Installation allowance

Installation allowance

The Installation allowance is paid to European Commission and other EU institutions staff that have to set up their life in a different country. This article provides information about the amount of the installation allowance and under what conditions it is paid out.

The Installation allowance is a one-time payment to all expat staff of EU institutions. There are other one-time and regular allowances that make settling in a new city easier such as Daily Subsistence Allowance, Expatriation allowance, Removal expense coverage, and Household allowance.

Amount

As for some other European Commission allowances, for the Installation allowance it matters whether you are single or have a spouse or/and children.

  • One month’s basic salary is paid to staff members who are moving alone. The minimum amount is EUR 749,49.
  • Two months’ basic salary is paid to staff who move with their spouse or/and dependent children. The minimum amount is EUR 1260,50. You get this higher allowance amount only if your family settles in the same country within one year of the end of your probationary period.

The amount of the Installation allowance further depends on the length of your initial contract. This mostly applies to contract agents, whose initial contract usually is 3 years, but might be shorter due to, for example, temporary nature of the post, link to a project cycle, etc. You will get:

  • One third of the above amount if the foreseeable period of service (initial contract duration) is not less than one year but less than two years.
  • Two thirds of the above amount if the foreseeable period of service is not less than two years but less than three years.
  • Three thirds if the foreseeable period of service is three or more years.

Furthermore, the Correction coefficient is applied to the final amount you will receive.

Complicated? I’ll try to do my best to prepare a visual so that you can arrive at a precise calculation. In the meantime, if something is not clear, write a comment below.

Conditions

You become entitled to the Installation allowance once you pass your probation period and stop receiving the Daily Subsistence Allowance.

The Installation allowance is not legally linked to you having physically moved your belongings to the country of employment. You just have to prove that you have taken up residence in the particular country by, for example, providing your institution’s HR department with a rental agreement or a deed of property purchase. The HR department might require that you provide additional proof that you have “established residence” in the particular country.

If you had a 3+ year contract, but left your institution before the end of the contract, you will be obliged to repay part of the Installation allowance. Usually this is simply deducted from the final salary or the Unemployment allowance if you are entitled to it.

This article is based on the European Commission Staff Regulations and other publicly available information such as EU institutions’ vacancy announcements.

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4 responses to “Installation allowance”

  1. What if I moved together with my family on the first day of my contract? If I apply for the installation allowance after I pass my probation and all the documents indicate residency since today one, would I need to repay daily subsistence allowance? Best, Barbara

    • Most people move with their families in the first 3 monts of employment if not right away from the start. You would not be an exception.
      However, you run the risk of not passing the probationary period (happens very very rarely) and might loose such things as deposit for your appartment.

      If you move with your family and register as residents / get the Ministry of Foreign Affairs diplomatic/semi-diplomatic status, you will still receive the DSA for the full term (4 or 10 months).
      I’ve done this myself on all occasions, it creates no problems with the DSA.

      Just don’t make the mistake or formally relocating your staff and asking your institution to reimburse expenses before months 9 of employment. What most people do is relocate the bare minimum (by car or otherwise), buy cheap furniture etc. locally and then move all belongings once the probation period is passed / DSA payment stops.

  2. Hello. One question.
    I am working as a contract agent since a couple of years (initial duration of the contract was one year but it got renewed a couple of times).
    I have just realized that I might have not received this allowance after my probation period. Is that possible? How should I behave?

    Best,

    Gianni

  3. Hi,

    Is it a net salary? Are these amounts also taxed + (sickness, accident, solidarity levy, unemplyment, pension rights)?

    Thanks.

    Best,
    Ika

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