Public Expenditure Tracking and Service Delivery Surveys
Public Pay Policy and Its Implications for the Budget Jordan Public Expenditure Review June 19, 2003 Amitabha Mukherjee Poverty Reduction and Economic Management Unit East Asia and Pacific Region, The World Bank Public Pay Policy and Its Implications for the Budget Some concepts Civil service compensation: international comparisons
Public pay policy issues Budget formulation, execution, monitoring: Processes and Instruments A. Some Concepts Civil Service Role & Size Based on answers to three basic questions: What role of the state
How organization, administration By or structure of the public whom civil service role, composition & size Civil Service Compensation Elements: Base
salary Allowances Pensions Other benefits Monetary Non-monetary Civil Service Compensation Concepts: Wage adequacy Average Central Govt. Wage as multiple of per capita
GDP Compression Ratios Transparency Monetization Competitiveness Fiscal sustainability Civil Service: Relating Positions To Compensation Job description Job evaluation Job families
Grading Classification of positions Pay policy Salary structure/grades/steps Budgetary Pay & Employment Objective To achieve a sustainable level of budgetary employment consistent with remuneration levels sufficient to attract and retain qualified personnel Budgetary Pay & Employment Linkage with: role and functions of the state streamlining of central government
affordability criteria fiscal and administrative relations between central and local governments legal framework for budgetary employment (benefits, severance payments, pension, etc) B. International Comparisons Why are Government Employment and Wages comparisons tricky? Lack of reliable and recent country data Differences in:
Methodology and classification Concept of the State Role and functions of different tiers of govt. Treatment of benefits and allowances Wages Caveats: Compensation may be understated (e.g. bonuses/allowances may not be captured) Manufacturing wages in particular, and private sector wages in general, are often understated for tax and social contribution purposes by employers and employees
Wages Average Central Government Wages (yearly, in local currency) Assessment of the Wage levels in relative terms Wage bill as % of GDP, O&M Exp. Private Sector Comparators Average Manufacturing Wage Average Financial Sector Wage
Average Private Sector Wage Wage Adequacy Average Central Govt. Wage as multiple of per capita GDP Compression Ratios Government Wages as percentage of GDP 12 10 8 6 4 2
0 Africa Asia ECA LAC MENA OECD Central Government Wages and salaries Overall Average Govt. Wages as Multiple of per capita GDP
4.5 4.3 4 3.5 3 2.5 2.5 2.2 2 1.5 2 1.2
1.1 1 0.5 0 Africa Asia ECA LAC MENA OECD
General Government Employment Employment in all government departments offices, organizations and other bodies which are agencies or instruments of the central or local authorities whether accounted for or financed in, ordinary or extraordinary budgets or extra-budgetary funds. They are not solely engaged in administration but also in defense and public order, in the promotion of economic growth and in the provision of education, health, cultural and social services. Source: International Standard of Industrial Classification of All Economic Activities (ISIC), Series M No. 4, Rev 3- 1990. General Government Employment Six categories within General Government Employment:
Armed forces Civilian central government Sub-national government Health sector Education sector Police Not included: casual/seasonal/temporary employees Employmen t
Public Sector Employment: State Owned Enterprises (where available) General Government Employment: Military Employment Central Government Employment Subnational Level Employment Education (primary & sec. school teachers)
Health (Doctors, Nurses, Midwives and Nurses Assts.) Police * (as an experiment) Expressed in nominal terms and as % of population, labor force, total employment Employmen t Trends in employment, especially those relating to health and education, need to be seen against: Fiscal situation necessitating measures such as taking employment off budget (e.g. Armenia/Kazakhstan) Progress on reform of intergovernmental finances (e.g.
