“People are key in achieving MSF’s social mission.”

IRP II

IRP II International

Remuneration Project II

©Jason Van Dyke

IRP stands for international remuneration project.

Remuneration in IRP II refers to pay and benefits

for MSF international staff working in the field.

We refer to IRP "II" to distinguish from IRP I

implemented in 2006-2007.

IRP II is not just an adaptation of IRP I. It is rather

a fresh look at our remuneration system in order

to meet current and future operational challenges,

such as the increased complexity of our

operations which requires committed international

staff to stay longer in MSF. In addition, and in

order to be fair and act as a single organisation,

we needed to harmonise benefits amongst OCs,

such as per diem, family package or return

tickets, whilst including all international staff

under the same remuneration model.

MSF considers it essential to invest in its people,

recognising what they bring to the organisation,

whilst staying true to our value of volunteerism.

Consequently, the new remuneration system

balances both MSF and staff needs. To achieve

this, in 2011, we undertook a survey of 2,800

colleagues and interviewed several key people in

the organisation as part of the baseline for this

project,.

Attract more specialist medical capability, competent coordinators and people whose primary motivation is humanitarian action;

Motivate key staff to commit on a long-term basis, coordinators to take on long-term assignments, people to increase their mobility

(deployment flexibility and career building) and to take on more responsibility;

Retain a core long-term-oriented workforce, critical competence and institutional knowledge, and, more generally, a culture of “volunteerism” in

MSF.

This needs to be achieved whilst treating international staff equitably across all groups.

A look back … What IRP II aims to achieve

Salary and benefits are only the tangible part of what MSF offers its staff. Much of the compensation is intangible: technical training, career opportunities, professional growth through continuous training and experience, meaningful work, etc.

Remuneration based on principles

The core principles of MSF remuneration system have not changed significantly.

Volunteerism ● Mutuality ● Equity ●

Coherence ● Being a responsible employer

Structured by the principles mentioned above, MSF remuneration policy is the basis for its practices. The elements of IRP II policy are:

Modesty ● Commitment ● Domicile ●

Responsibility ● Competency ● Indemnity

What is new in IRP II – An overview

Different types of contracts for different types of availability

Depending on the type of availability people embark on with MSF, segmentation is made as follows:

Intermissioners : for people who commit on a mission per mission basis.

They are and will remain an essential group allowing MSF to react with flexibility to fluctuating operational needs.

Long-term assignments : for people available for assignments of 12 months or longer.

MSF encourages longer-term assignments, especially for coordination positions. This strategically aims to reduce turnover in order to improve the stability of our missions.

Vocationers: for people available for 3 – 5 years at a stretch. MSF offers increased stability in exchange for long-term availability and full mobility.

The types of assignments offered are based on the operational need and are therefore at the discretion of the organisation.

Recognition of responsibility

Based on the “international field function grid”, salary grids have seven levels under IRP II. This has been calculated to acknowledge greater differentiation of levels of responsibility.

New salary modelThe hybrid pay system is a balance of a local based pay (domicile) and the global NGO market. This model reduces disparities in pay between different domicile countries.A guaranteed salary grid was added, intending to ensure fair pay by establishing a salary base for people with domicile in low income countries, such as Portugal, Kenya or India.

Recognition of experienceExperience in the same position is recognised. Each salary level has three spot rates within a total band of 20%. IRP I simply rewarded seniority.

Common benefits packageAll sections offer the same home and field benefits package. This includes for example per diem harmonisation amongst all missions in thesame country.

Current – IRP I New – IRP II

‘One size fits all approach’ Segmentation (intermissioners, long-term assignees, vocationers)

3 salary levels (A/B/C) 7 salary levels (more salary progression)

Grids for sections based on Home Based Pay. NCR*

based on (differing) OC grid

Grids based on hybrid of Home Based & Global Pay. NCR with own grid unless part of guaranteed salary

grid.

Progression through seniority Progression through experience and loyalty

Different field benefits per OC

Harmonised Field Benefits

The principle of “mutuality ” forms the basis for engagement between MSF and its people. It frames

what the organization aims to offer and what it expects from its staff.

MSF offers: meaningful medical humanitarian work; development and professional growth, as well as modest remuneration with a solid benefits package of a responsible employer.

MSF is looking for: people committed to its social mission, with personal qualities to support our approach and values and the willingness to be deployed internationally where needed; and

In exchange for more “predictability of deployment”, opportunities offered will be a product not only of organisational need and individual potential, but also personal interests and commitment.

*Non Contracting Country ResidentsNote: See more details of these elements on the next page.

