New approaches to remuneration of civil servants in Ukraine

Problem setting. The issue of renumeration has always been and is relevant, since salary is not only an important motivating factor for an employee, but also a source of livelihood for him/her and his/her family, a means of satisfying most needs. Undoubtedly, the key to a high-quality civil service is the current system of incentives, and rewards that encourage civil servants to fully realize their potential in the performance of professional duties. Therefore, it is necessary to complete the reform of remuneration system for civil servants, which will ensure the retention of professional personnel and recruitment of new young talents to the civil service.

Recent research and publications analysis. The questions of labor organization and management, as well as the procedure and scope for salary payment of civil servants are studied in the works of A.V. Obolenskyi, I. P. Lopushynskyi, N.R. Nyzhnyk, S. Chernonoha, N.O. Bohdanov, P. Tymoshchuk, A.M. Shkolyk, V.O. Chmyha et.al. Many analytical findings on the new model of remuneration of civil servants are presented on the resources of the National Agency of Ukraine on Civil Service.

Highlighting previously unsettled parts  of the general problem. There is no comprehensive study of the new model of remuneration of civil servants, taking into account  the  novelty  and  recent  events  regarding  consideration  of  the  Draft  Law  on remuneration of civil servants in the science of public administration. Therefore, this became the subject of our analysis in a separate scientific article.

Paper main body. It is determined that the work of a civil servant is too complex and is associated with a high emotional and intellectual load, a high level of responsibility, minimal motor activity, a large number of assignments and short deadlines for their implementation, and such work shall be paid in due way. Therefore, it is necessary to review the system of remuneration of civil servants and adopt its new model.  In the developed countries, a significant amount of the state budget is spent on civil service. An important step in this direction is the Draft Law "On Amendments to the Law of Ukraine "On Civil Service" Regarding the Introduction of Uniform Approaches to the Remuneration of Civil Servants based on Qualifications" which should become the cor- nerstone of reform processes to build a clear, transparent and fair system of remuneration for employees of state bodies. This document provides for a clear and transparent salary structure with limited bonus payments, and the new salary structure takes into account the employee's qualifications and experience, the importance and complexity of work in the position, the efficiency and quality of official duties performance, as well as the degree of responsibility and effectiveness in work. The Draft Law is included in the Draft Sections of the Recovery Plan for the post-war reconstruction and development of Ukraine.

The following changes are provided for in the Draft Law:

1.  European salary structure: i.e. 70% (salary) to 30% (bonuses);
2. Setting the maximum amount of long service bonus at the level of 30% of the increased official salary, 2% for each year of work. Reducing the amount of the bonuses from 50% to 30% will not worsen the payment terms;
3. Determining the amount of official salaries based on the classification of civil service positions in accordance with the catalog of standard positions and criteria for assignment to such positions;
4. Conducting annual comparisons of the amount of salaries of standard civil service positions with private and commercial organizations when preparing official salary schemes. Other novelties of this Draft Law are also analyzed, including changes in the structure of salaries (constant and variable components).

The Draft Law also includes the establishment of a grading system, which has long been used in private enterprises. The essence of the grading system of remuneration is as follows: all positions in the organization (body) are evaluated by a number of factors (for example, working conditions, level of responsibility, cost of error), and the results of these data shall determine the level of remuneration for each position separately. The advantages and disadvantages of such a system are considered.

Some shortcomings of this Draft Law are also analyzed.

Conclusions of the research and prospects for further studies. We may assume that the current system of remuneration in the civil service is inefficient, unfair, outdated and requires new models of its formation. Reforming the system of remuneration in the public sector based on the classification of positions of civil servants will eliminate unfairness in remuneration, since in accordance with current international standards, it shall be based on the effectiveness, professionalism, degree of responsibility and personal contribution of each employee to the common cause. The Draft Law under consideration (after passing all stages of the legislative process) may fully meet the needs of modern society, experts and employees of state bodies. It will bring our state closer to international standards in the field of remuneration in the public sector and is a priority direction for Ukraine on the way to the regulations and standards of the European Union.