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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.

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Presentation on theme: "© 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."— Presentation transcript:

1 © 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

2 Bucharest, 25 April 2007 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.  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  Service classes depend on formal preconditions like necessary training and educational qualifications  Promotion in accordance with aptitude, qualifications and professional achievements (principle of merit)  Pay according to rank rather than specific function

3 Bucharest, 25 April 2007 Federal Remuneration Scheme A (Euro/month; valid as per 1 August 2004 )

4 Bucharest, 25 April 2007 Federal Remuneration Scheme B Euro/month; valid as per 1 August 2004

5 Bucharest, 25 April 2007 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

6 Bucharest, 25 April 2007 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

7 Bucharest, 25 April 2007 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

8 Bucharest, 25 April 2007 Example Federal Ministry of Justice

9 Bucharest, 25 April 2007

10 Example Federal Chancellery

11 Bucharest, 25 April 2007

12 Example Federal President‘s Office

13 Bucharest, 25 April 2007

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

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