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Poland - Reforming government pay setting practices (English)

This 'Reforming Government Pay Setting Practices' report is a response to a request from the Polish Ministry of Finance (MOF) for technical advice on Poland's system of public sector pay. The Ministry's primary aim is to contain the public sector wage bill as part of an overall effort to reduce the fiscal deficit. But the Ministry is also concerned with more fundamental structural issues in the system of pay setting: that individual pay levels for some positions may be higher than is necessary to attract and retain qualified staff and, in other cases, may be too low. And that the absence of clear rules for job grading, pay setting, and promotion may undermine staff morale. This initial report looks only at a subset of public employees-the so-called budget sphere. This includes all staff paid from the central government budget-including central government civil servants and military personnel-but excludes staff paid by local governments. These include the majority of teachers and medical personnel. A more detailed analysis of the wage setting process looks at a subset of the budget sphere: only civil servants. Note that the decision to focus on the civil service was dictated by the resource constraints of this study and the scarcity of data on public employment outside the civil service. It does not imply that problems in the civil service are more severe than elsewhere in the public sector. The report focuses on three questions: (i) does the system succeed in controlling the aggregate wage bill? (ii) Are salaries high enough to attract and retain qualified staff? And (iii) Is wage setting fair? Does it motivate staff?

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Details

  • Author

    Dillinger,William R., Korczyc,Ewa Joanna, Rexed,Knut

  • Document Date

    2013/06/19

  • Document Type

    Other Financial Sector Study

  • Report Number

    ACS4446

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    Poland,

  • Region

    Europe and Central Asia,

  • Disclosure Date

    2013/07/19

  • Disclosure Status

    Disclosed

  • Doc Name

    Poland - Reforming government pay setting practices

  • Keywords

    Wage Bill;central government wage bill;public sector wage bill;local labor market condition;civil service cadre;wage setting;collective bargaining agreement;rate of inflation;central government expenditure;social security fund;Public Sector Compensation;private sector wage;private sector job;annual budget law;high level position;health care system;private sector worker;compulsory social security;wage teacher;wages and salary;labor force survey;weights and measure;public wage bill;degree of autonomy;private sector demand;difference in wages;state owned enterprise;trade union density;federal civil service;total wage bill;cabinet of minister;annual budget process;global expenditure ceiling;freedom of action;public sector employment;regional water authority;wage freeze;wage increase;base wage;state sector;turnover rate;administrative budget;Public Employment;employee unions;staff morale;economic slowdown;position classification;administrative authorization;monthly salary;pay scale;wage level;fiscal responsibility;equivalent measure;aggregate budget;salary schedule;lifetime employment;low salary;budget allocation;construction supervision;sectoral ministries;personnel expenditure;wage scale;Job Grades;fiscal deficit;wage spending;salary levels;job requirement;clear rules;fiscal situation;resource constraint;senior specialist;Higher Education;fiscal pressure;national legislation;employment data;inflation rate;Labor Union;federal country;indexation formula;political pressure;social issue;central policy;organizational structure;retirement age;qualified candidates;civil engineering;budget proposal;political parties;higher grade;grade structure;conventional system;political party;administrative allocation;central guideline;career stage;wage adjustment;wage determination;individual data;statistical evidence;classification system;management responsibility;existing position;tax control;principal source;tax office;Labor Law;government employer;executive board;federal legislation;Budget Management;budget circular;applicable law;subsidiary right;emergency personnel;medical personnel;social insurance;maternity leave;statistical system;regional account;professional association;internal auditor;minimum wage;separate budget;average wage;government budget;grade system;budget cycle;salary range;Health Workers;fundamental problem;state agency;government function;election campaign;employment opportunity;international standard;system state;fiscal priorities;job description;skilled people;anecdotal evidence;legal framework;total compensation;professional work;performance rating;adverse environment;delinquent account;annual leave;professional soldier;excessive deficit;deficit target;external control;employment condition;employment opportunities;deficit ceiling;fiscal adjustment;government deficit;private employer;increase productivity;trend growth;federal government;budget execution;interventionist policy;

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Citation

Dillinger,William R. Korczyc,Ewa Joanna Rexed,Knut

Poland - Reforming government pay setting practices (English). Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/909311468095663693/Poland-Reforming-government-pay-setting-practices