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Civil Service Salary System and Recent Reform Trends

Civil Service Salary System and Recent Reform Trends. in Germany. Workshop on Remuneration Systems for Civil Servants and Salary Reform Vilnius, 14 December 2006. Background. 1.6 mil. civil servants, 130,000 at federal level

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Civil Service Salary System and Recent Reform Trends

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  1. Civil Service Salary Systemand Recent Reform Trends in Germany Workshop on Remuneration Systems for Civil Servants and Salary Reform Vilnius, 14 December 2006

  2. Background • 1.6 mil. civil servants, 130,000 at federal level • Amid interaction of political forces, civil service is supposed to guarantee a stable, non-partisan administration bound by law and oriented solely on the common good. • Service classes depend on formal preconditions like necessary training and educational qualifications • Rank plus seniority determines pay level within four service levels • Career path ordinary service entry level A 2 • Career path intermediate service entry level A 6 • Career path higher intermedia service entry level A 9 • Career path higher service entry level A 13 • Promotion in accordance with aptitude, qualifications and professional achievements (principle of merit) • Pay according to rank rather than specific function Vilnius, December 14 2006

  3. Federal Remuneration Scheme A(Euro/month; valid as per 1 August 2004) Vilnius, December 14 2006

  4. Federal Remuneration Scheme BEuro/month; valid as per 1 August 2004 Vilnius, December 14 2006

  5. Three Examples of Federal Ministries Vilnius, December 14 2006

  6. Federal Ministry of Education and Research Vilnius, December 14 2006

  7. The Federal Ministry: meets/supports government functions • Minister/ Public official • Head of the administration • Borderline (political appointees) ----------------------------------------- • Civil servants for life tenure Vilnius, December 14 2006

  8. Federal Chancellery Vilnius, December 14 2006

  9. Federal President‘s Office Vilnius, December 14 2006

  10. Performance Related Pay (PRP) Instruments • Performance step = early or delayed advancement to next step = +/- € 500 – 3,600 annually. • Performance allowance = 7% of starting base salary as monthly allowance for a max. of one year = € 1,200 – 3,600 • Performance bonus max. one month’s starting basic salary = € 1,500 – 4,300 • Quota: max. 15% of all civil servants paid according to table A; if no performance allowances awarded, then max. 30% • Bonus works best in practice Vilnius, December 14 2006

  11. Performance variable added to basic salary based on individual performance dependent on annual performance evaluation not given for “merely” adequate performance Step 1 for satisfactory performance Step 2 for very satisfactory performance Step 3 for above-average performance Step 4 for outstanding performance PRP Reform 2005 Base salary • based on rank • broken down into 25 pay grades • rises in three steps after 5, 10 and 20 years of professional experience • recognizes adequate performance Vilnius, December 14 2006

  12. A salary and career system in the public service should be • simple (easy to handle) • transparent (clear regulations) • balanced (between a certain flexibiltiy and protection against biased influence) • Contact: Dr. Kai-Andreas Otto, ottoxx@gmx.de Vilnius, December 14 2006

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  20. Current and new systems in comparison Vilnius, December 14 2006

  21. Example Ministry of Health Vilnius, December 14 2006

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  23. Example Federal Ministry of Finance Vilnius, December 14 2006

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  25. Example Federal Ministry of Justice Vilnius, December 14 2006

  26. Vilnius, December 14 2006

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