Bulgaria GERB Cabinet Sacks 11% of State Servants

Finance Minister, Simeon Djankov (center) says the lack of common policy when institutions determine the bonuses for employees imposes the need of a new pay model. Photo by BGNES

The cabinet of the Citizens for European Development of Bulgaria (GERB) party had laid off nearly 11% of the State employees since its coming into power, Finance Minister, Simeon Djankov, reports.

The State Administration employs 440 000 people of them less than 90 000 in the Ministries, municipal and local offices. 61 170 work for the Interior Ministry and 7 850 for the Bulgarian Academy of Sciences (BAS). The latter are more than those at the National Revenue Agency, Djankov noted.

The only Ministry that had not yet dismissed employees is the Interior. The Defense Ministry began its reform on April 1 where 460 people will be sacked by May 25.

The State Administration reform also includes changes in the pay scale to be introduced in the 2011 State budget where 25% of the State servants' wages will depend directly on the employee's performance. 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 (the 75%) for all State institutions along with an increase of the minimum and maximum wages. The new pay scale excludes the Interior and Defense Ministries.

The additional pay or bonuses 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.

The bonus system now widely differs among institutions – 53% of the salaries of employees of the Commission for Competition Protection come from bonuses, this percentage is 55% at the Finance Ministry and 3% at the Employment Agency.

Bonuses in 2011 will be given to both all employees of a given institution over achieved results and to individual workers.

The constant salary will be determined by the use of a Dutch matrix scale with 5 -6 levels of pay, based on experience and work performance. In addition, the new scale will give opportunities to new employees for fast career advancement if they show good results. Professions that are in short supply at the State institutions will further receive wage supplements – lawyers, financial experts and doctors for example, to guarantee that Bulgaria's top experts do not work only for the private business.

The average State salary in 2009 is BGN 863 with the highest pay (BGN 1 170 average) received at ministries and State commissions and the lowest (BGN 693) at municipal administrations. Employees of the Interior and Defense Ministry made an average of BGN 959 a month in 2009.

The reform was discussed Tuesday during the regular meeting of the Council of Ministers.

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