Government approved draft law on introduction of unified approaches in remuneration of civil servants based on the classification of positions

Today, at a regular meeting, the Government approved the draft law of Ukraine “On Amendments to the Law of Ukraine “On Civil Service” concerning introduction of unified approaches in remuneration of civil servants based on the classification of positions”.

“The draft law is designed to introduce a transparent system of remuneration of civil servants based on the classification of positions, to strengthen the role of the official salary, to stop the practice of paying excessive unreasonable allowances, to introduce an effective mechanism for optimizing the maximum number of employees of state bodies, to introduce a system of grades,” said Minister of the Cabinet of Ministers of Ukraine Oleh Nemchinov.

The main novelties of the draft law are:

- introduction of a transparent remuneration system based on the classification of positions. Thus, remuneration of a civil servant should take into account the qualifications and experience, the importance and complexity of the position, the degree of responsibility, as well as the effectiveness, efficiency and quality of performance of official duties.

- clear division of salary into basic and additional.

The basic part should be at least 70% at the individual level (fixed payment and basic remuneration). This includes: seniority allowance, rank allowance, annual leave allowance. The salary, i.e. the grade, is determined on the basis of the classification of civil service positions according to the Catalogue of Standard Positions.

The additional part should not exceed 30% at the individual level (depends on personal contribution to the overall performance of the state body). This includes monthly or quarterly bonuses, bonuses based on evaluation results, compensation for additional workload and for vacant positions.

- limitation of incentive payments. The annual performance evaluation bonus may not exceed the amount of the official salary. Monthly bonus of a civil servant may not exceed 30%, and quarterly bonus - 90% of his/her official salary.

- setting the maximum amount of long-service bonus at 30% of the increased official salary.

According to the provisions of the draft law, introduction of the new system of remuneration of civil servants is expected starting January 1, 2024, except for civil servants of state bodies regulated by special laws, for whom the new remuneration system is expected to be introduced starting January 1, 2025, by which time the provisions of special laws will have to be brought in line with the provisions of the Law of Ukraine “On Civil Service” as it relates to remuneration of civil servants.