John Dalli could potentially receive up to €500,000 from the European Commission over the next three years for resettlement purposes after having served as Commissioner responsible for Health since 2010.

Mr Dalli resigned this week following the allegations of fraud made by OLAF, the European Anti-Fraud Office. Mr Dalli, who has denied any wrongdoing and vowed to clear his name, said that he was forced to resign by EU Commission President, Jose Manuel Barroso.

The ‘resettlement allowance’ for European Commissioners entitles Mr Dalli to a one month salary as soon as he leaves and a transitional allowance for three years. This amount varies between 40 and 65 per cent of Mr Dalli’s last basic salary and depends on the number of years he served as Commissioner, in this case since 2010.

According to the information available, the basic salary for European Commissioners amounts to around €20,666 per month, or 12.5 per cent more than the highest paid civil servant in the European Union. The five vice-presidents earn 25 per cent more than the top civil servant, amounting to a basic monthly salary of €22,963. The President receives 38 per cent more, earning €25,351 per month.

European Commissioners’ salaries are not taxed at their member states and instead they pay a low tax to the European Union.

Commissioners are also entitled to a monthly residence allowance, which is computed by 15 per cent of their salaries, a family allowance and entertainment allowance. Once Commissioners starts in office, they receive the equivalent of two months extra pay.

Commissioners also receive a pension upon reaching retirement age of 65 years. The pension is computed at 4.275 per cent of their basic salary for each year they served as Commissioners.