner countries.
These inflation figures are used to calculate quarterly the living
adjustments.
• Only positive inflation figures are taken into account.
• The post adjustment is applied to 100% of the following
allowances: basic living allowance and oversea bonus
(including the family supplements for accompanying family
members).
• Avoidance of hardship rule: Any quarterly reduction will be
limited to 10%.
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Interest-free advanced payment
• Payment subject to application
• Cashflow support, e.g. to pay medical
expenses up front or provide a deposit
for accommodation
• Repayable at end of contract
Development
workers EUR 2,000
Accompanying
spouse 30%(even if spouse has own
contract)
EUR 600
Per child 20% EUR 400
Tax-free
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Rent allowance
Requirement
This allowance is payable only if you are invited to attend a preparatory
course at such short notice that you are unable to comply with the
cancellation notice period in your tenancy agreement or it is not possible
to find another tenant to cover the period in question on time.
• Rent allowance for your previous accommodation
(basic rent only for up to 3 months)
If you are an owner-occupier, the allowance is payable
up to the local rental value of the property.
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Equipment and furnishing allowance
• Term: 24 month
• Generally taxable
• (Partially) repayable if your
contract ends before the full term
(for whatever reason)
• Monthly allowance from the
25th project month
Development worker EUR 3,600
Accompanying spouse/civil
partner 30% (even if spouse
has his/her own contract)EUR 1,080
Per child 20% EUR 720
From the 25th project month:
Development worker
Accompanying spouse/civil
partner
Per child
EUR 100
EUR 30
EUR 20
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Lump-sum furniture storage allowance
• Generally taxable
• Monthly allowance starting on the relocation date
Development worker EUR 50
Accompanying
spouse/civil partnerEUR 15
Per child EUR 10
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Shipment costs for unaccompanied
luggage - outward and homeward
relocation
Based on vouched expenses (invoice) and three quotations:
• for the development worker, accompanying spouse and children from the age of
13: 100 kg each
• for children up to the age of 12: 50 kg each
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10 min.
for
questions
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Rent allowance in country of assignment
• If the project partner does not make accommodation available, the development worker will generally find his/her own rented accommodation.
• GIZ is required to provide advice and help the development worker find suitable accommodation.
• Rental expenses are reimbursed by the GIZ office in line with a rent index drawn up by GIZ for development workers.
• Supplements for accompanying family members:
for the first family member: + 30%
for each additional family member: + 10%
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Childcare, nursery and school costs
• Payable only if the development worker
is a single parent or if both spouses have
a development worker contract with GIZ
(alternatively development worker +
integrated expert)
• 92.5% of vouched expenses
• Max. EUR 300 per child per month
92.5% of the following costs are
reimbursable:
• nursery school fees from the age of one
• school fees, admission fees and
examination fees
• school bus (including local public
transport)
• distance learning school costs
Childcare costs for
children under the age of
14
Nursery school
and school costs
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• Unpaid supply trips (e.g. shopping, taking children to/from school, medical
appointments) may be made using your official vehicle if this arrangement is
approved by your program manager or the country director.
• Development workers are required to pay EUR 0.30 per kilometre for private
journeys made using an official vehicle. All private use of official cars must be
approved in advance by program manager, the country director or the GIZ office.
• If no permission is given to use an official car for unpaid supply trips, you will be
entitled to a monthly lump-sum, the mobility allowance instead: development
worker EUR 100; accompanying spouse EUR 20; per child EUR 10.
This allowance is paid together with your living allowance and is generally taxable.
Supply trips using an official
vehicle/Private journeys/Lump-sum
mobility allowance
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Cost of guard service
• In cases where the German Embassy
recommends engaging the services of
a guard
• In exceptional circumstances (e.g.
crisis situations) higher allowances may
be specified on a temporary basis.
• The scope of the guard service is
determined by the local GIZ office on
the basis of established local practice
and what is deemed reasonable; as a
general rule, development workers are
entitled to the same treatment as GIZ
field staff.
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Leave
Depature leave
On completion of preparation in Germany
Eight working days (= bank opening days).
Special leave
In case of the death or a life-threatening illness of a close family member: Two days
for travel and up to four working days (plus reimbursement of flight costs).
Annual leave
Two-and-a-half or three days per full month, i.e.
30 days for a five-day week
36 days for a six-day week
Additional leave in certain countries (as per field staff).
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Monthly leave allowance/Visits (flights)
by non-accompanying children
• The development worker and each accompanying
dependent family member (spouse/civil partner and
children) are entitled to a monthly leave allowance
of EUR 40.00 from the contractually stipulated date
of commencement of project service. As a general
rule, the leave allowance is taxable.
• Provided that you have completed 24 months with the project, GIZ will
reimburse the cost of a return economy-class flight for non-accompanying
dependent children to visit you once during the contract period in the country of
assignment.
(This entitlement does not apply in CTO countries.)
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Own income of family members
• Any income in excess of EUR 450 (net) is deducted from the
corresponding family supplement to the oversea bonus.
• For any period in which the oversea bonus of a particular family
member is not paid due to the amount of income of that family
member, then that family member is not entitled to:
reintegration allowance
leave allowance
free medical insurance.
No other allowances are affected (unless the entitlement is
covered by a third party).
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Resettlement allowance
The (tax-free) resettlement allowance is based on three levels
corresponding to the number of months of the DA´s contract
performed by the development worker. Qualifying months are all
project months completed with one of the development service
organisations recognised by the German Development Workers Act.
