Salary systems in public administration and their reforms
Guidance for SIGMA partners
Public sector remuneration systems are shaped by an intricate interaction of administrative
culture, economic conditions, and political systems. This paper discusses critical
considerations to bear in mind when designing, planning and implementing reforms of
public service wage systems. It explores key concepts such as job evaluation, pay
structures, performance-related pay, market analysis for competitive pay levels and
wage bill planning. It provides guidance on the process of reforming public sector
salary systems to enhance their competitiveness, equity, transparency and affordability.
The paper offers insights drawn from the reform efforts of several EU Member States
and SIGMA partners in the Western Balkans, Moldova and Ukraine, presenting real-life
examples and updated guidelines for effective, sustainable salary system changes.
The primary focus is on reforms of wage systems within central government administrations,
acknowledging the complexity arising from diverse classifications of civil service
and public employees, and the varying scope and structure of salary systems. This
paper serves as a practical guide, presenting options along with their advantages
and disadvantages to aid policymakers in aligning reforms with their national public
administration context and strategies.
Available from June 20, 2024
In series:SIGMA Papersview more titles