The guaranteed salary grid was integrated into the pay model to limit the effect of the local pay line and to ensure that the salaries MSF offers to low income country residents remain equitable, given its concern for internal equity and consistency.

Recognising ExperienceIn order to allow salary progression in the same function, bringing added expertise to our operational work MSF wants to acknowledge the progress of individuals within the same job (experience).

For that, the previous work experience in the job – external and internal, yet valuing more the MSF experience – is calculated. There are three levels of pay related to the level of experience: entry, mid point and upper point.

LoyaltyLoyalty as international staff will be recognized and reflected in salaries.

The loyalty bonus, corresponds to a 2% increase per year applied to the entry point salary of an individual; this bonus will start calculating on day one of the implementation of IRP II, 1 July 2014. It is capped at 10 years to be in line with national staff policy.

Elements of the new salaries

Field function grid and salary levels

All field positions – from HoM to Watchman – are integrated in the international field function grid (IRFFG). Thus, the salary is defined in

accordance with the level of responsibility of the position.

The function grid is the basis for all salary grids, which also ensures consistency between national and international staff grids. For international

staff, the amounts in the salary grids will vary depending on country of domicile.

Function levels relevant for international field staff

range from 5 to 15 and are organised in a salary grid with 7 salary levels.

Indemnity

The concept of indemnity will be maintained as it is presently. When joining MSF, all international staff will be on the indemnity for the first 12

months of field work with MSF. The indemnity represents 80% of the salary level 1.

New salary grids

The base of the new salary grids comprises two parts: one part of the salary is based on a comparison with reference salaries in the country of domicile (local) and the other part is defined by

comparing the salaries with the international NGOs ones (global).

The weight of global and local part of the salaries differs depending on the job position in the IRFFG.

Entry point

Upper point

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Salary band20%

Mid point

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“We have staff from around 138 different countries, meaning we are a very diverse organisation; however, this diversity meant that IRP I was failing to apply the same principles of remuneration across the entire movement.”

Nick Lawson, Director of Field Human Resources at

MSF USA

© Yann Libessart

Home-based benefits

What has not changed?

• Medical Coverage

• Short-term and Long-term disability pension Death – all causes

• Accidental death (AD&D)

• Retirement benefit: in the form of contribution to national retirement systems; to private pension schemes; or the equivalent cash payment.

• Maternity leave

• Public leave days

• Paid leave (holidays)

• Luggage cover

• Additional luggage (for long-term assignments)

What is new?

• Extra paid leave for vocationers and long-termassignments. This is to allow them to sustain a field work rhythm for a prolonged period of time, as well as to enable them to maintain a connection to their home society.

• Home child allowance is a monthly amount paid out for dependent children who remain in the country of domicile. It is provided systematically to employees on a vocationercontract, and in exceptional cases to staff taking certain long-term assignments.

It corresponds to 15% of the (gross) indemnity value for the employee salary grid. It is capped at 3 children.

Note: the type of assignments offer are stated by operational needs.

Harmonised field benefits

Per diem

Under IRP II per diem amounts are harmonised by country; regardless of the OC a staff member is working for, the per diem is the same.

The per diem is a contribution to additional living costs in the country of mission.

Family benefits

• Field family allowance : per diem is paid for employees only and their accompanying children (capped at 50% of the per diem value).

Partners will cease to receive a per diem.

• Individual housing will continue to be granted for families. Under IRP II individual housing is also provided for single coordinators if they go on assignment for a period equal to or longer than 24 months. This is subject to the context and OCsapproval.

• Contribution for school fees: for children in kindergarten (up to 2300€ child/year); for children in primary or secondary school (up to 18 years of age) MSF contributes 80% of the school fees above 2300€ child/year with a total cap of 8000€ per child/per year.

• Child care : MSF does not cover costs related to child care in the field.

• Other items accompanying dependents are covered under the same insurance package as the international staff (except for disability pension). Administrative costs such as visa costs, translation and legalising official documents, etc are also covered.

IRP II Benefits package

“The discrepancy between the different operational centers is so controversial at times that volunteers receive different per diem for similar expenses living in the same compound …I think harmonizing these aspects is basic and also quite fair ...”

Abiy Tamrat, President of MSF-CH,

© Yann Libessart

Overall, the design of IRP II will improve pay and

benefits on a global level, as well as increase

coherence and equity in treatment. As current

practices in each MSF section vary sometimes

significantly, the changes will depend on factors

such as the country of domicile, the function and

the previous experience of the international staff.

The implementation strategy takes into account

the different starting points before IRP II and

includes complementary measures in case

impact is not favourable.

