Government Employees' Bonuses to be Cut by 300-400% - Minister Nemchinov
Date: 2023-11-04 Author: Dima Zakharov Categories: ECONOMY
Minister Nemchinov highlighted the existence of a significant wage discrepancy among public servants, particularly in the form of pseudo-bonuses and additional payments. These bonuses, often exceeding 50% of the base salary, were meant to be a means of equalizing wages in a competitive labor market, especially at the local level.
As part of the government's efforts to address this issue, the 2024 state budget proposal incorporates elements of a wage reform bill, including the classification of positions. Under this reform, all central executive authorities subject to the law must undergo a process of position classification, known as "grading." There are 27 job groups that correspond to various fields of activity, allowing for a more equitable salary structure.
Minister Nemchinov stressed the importance of ensuring that individuals with similar job responsibilities across different government bodies receive fair and equal compensation. The first step in this classification process will be establishing a new level for job salaries. According to the proposed reform, 70% of a civil servant's actual earnings should constitute their base salary, with the remaining 30% as statutory incentives, including seniority and performance-based bonuses.
The minister further noted that the reform would result in reductions in cases where unjustifiable or unlawful wage increases had occurred, potentially leading to 300-400% reductions in some areas. Conversely, those positions that were undervalued would see increases in their salaries. This comprehensive process aims to rectify the current wage disparity and establish transparency in government salaries.
Minister Nemchinov also emphasized the need for qualified personnel in the public sector, given that there are more than 200,000 government positions but only 165,000 filled. Efforts are underway to attract veterans and skilled individuals to serve in government roles. Initiatives like the Ministry of Veterans Affairs and training centers are working towards this long-term goal. Additionally, preparing a pool of potential employees for the occupied territories will be addressed, though the specific needs in this context remain under assessment.
As part of the government's efforts to address this issue, the 2024 state budget proposal incorporates elements of a wage reform bill, including the classification of positions. Under this reform, all central executive authorities subject to the law must undergo a process of position classification, known as "grading." There are 27 job groups that correspond to various fields of activity, allowing for a more equitable salary structure.
Minister Nemchinov stressed the importance of ensuring that individuals with similar job responsibilities across different government bodies receive fair and equal compensation. The first step in this classification process will be establishing a new level for job salaries. According to the proposed reform, 70% of a civil servant's actual earnings should constitute their base salary, with the remaining 30% as statutory incentives, including seniority and performance-based bonuses.
The minister further noted that the reform would result in reductions in cases where unjustifiable or unlawful wage increases had occurred, potentially leading to 300-400% reductions in some areas. Conversely, those positions that were undervalued would see increases in their salaries. This comprehensive process aims to rectify the current wage disparity and establish transparency in government salaries.
Minister Nemchinov also emphasized the need for qualified personnel in the public sector, given that there are more than 200,000 government positions but only 165,000 filled. Efforts are underway to attract veterans and skilled individuals to serve in government roles. Initiatives like the Ministry of Veterans Affairs and training centers are working towards this long-term goal. Additionally, preparing a pool of potential employees for the occupied territories will be addressed, though the specific needs in this context remain under assessment.
