Government pay systems

Principles of pay

The key issue in any job is that of pay. For the government as an employer, pay accounts for the bulk of labour costs and for a large share of all operating expenses. Pay policy is an instrument applied for effective management, using remuneration to promote performance throughout government organisations and to ensure that government is a competitive employer for employing and retaining competent staff.  

Monthly pay in the government pay schemes is determined mainly on the basis of the complexity of the job and individual job performance. This together with adjustments in pay when confronted with changes creates a stimulating, competitive and fair basis of remuneration.

Pay systems for each government agency

The government pay systems are specific to each government agency but have been designed on uniform common principles. Each pay scheme builds on sector-specific agreements contracted for government employees. In the schemes, pay consists of a job-specific pay component based on the complexity of the job and an individual pay component based on the performance and competence of the employee. The job-specific pay component can range between 10 and 20 scales depending on the pay system applied in each government agency while the individual pay component can account for a maximum of 50% of the job-specific pay component depending on the system and it is classified into around 5 to 15 performance levels.

Each government agency applies its own appraisal system to evaluate job complexity and personal performance. Job complexity is typically determined on the basis of the required level of occupational knowledge and skills, the degree of interaction and amount of responsibility. Job performance is generally assessed according to professional competence, degree of productivity and collaboration skills. Each employee’s job complexity and personal job performance is reviewed in performance and development meetings between employee and supervisor once a year.

Rewarding remuneration

Both main components in the government pay systems – the job-specific pay component and the individual pay component – are designed to be rewarding. The system encourages staff to seek more demanding tasks and to improve performance and competence. The system also calls for good managerial skills and leadership. The system is applied with a view to meeting the demands set by efficient activities, taking into account variation in job complexity caused by a changing operating environment and better performance created through higher competence.

Separate performance bonuses that are settled and disbursed on an annual basis are in use in approximately 25 government organisations. The aim is to spread the use of these bonuses on a wider scale.

Other pay systems

A handful of government organisations use different agency-specific pay schemes. A few government pay systems include a pay component based on years of experience in government service. In some cases individually tailored euro-denominated remuneration is applied. Furthermore, guidelines for emoluments for senior management in the ministries and government agencies are separately set out at government level, with salaries including components for special conditions and premium pay. In short, the new government pay systems have replaced earlier systems based on pay grading categories and other schemes.

Pay scales

The Office for the Government as Employer no longer publishes pay scales in collective form. Information on the pay scales in use is available in the government organisations.

 

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