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Remuneration Reform

The issue of remuneration is a topical one. Salary is not only an important motivating factor, but also a source of existence. And not just for civil servants. However, the current remuneration system for government authorities is unfair and inefficient. This is stated by both domestic and international experts. Employees of government authorities at various levels know this from their own experience. Therefore, the remuneration system reform of the civil servants based on position classification is intended to eliminate injustice in remuneration, as according to modern international standards,  it should be based on the professionalism, efficiency, degree of responsibility and personal contribution of each employee. 

The main strategic and program documents in the area of remuneration reform are:

  • Public administration reform strategy and action plan for its implementation for 2022-2025;
  • the Concept of reforming the remuneration system of the civil servants and the action plan for its implementation.
  • Remuneration reform is a prerequisite for a qualitative transformation of the civil service system. 

On July 28, 2023, the Verkhovna Rada supported in the first reading the draft law on the reform of the remuneration of civil servants (№8222). 

The law is the cornerstone of building a clear and fair remuneration system for employees of government authorities. According to Nataliia Aliushyna, it provides for the introduction of remuneration based on the positions classification of using uniform approaches, which will promote transparency and predictability of salaries, as well as ensure the anti-corruption component  of the reform. 

Key changes proposed by the Law:

  • Introduction of remuneration based on the classification of civil service positions according to unified approaches;
  • clearly differentiate between fixed (70%) and variable (30%) salaries. Limitation of incentive payments. Bonuses and compensation for additional workload will depend on the personal contribution to the overall performance of the authority. 
  • transparency and predictability of salaries, which will ensure the anti-corruption component of the reform. This is envisaged by the OECD Recommendation for Ukraine under the Istanbul Anti-Corruption Action Plan.

The importance of reforming remuneration system:

  • The remuneration system of civil servants should be transparent, clear and fair;
  • Civil servants deserve a decent salary, as they have a lot of responsibility and a significant amount of work;
  • Financial motivation is important for attracting the best specialist;
  • Classification of civil servants positions is the first step of the reform. It involves the introduction of a systematic distribution of positions according to certain criteria. Such a division will help to increase transparency and clarity of the new model of the remuneration system, and will help to determine the level of remuneration in accordance with the amount of work performed, level of responsibility, complexity of functions, etc; 
  • Civil servants should be remunerated for real results. Efficiency, result orientation and integrity should become important attributes for determining the level of remuneration of civil servants.


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