ICSC agrees on the changes it will recommend to the General Assembly for the compensation package
VIENNA, AUSTRIA. The International Civil Service Commission (ICSC) has agreed on the changes it will recommend to the General Assembly for the compensation package of internationally recruited staff in the Professional and higher categories. If the General Assembly agrees, the changes would take effect on 1 July 2027, with transitional arrangements for several elements.
The Commission met in Vienna from 14 to 24 July 2026 for its 102nd session. It took up the consensus package prepared by Working Group 1 in Geneva in May, closing a review that has run for several years. FICSA took part throughout, as one of the three staff federations represented in the process.
On the education grant, the tertiary years have been kept. "There was a risk of maybe discontinuing the tertiary education grant. We're happy to reach a consensus that has been maintained, but with the option that those years currently being used for tertiary education could be used also for early childhood education," said Imed Zaabar, FICSA President.
On mobility, the mobility incentive would be replaced by a new supplement, and staff already receiving the incentive would keep it until the end of their present assignment.
The session also took up the net remuneration margin, which governs how salaries in the Professional and higher categories are determined. The margin parameters were not revised.
"Taking the views of all parties into account, the Chairman of the ICSC, Mr Larbi Djacta convinced the Commission to conduct a study for the next two years until the session of July 2028. However, in the meantime, they decided to freeze the net remuneration in New York," Mr Zaabar said.
Because New York serves as the base for the system, such a freeze affects the purchasing power of staff globally.
FICSA had argued for the current margin to be maintained, so that organizations can continue to attract and retain staff. Mr Zaabar voiced disappointment at the freeze, saying that "freezing salaries during a period of high inflation would further erode the credibility and predictability of the compensation system." He added: "We think this would damage staff morale, undermine trust, and weaken organizations' ability to fulfil their mandates effectively."
The background to the review and the detail of each element follow below. FICSA's position on the outcome is set out after the recommendations.
Background information
At its ninety-fifth session, the International Civil Service Commission launched a comprehensive review of the compensation package for staff in the Professional and higher categories, in response to General Assembly resolutions 76/240 of 24 December 2021 and 77/256 A of 30 December 2022.
In 2023, the Commission presented to the General Assembly the scope, parameters, timeline and structure of the review. Three working groups were established to facilitate the process.
In its resolution 79/252 A-B, the Assembly welcomed the Commission's efforts to conduct the comprehensive review. It noted the importance of overall cost containment and sustainability, the agreed criteria of competitiveness and flexibility, and the broad objectives of effective mandate delivery, flexibility, attractiveness, coherence, transparency, cost-effectiveness, stability and predictability.
The three working groups were:
- Working Group 1: Conducted an overview of the current compensation package, focused on general perspectives related to the package, established a holistic approach to compensation as part of the HR Framework, and explored cross-cutting themes.
- Working Group 2: Reviewed dependency-related allowances, including the education grant.
- Working Group 3: Reviewed field-related entitlements.
At the last meeting of Working Group 1, held in Geneva, Switzerland, from 18 to 22 May 2026, the group reviewed outstanding issues relating to the comprehensive review of the common system compensation package and prepared a consensus package for consideration by the Commission.
Recommendations of the ICSC to the General Assembly
Following discussions at its 102nd session, held in Vienna from 14 to 24 July 2026, the Commission decided to recommend the following changes to the General Assembly. Subject to the transitional arrangements outlined below, the changes would be implemented from 1 July 2027.
FICSA's position
- Without prejudice to the overall cohesion of the common system, the review is intended to provide organizations with a degree of flexibility in applying the compensation package. Compensation must attract and retain the best combination of talent, competency and diversity. The revised system should also promote excellence and recognize performance.
- The review must focus on creating a coherent, inclusive and integrated system that is streamlined, transparent and cost-effective, without causing undue competition between duty stations or organizations. Allowances should be targeted to drive organizational excellence by fostering staff motivation and engagement. The revised system must enable Member States, organizations and staff to understand its structure, processes and outcomes clearly. It should also offer the stability and predictability needed for seamless integration with programming and budgeting processes.
- Due consideration must be given to the severe budgetary reductions implemented across 2025 and 2026. These measures - including proposed and approved personnel relocations, the abolition of posts and early-retirement programmes associated with the UN80 Initiative - have led to a substantial reduction in staff costs for 2026 compared with 2024. As confirmed by the HR Network, the downsizing of the United Nations system workforce in 2025 alone accounts for savings exceeding USD 1 billion. This does not include additional efficiency gains achieved through physical relocations or other operational optimization measures. Staff have remained committed to the mission, loyal to the Charter and dedicated to their organizations.
- Staff are also facing financial hardship. High inflation, workplace uncertainty, organizational change and workload are affecting both the cost and quality of living. Any further reductions in compensation will therefore not be accepted by FICSA's members.
- FICSA supports all consensus points out of respect for the valuable commitments, contributions and investments made by all parties involved, as well as the significant time and effort required to reach these conclusions.
- Although the Working Group agreed on the consensus package, the implications of each proposed change for staff and organizations must still be considered carefully. Fair and transparent transitional measures are critical.
