ANNEX II - UNOPS

a) For ICs: The fee takes into consideration the hazardous conditions at the duty station (see
paragraph 11.2.2 c) above), therefore Hazard Allowance as described below does not apply;
b) For LCs: A Hazard Allowance applies and shall be paid in addition to the established fees.
11.5.2 LCs are eligible to receive the Hazard Allowance only for the days they are required to work and
actually do so.
11.5.3 The Hazard Allowance equals to twenty-five (25) per cent of the net mid-point of the applicable
remuneration scale (UNDP Service Contract Salary Scale or UNOPS LC Fee Scale, whichever is
used to set the fee in the specific case). To establish the daily rate of the Hazard Allowance for LCs
the following shall be used:
(i) add the total monthly net remuneration at the lowest level/step and the total monthly net
remuneration at highest level/step (not including long-service step, if any) of the local
remuneration scale to get a value “A”;
(ii) divide “A” by 2 to get value “B”;
(iii) multiply “B” by 0.25 to get value “C”;
(iv) to arrive at the daily Hazard Allowance rate, divide “C” by the average number of working days
in a month (see 6.1.3 for average number of working days in a month).
11.5.4 Whenever there is a change in the local remuneration scale, the Hazard Allowance shall be
recalculated. The effective date of the new rate is the same effective date of the revised remuneration
scale.
11.5.6 Hazard Allowance shall not be considered part of the Contractor’s fee, and shall therefore be
included in the respective Call-Off Contract as a separate “reimbursable expenses” line providing a
cap amount that shall be set as best estimate calculated in line with the provisions of paragraph
11.5.3.
11.5.6 Contractor’s CEC shall have a provision for payment of Hazard Allowance, but shall not specify any
amount. Payment of Hazard Allowance, calculated in accordance with paragraph 11.5.3 shall be
made separately from Contractor’s fee as per the provisions of paragraph 11.5.2.
11.6 Adjusting the Fee
11.6.1 Once a Contractor’s fee has been set it remains unchanged throughout the entire contracted period,
including any amendments. To avoid needing multiple competitive selection processes for the same
job, initial “probationary” contracts at lower fees shall not be used.
11.6.2 Notwithstanding the previous paragraph, an adjustment or change in the fee is possible in a few
specific circumstances when certain conditions have been met (any such adjustment will require a
prior amendment to the respective Call-Off Contract under the Agreement).
(i) Inflationary increases, when justified, will be allowed in conjunction with contract extensions
after one (1) year at the same fee rate. Comparators to be used for determining the inflationary
increase shall include, but will not be limited to: ICSC salary scales and published inflation
rates.
(ii) For LCs, adjustment of the fee will be permitted in conjunction with local pay scale updates
whereby the Contractor remains at the same level, but will be remunerated according to the new
pay for that same level. Such adjustment shall normally take place only once per year. The
local pay scale can be local UNDP Service Contract Salary Scale, the LC Fee Range, or any
other salary scales upon which basis the fee for the IC was initially determined. Such
adjustment is permitted in all cases where required to harmonize local fees within a specific
duty station or project.
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