2021 Review of Staff Compensation for the World Bank Group and Awards Allocations - Executive Summary

Jul 19, 2026

This paper submits for Board approval the 2021 (FY22) structure adjustments for World Bank Group (WBG) Headquarters and Country Offices, together with FY22 budget allocations for the IBRD, IFC, and MIGA awards programs. It explains that the review follows the compensation methodology approved in 2018 and 2019, using projections for local public and private sectors. As FY22 is the final year of a three-year compensation cycle, comprehensive market surveys support adjustments, including in fragile and conflict-affected situations and other locations where special compensation measures apply.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages22

Reading Time55 min

Executive Summary

INTRODUCTION

A.I. Headquarters – Structure Adjustment

A.II. Country Offices – Structure Adjustment

A.III. FY22 Salary Increase Envelope

A.IV. Special Compensation Measures

A.V. Financial Implications

B.I. WBG Awards

B.II. Awards Budget Allocations

C. Summary of Recommendations

Annex A: 2021 (FY22) Structure Adjustments – Country Offices

Annex B: July 1, 2021 HQ Salary Scale

Annex C: Special Compensation Measures

Annex D: WBG Awards

Annex E: IFC Awards Methodology

Public Disclosure Authorized Disc losure Public Disclosure Authorized 2021 REVIEW OF STAFF COMPENSATION FOR THE WORLD BANK GROUP ANDAWARDS ALLOCATIONS February 23, 2021 Blank Page GLOSSARY | Bank Group or WBG | The World Bank Group (WBG) consists of the International Bank for Reconstruction and Development (IBRD or the Bank), International Finance Corporation (IFC), Multilateral Investment Guarantee Agency (MIGA), International Development Association (IDA), and International Center for the Settlement of Investment Disputes (ICSID) . | | --- | --- | | Board of Directors | The Executive Directors of IBRD, IDA, IFC and MIGA. | | Country Office (CO) Staff | For purposes of this paper, Country Office staff refers to locally (country office) -appointed staff in locations outside of HQ. | | FCS | Fragile and Conflict-affected Situations. | | HQ | Headquarters based in Washington, D.C. | | HQ Staff | HQ-appointed staff | | Merit Element | Its main objective is to reward performance and is funded by salary erosion. For HQ, the merit element is capped up to 1.5% per year, and for each CO it is set at 1.5% per year. | | Midpoint | The point in the World Bank Group’s salary ranges which aims to be aligned with the 75th percentile of compensation at comparable levels in the respective local labor markets. | | Performance<br>Management System | The Bank Group’s individual performance rating system based on staff contribution and performance (ranging from a rating of 1 for‘unsatisfactory’ performance up to a rating of 5 for ‘significantly exceeds expectations’) . | | Salary Erosion | Salary erosion is defined as the percentage decline in average WBG salaries over the course of the year. It arises largely from turnover and promotions (caused by inflows and outflows of staff, where more experienced staff leaving the organization or retiring staff are replaced by new recruits or newly promoted staff) . | | Salary Structure or Salary<br>Scale | The set of salary ranges established for various grade levels. At the World Bank Group, the salary structure or salary scale has 11 salary ranges from GA to GK. Each grade has a minimum and a maximum (called a salary range) and a midpoint. In some country offices, the scale starts with G1 grade. | | Structure Adjustment | The structure adjustment aligns the salary scales with the increases in labor market salary levels. This represents the increase resulting from aligning the midpoints to the new market values. | | --- | --- | Table of Contents Executive Summary .................................................................................................................................................7 INTRODUCTION .......................................................................................................................................................8 A.I. HEADQUARTERS – STRUCTURE ADJUSTMENT ...................................................................................................9 A.II. COUNTRY OFFICES – STRUCTURE ADJUSTMENT ...............................................................................................9 A.III. FY22 SALARY INCREASE ENVELOPE................................................................................................................10 A.IV. SPECIAL COMPENSATION MEASURES ...........................................................................................................10 A.V. FINANCIAL IMPLICATIONS..............................................................................................................................10 B.I. WBG AWARDS.................................................................................................................................................10 B.II. AWARDS BUDGET ALLOCATIONS....................................................................................................................11 C. SUMMARY OF RECOMMENDATIONS............................................

FAQs

What approvals and components does the 2021 (FY22) staff compensation review request from the Board?

It requests Board approval for (i) the 2021 (FY22) structure adjustments for WBG Headquarters and Country Offices and (ii) the FY22 budget allocations for the IBRD, IFC, and MIGA awards programs.

How was the 2021 (FY22) structure adjustment calculated under the established methodology?

Because FY22 is the third and last year of a three-year compensation cycle, the adjustments were generally calculated using salary movement projections for local public and private sectors, supported by comprehensive market surveys in designated locations.

In what situations were market surveys specifically emphasized during the FY22 review?

Market surveys were conducted for Country Offices in fragile and conflict-affected situations and for Country Offices where special compensation measures are applied or where a macroeconomic situation has severely deteriorated.

Jul 19, 2026

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