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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 Workshop on Remuneration Systems for Civil Servants and Salary Reform Vilnius, 14 December 2006

2 Vilnius, December 14 2006 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

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

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

5 Vilnius, December 14 2006 Three Examples of Federal Ministries

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

7 Vilnius, December 14 2006 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 Vilnius, December 14 2006 Federal Chancellery

9 Vilnius, December 14 2006 Federal President‘s Office

10 Vilnius, December 14 2006 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

11 Vilnius, December 14 2006 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

12 Vilnius, December 14 2006 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

13 Vilnius, December 14 2006

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20 Current and new systems in comparison

21 Vilnius, December 14 2006 Example Ministry of Health

22 Vilnius, December 14 2006

23 Example Federal Ministry of Finance

24 Vilnius, December 14 2006

25 Example Federal Ministry of Justice

26 Vilnius, December 14 2006

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