Cabinet Approves Performance-based Pay for Bulgarian State Servants

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

Bulgaria's cabinet approved Wednesday the proposed changes in the pay scale 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 changes will be introduced in the 2011 State budget. The new pay scale excludes the Interior and Defense Ministries where it will be introduced in 2012.

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 from the State administration by hurting businesses, according to Finance Minister, Simeon Djankov.

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 while employees of the Interior and Defense Ministries do not receive bonuses.

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.

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