Bulgaria Finance Minister Ties State Salaries with Performance

Finance Minister, Simeon Djankov (c), says that currently there isn't a common policy when institutions determine the bonuses for employees thus the need of a new pay model. Photo by BGNES

Bulgaria's Finance Ministry is preparing a new model for compensations for State servants where 25% of their wages will depend directly on the employee's performance.

The new pay scale will be introduced on January 1, 2011.

The other 75% of the salary will be based on the job duties and related responsibilities, the necessary expert skills, knowledge, and education.

The Ministry is further considering a 10% increase for the so-called “constant” salary (75%) for all State institutions along with an increase of the minimum and maximum wages.

The additional pay will be given only for concrete achieved results. Bonuses will be planned in the institution's budget and would no longer be given to an employee for collection of fines and fees, because this offers advantages to certain individuals at the State administration by hurting businesses, according to the Finance Ministry.

Finance Minister, Simeon Djankov, says that currently there isn't a common policy when institutions determine the bonuses for employees thus the need of the new pay model.