The monthly resettlement allowance is:
For development workers
Level 1: EUR 100 Level 2: EUR 200 Level 3: EUR 300
For accompanying spouses/civil partners
Level 1: EUR 42 Level 2: EUR 63 Level 3: EUR 84
Per accompanying child
Level 1: EUR 42 Level 2: EUR 63 Level 3: EUR 84
(Level 1: up to and including the 24th project month, level 2: from the
25th project month, level 3: from the 49th project month)
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10 min.
for
questions
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Social protection provisions
Details of social protection provision:
Group medical insurance policy (currently with EUROPA Versicherung AG)
Accident insurance policy with UVB (Unfallversicherung Bund und Bahn)
This policy provides additional medical cover and statutory accident insurance.
Long-term care insurance
Where applicable, cover is provided to allow for the suspension and subsequent
reinstatement of your medical and long-term care insurance on the same terms
(Anwartschaftsversicherung).
Pension scheme
Group accident insurance (only for accompanying family members)
Public liability insurance
Insurance for movable property (household effects and travel luggage)
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Social protection provisions
Group accident insurance
• Development workers generally submit claims for medical treatment directly to EUROPA.
• The GIZ office will pay the bill up front (repayable on settlement of claim) if the costs of treatment by a doctor/hospital are more than 20% of the family maintenance allowance (basic maintenance allowance plus foreign service premium).
• Expenses over and above the benefits covered by Europa can be claimed under the UVB policy.
• All dependent and accompanying family members are covered with EUROPA.
• GIZ recommends that you request a suspension (Anwartschaftsversicherung) for your existing medical and long-term care insurance policies.
• Important note: Although the medical insurance policy with EUROPA is classed as private medical cover, the benefits are limited (e.g. no optional benefits such as a private room or treatment by a doctor in private practice).
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Social protection provisions
Group accident insuranceGroup accident insurance
policy covering:
Death from
accidentInvalidity
Spouse/civil partner EUR 20,000 EUR 125,000
Children EUR 20,000 EUR 125,000
The 24-hour cover provided under the group accident insurance policy is
only available to the groups of people listed (N.B. accompanying persons
only).
However, development workers are covered by UVB’s statutory
accident insurance policy during working hours only. They are not
included in the above group accident insurance policy.
We therefore recommend that development workers obtain their own
additional private accident insurance policy with 24/7 cover for the duration
of the foreign assignment.
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Social protection provisions
Public liability insurance
• GIZ has purchased liability insurance on behalf
of development workers and their dependent
family members.
• The cover provided is in line with BMZ
conditions.
• The insurance cover is valid worldwide.
Personal injury and property damage Financial losses
EUR 3 million EUR 100,000
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Insurance of luggage and household items
• ‘Movable property’ insurance covers travel luggage and household effects.
Development workers can insure their movable property including their own
furniture. An application must be submitted to the Support for Development Workers
unit.
• GIZ recommends that you check your policy for completeness at the latest before
the return journey and submit a new application/obtain new insurance as required.
• Please note that there is a EUR 50 excess (deductible) for each case of damage.
Cover provided by GIZ Cost* Max. cover
Development worker up to EUR 3,400.00EUR
22.85/year
per EUR 1,000
sum insured
EUR 20,000.00Accompanying spouse/civil
partner up toEUR 3,400.00
Per accompanying child up
toEUR 1,000.00
* EUR 1,000 sum insured = EUR 22.85/year EUR 1.90/month
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Social
protection
provisions
Pension
contributions
• For development workers, the monthly notional earnings subject to mandatory contributions are at least 66.67% of the corresponding pension contribution assessment ceiling.
• In order to protect vested entitlements, an adjustment will be made if the development worker’s earnings that were subject to mandatory pension contributions were higher in his/her previous job in Germany.
• Contributions cannot be made to foreign pension plans.
• If you wish contributions to be made into a pension scheme for the liberal professions (berufsständisches Versorgungswerk), you must provide up-to-date confirmation from Deutsche Rentenversicherung that you have been released from the duty to make contributions for the duration of your assignment as a development worker.
Contribution
assessment
ceiling 2019
Assess
-ment
factor
Notional earnings
subject to compulsory
monthly contributions
Monthly
contribution
(GIZ pays
employer and
employee
contributions)
EUR 6,700.00 0.6667 EUR 4,466.89 EUR 830.80
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Entitlement to unemployment benefit
(Arbeitslosengeld I)• As a general rule, classification is based on ‘qualification groups’ (education/training level)
– not on your previous job (article 152 of the German Social Code, Book III).
• The notional figures shown below for gross monthly income from employment are only
applicable if your place of residence is in Germany. A distinction is made between the
federal states in the pre-unification Federal Republic (West) and those in the former GDR
(East).
• In order to qualify for unemployment benefit (Arbeitslosengeld I) in Germany, you must be
able to provide evidence of at least 12 months of contributions or development service out
of the last 24 months. Entitlement to Arbeitslosengeld I is limited to a certain period (based
on your past contributions or development service and possibly on your age).
Qualification group
Training level
Reference figureEUR 37,380 West
EUR 34,440 East
Assessment
West
Assessment
East
1.Degree from university or
university of applied sciences30/300 EUR 3,738.00 EUR 3,444.00
2. Technical school certificate
(Fachschule), master craftsman
(Meister) or comparable certificate
30/360 EUR 3,115.00 EUR 2,870.00
3. Completed apprenticeship in a
trade/occupation requiring training30/450 EUR 2,492.00 EUR 2,296.00
4. No formal qualifications 30/600 EUR 1,869.00 EUR 1,722.00
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10 min.
for
questions