© OECD A joint initiative of the OECD and the European Union, principally financed by the EU. Civil Service Salary System and Recent Reform Trends in Germany.

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© OECD A joint initiative of the OECD and the European Union, principally financed by the EU. Civil Service Salary System and Recent Reform Trends in Germany Workshop on Remuneration Systems for Civil Servants and Salary Reform Vilnius, 14 December 2006

Vilnius, December 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 serviceentry level A 6  Career path higher intermedia serviceentry level A 9  Career path higher serviceentry 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 Federal Remuneration Scheme A (Euro/month; valid as per 1 August 2004 )

Vilnius, December Federal Remuneration Scheme B Euro/month; valid as per 1 August 2004

Vilnius, December Three Examples of Federal Ministries

Vilnius, December Federal Ministry of Education and Research

Vilnius, December Federal Minister Parliament.St. Sec.(MP) State Secretary Director General (central tasks) Director Head of Division Director General Director Head of Division Director Head of Division Head of Divison Head of Division Director General Director Head of Division Director Head of Division Advisor Officer  Minister/ Public official  Head of the administration  Borderline (political appointees)  Civil servants for life tenure The Federal Ministry: meets/supports government functions

Vilnius, December Federal Chancellery

Vilnius, December Federal President‘s Office

Vilnius, December 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 PRP Reform 2005 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 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 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,

Vilnius, December

Current and new systems in comparison

Vilnius, December Example Ministry of Health

Vilnius, December

Example Federal Ministry of Finance

Vilnius, December

Example Federal Ministry of Justice

Vilnius, December