Central Europe) Data accuracy a key issue in many countries Government Employment 10 9 8 7 6 5 4 3 2 1
0 Asia Central S ub-National LAC Education Health OECD Military C. Public Pay Policy Issues Civil Service
Compensation Policy: Issues Two common issues: Objective(s) of Pay Policy Are objective(s) clear? If multiple objectives, are they consistent? If not, how to reconcile? Pay Determination Mechanism including: Extent of Independence from Executive
Extent of Collective Bargaining If Any Civil Service Compensation Structure of Compensation Pay Policies Dispute Resolution Interaction between budget cycle and pay determination cycle Collective Bargaining
Level at which negotiations take place Status of collective agreements Participants in collective bargaining Unionization level Matters covered by collective bargaining Indexation Frequency of collective bargaining Structure of Pay
Basic rates Flexibility and relativities Pay progression Performance pay? Regional pay variations Extent of Decentralization and Its Effect(s) Pay Policies
Policy objectives and principles Public sector pay cost restraint Factors in adjusting pay Data sources Minimum wage issues Sector specific issues How much flexibility is appropriate???? Resolving Compensation Disputes No strike rules Typical conflict areas/themes Pay Determination
Systems Centralized collective bargaining esp. for federal/central civil servants Exceptions: New Zealand: Individual contracts France: Negotiation not official. No agreements in several years: pay was unilaterally set by Govt. Finland: (personal agreements for c. 1000 senior CS) Germany, Greece: CS status and pay set by law. D. Link With Budget Formulation, Execution
and Monitoring Pay Policy: Pressures & Impacts Fiscal Pressures: Size of wage bill Number of public sector employees Public Administration Structures
Human Resource Management Legal Framework Sector-specific issues, especially in health, education, police, armed forces All of these impact poverty reduction, service delivery and growth Impacts Impact of pay and employment policies: Governance and corruption problems Access to services (see slides) Under the table payments (see slides)
Poor quality of civil service Inefficiency Increases cost of service delivery Impacts: Example Contracting Out Health Care Services Need for careful design and implementation: Financing arrangements Reporting and monitoring
Timeliness of reimbursement Realism of cost recovery arrangements Preventing build-up of arrears Increase in bribe levels and frequency No change in staffing levels and staffing mix Impact on health statistics emergencies The Rich Pay More, But the Poor Pay More Dearly median percent of household income paid in bribes (among those that paid) percent of households that reported paying bribes in the previous 12 months 33%
20% 16% 11% 8% 5% poorest third middle third richest third The Rich Bribe for Speed, The Poor Bribe for Access 100%
30% 25% 22% 23% 17% 11% 6% 9% 0% poorest third middle third
richest third Notes: This chart is restricted to those respondents who made unofficial payments that they felt were necessary in order to receive proper service. Thus the designation "gratefulness" not not imply an innocuous token of appreciation or tradition. Processes and Instruments Medium Term Expenditure Framework MTEF & Budget Cycles and Human Resource Planning Example from reading Linking personnel information and
payroll Human Resource Management Information System (HRMIS) Post management Wage bill control Rightsizing and severance Processes and Instruments Estimating the fiscal impact of pay and employment adjustments: Modeling tool to explore alternative scenarios
Challenges: Mongolia, Philippines, Cambodia, West Bank/Gaza, Albania, etc etc Personnel data Compensation data Pensions and social security contributions The role and importance of participatory PERs
Examples: Philippines, Indian states Reference: PEPFMR and follow up The AAA project cycle see uploaded presentation CSR: Operational Approaches Strengthening the linkages Thailand Efficient nucleus Russia (TAMP) Internal structural adjustment UK/Japan
Combination of all three: New Zealand/Australia Kazakhstan CSR: Operational Approaches Personnel management systems Addressing capacity constraints Simplification of pay and grading structures Internal upward feedback from inside External feedback for measuring impact:
Feedback from public (households/firms) Feedback from civil society and media Public Pay Policy and Its Implications for the Budget Some concepts Civil service compensation: international comparisons Public pay policy issues Budget formulation, execution, monitoring: Processes and Instruments
Drøft kvifor ein slik lærar har elevar som viser skulefagleg framgang og lite uro. ... som støtte for delmål og ballast mot nederlagskjensle når det går gale Nedtonar fokus på "vinn eller tap" (Gould, Hodge, Peterson & Giannini, 1989; Walsh...
Culturally Competent Women's Health Care: Caring for Somali Women. Ginny Isaq, MA, RN, SNM ... violence and extreme trauma. Women have also experienced traumatic events as children, including Female Genital Cutting. ... women with type III often present to hospital...
(1) Compare to the FFT-based method, what are the advantage and disadvantage of (a) the recursive method and (b) the chirp Z transform method for STFT implementation? (10 scores) (2) Prove that (a) the Gabor transform of ( ) is...
The Army's Equal Opportunity (EO) Program Purpose Formulates, directs, and sustains a comprehensive effort to maximize human potential and to ensure fair treatment for all persons based solely on merit, fitness, and capability in support of readiness. EO Philosophy Based...
Please check your final exam schedules and see our link on Blackboard if you need to sign-up for the makeup final. It is not ready to use. Please check your i>clicker score on Bb and make sure your device is...
The Defining Characteristics 12th-15th century (1100-1400) Earlier romances in verse (poetic form) Later ones sometimes in prose (NOT poetry) Tales of courtly love and chivalric adventure Based on feudal ideal of chivalry Code of Chivalry: Emphasizes courage, grace, honor, love,...