Implementation schemeIRP II implementation strategy will follow an “all at

once“ approach. This means that all MSF

sections will execute IRP II at the same time, on 1

July 2014.

Running contracts on 1 July 2014

Salaries and benefits transferred to IRP II on 1

July 2014.

In the event that the transition to IRP II will result

in a salary increase, then the increase will be

applied directly on 1 July 2014.

For running contracts where the transition to IRP II would result in a salary decrease, the salary will be guaranteed until the end date of the contract.

IRP II benefits package will be applied startingfrom 1 July 2014, for new contracts and running contracts (unless there are contractual limitations).

New contracts signed after

implementation date

New contracts starting from 1 July 2014 will have

the complete IRP II package applied (pay and

benefits).

(see exceptions in the complementary measures)

Per diem implementation

From 1 July the harmonisation of per diems

among OCs missions in the same countries

comes into effect.

Due the fact that the amount of per diem paid has

become too high in some countries in relation to

national staff salaries, MSF wants to limit it. Thus,

in general, per diem food basket will include less

items. Amounts are broadly lower than current

ones but neither for all OCs, nor for all mission

countries. As a result, complementary measures

are considered.

Implementation

Increases

Decreases

Apply directly

mantained until the end of the

contract

Complementary measures =

© Yann Libessart

Per diem extreme decreases – or increases –will be mitigated. Changes are only to be applied within a 15% margin up and down.

There will be annual reviews for per diem values, in which this maximum change (+/-15%) will continue to be the rule until target amount has

been reached.

Staff on contract on 1 July 2014 will have their current family benefits guaranteed until the end of their contract, including:� Per diem for partner� School fees� Child care costs

Complementary measures for new contracts

Coordinators: Intending to retain coordinators,

their last earned salaries will be preserved in those exceptional cases where they would decrease.

Thus, coordinators (all capital management team and project coordinators as well as deputy coordinators, project medical referents and hospital directors) will have their salaries kept for

any future assignment provided that:

� Their last assignment under IRP I was in a coordinator position and they return to the field in

a coordinator function equal to or higher than their last IRP I assignment

• The break in service (interruption between two

missions) does not exceed 12 months out of the field or 24 months working in HQ or as national staff.

Under these conditions, if the person’s salary would decrease in the IRP II system, the last earned IRP I salary will be applied to further

contracts until the IRP II salary exceeds it.

This means the salary is frozen at the last earned IRP I level salary.

Non Contracting Country Residents

Aiming to lessen the impact, for those potentially most affected by IRP II, further measures were considered. NCRs for whom the transition to

IRP II would result in a salary decrease will have their last earned salary preserved for the duration of the new assignment, provided that:

� Their last mission ended less than 12 months before 1 July 2014.

� They leave to the field between 1 July 2014 and 30 June 2015.

Further contracts or extension to an existing contract issued on or after 1 July 2015 will no longer benefit from complementary measures.

Complementary implementation measures

FieldCo, Spanish resident, working for any OC:1996 €/ month

FieldCo, Swiss resident , working for any OC:2812 €/ month

FieldCo, resident, at a non contracting country as Brazil, South Africa, Kenya, etc - working for:OCA: 1879 €/ month (w/o the field contribution)OCB: 2273 €/ monthOCG: 2812 €/ month (w/o pension contribution for non Swiss)

OCP: 2090 €/ monthOCBA: 1996 €/ month

How we remunerate today:IRP I

How we will remunerate tomorrow? IRP II

FieldCo, resident in Brazil, working for any OC:1938 €/ month (under guaranteed salary grid)

FieldCo, resident in SA, working for any OC:2043 €/ month

FieldCo, Swiss resident, working for any OC: 3100 €/ month

FieldCo, Spanish resident, working for any OC:2146 €/ month

FieldCo, resident in Kenya working for any OC:1938 €/ month (under guaranteed salary grid)

Legend: all figures are from 2014 - all gross amounts - IRP I figures incl. 5 years of seniority - IRP II figures at entry point of level 13

The key factors that distinguish international staff are their “mobility”, the independence and global (multi-context) perspective they bring to the team’s work in the field. Rewards need to facilitate the ability to mobilise people to the right places and at the right moment.

@IRP II International Benefits Package Guideline

IRP II

“People are key in achieving MSF’s social mission.”

Contacts

OCA: Amsterdam.MSF-IRP2@amsterdam.msf.org

OCB: Berangere.ADAMANTIDIS@brussels.msf.org

OCBA: MSFE-IRP2@Barcelona.msf.org

OCG: MSFCH-IRP2@geneva.msf.org

OCP: Msf-IRP2-paris@paris.msf.org

© Yann Libessart

April 2014