Why we need a revised Pay Policy

Currently, there is no common approach to pay across MSF entities and staff groups.

Entities within MSF use different salary scales, resulting in inconsistencies and financial disincentives for progress. This hampers joint operational initiatives, creates internal competition, and poses challenges for retention and internal mobility. Additionally, in some contexts, there are concerns regarding the adequacy of salaries at the lower end of the scale to cover everyday living costs.

To address these challenges, MSF has decided to develop minimum standards for pay that will promote consistency across different staff groups. These standards will be in line with the organisation's principles and values, take into account local norms, and establish a clear baseline for what MSF want to provide as a responsible employer.

The Rewards Review team was tasked by the Full ExCom to prioritize two key aspects of this initiative: "enhancing the attractiveness of pay for senior Locally Hired Staff" and "ensuring an adequate living wage".

This will result in a shared pay policy that will include:

• A minimum standard for pay at lower levels, building upon MSF's existing Living Wage methodology.
• Reference markets and benchmarking levels to determine how MSF's pay compares to similar organizations. Where necessary, this will include differences based on organisational priorities to ensure attractiveness for senior staff in strategic locations. Additionally, guidance will be provided for developing pay structures to ensure consistency in pay differentiation.
• A benchmarking approach that informs the pay policy, as consistent data is crucial for achieving pay consistency. This will also include the capacity to review and update salaries more promptly.

The objectives of the proposed new global pay policy are:

• To improve the current Living Wage practice to reflect MSF's agreed-upon responsibility, role, and limitations, considering the diversity of contexts in which MSF operates.
• To create consistency in how MSF benchmarks salaries compared to other employers and in the differentiation of pay internally through pay structures.
• To provide transparency regarding the reasons and locations for pay differences, including to attract senior staff in agreed-upon strategic locations or to limit higher salaries.
• To support consistency in implementation through a standardized approach to benchmarking and the availability of consistent data.

Some details of Pay Policy

REMOVAL OF INDEMNITY PERIOD

As of October 2023 the "indemnity period" during which internationally mobile staff received a single lower 'indemnity' instead of a salary for their first 12 months, has been removed.  Now, mobile staff no longer receive an indemnity payment and are now paid on the salary level corresponding to their position and experience.  

LIVING WAGE

The review of the Living Wage methodology with the objective to improve consistency and improve lower levels of pay where necessary to reflect an agreed view of MSF’s responsibility, considering the diversity of contexts where MSF is present   

MSF’s proposed definition for living wage would be the full-time wage necessary to support the purchase of necessary goods and services to provide a healthy and comfortable standard of living for the staff member in modest surroundings. MSF uses this as a critical indicator to check and/or set starting pay during salary reviews.  

ATTRACTIVENESS FOR SENIOR LOCALLY HIRED STAFF

MSF will improve attractiveness of pay for locally hired staff in senior positions wherever that might be necessary at programme level, which involves the renewed definition of criteria for internal and external attractiveness where MSF salaries are not sufficiently attractive. This includes cost modelling of increasing up to the 75th percentile in identified contexts.