July 07, 2024

Applying the Law on Wages in Practice – What You Need to Know

The Law on Salaries in the Civil Service and Public Services (hereinafter: the Salary Act) was adopted and published in the “Official Gazette” no. 155/2023, and entered into force on 1 January 2024. This Act regulates the system of salaries for civil servants, including the principles of the salary system, job evaluation, evaluation of work efficiency, salary and salary supplements, pay scale and pay grades, promotion in salary based on the assessment of work efficiency, remuneration for achieved work results and supervision of the implementation of the Act.

1. The principle of equal pay

One of the fundamental principles introduced by this Act is the principle of equal pay, according to which all civil servants and employees have the right to equal pay for equal work or work of equal value. This principle also includes the obligation that women and men who perform equal work are paid equally, which contributes to gender equality in state and public services.

2. Pay transparency

The Salary Act also introduces the principle of salary transparency. Data on the elements for the calculation of salaries for positions in the civil service must be publicly published on the website of the state administration body in charge of civil service relations. In this way, transparency in payroll is ensured and allows all employees to have an insight into the way their salaries are calculated.

3. Job evaluation

According to the Act, jobs in the civil service and public services are evaluated by applying standard criteria for the evaluation and classification of jobs. These criteria include the required level of formal education, required work experience, job complexity, responsibility, collaboration and communication, and management. On the basis of these criteria, the coefficients for the calculation of salaries are determined, which allows for fairer and more transparent wage determination.

4. Evaluation of work efficiency

The law introduces a system of annual evaluation of the efficiency of the work of civil servants and employees. Work efficiency ratings are divided into excellent, particularly successful, successful, satisfactory and unsatisfactory. Depending on the rating, employees may be eligible for a pay supplement for work efficiency, which encourages motivation and rewards exceptional work performance.

5. Pay scales and pay grades

The Act prescribes a uniform salary scale consisting of 16 salary grades with salary calculation coefficients ranging from 1.00 to 8.00. Civil servants and employees are classified into salary grades based on job evaluation, which ensures fairness and consistency in determining salaries within the civil and public service.

Conclusion

The Salary Act brings a number of significant changes and improvements in the salary system for civil servants and public servants. Its application in practice should ensure transparency, equality and fairness in the determination and payment of salaries, which further encourages the efficiency and satisfaction of employees in the civil and public service.

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