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© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Civil Service Remuneration in Germany Dr. Hans-Achim Roll 20 January 2016 Tbilisi, Georgia
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HA Roll Presentation on Remuneration 20Jan2016

Apr 14, 2017

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Page 1: HA Roll Presentation on Remuneration 20Jan2016

© OECD

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Civil Service Remuneration in Germany

Dr. Hans-Achim Roll

20 January 2016Tbilisi, Georgia

Page 2: HA Roll Presentation on Remuneration 20Jan2016

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The philosophy

• Alimentation principle as guiding principle. Civil servants are not paid for individual work done, but compensated for their service as a whole.

• The alimentation of civil servants is the other side of their fiduciary duties.

• Basis: Article 33 para 5 Basic Law.

Page 3: HA Roll Presentation on Remuneration 20Jan2016

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Normative Framework

• Federal level: Federal Civil Servants’ Remuneration Act (Bundesbesoldungsgesetz (BesG) 19. 6. 2009, latest amend. 3.12.2015

• State level: special legislation adopted by the States (Länder).

• Public employees: collective agreement (TVoeD 13.9.2005, latest amend. 1.4.2014

Page 4: HA Roll Presentation on Remuneration 20Jan2016

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Four career paths

• Ordinary service including four degrees (simple routine/support functions).

• Intermediate service including four degrees (implementation functions).

• Higher intermediate service including four degrees (implementation functions).

• Higher service including four degrees (from desk officer to division head).

Page 5: HA Roll Presentation on Remuneration 20Jan2016

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Public sector pay scales

• Pay scales list exact amount of remuneration. • Pay scales A and B: remuneration of civil servants

and military personnel, • Pay scale W: professors and lecturers,• Pay scale R: judges and public prosecutors.

Page 6: HA Roll Presentation on Remuneration 20Jan2016

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Pay scale A (1)

• Pay scale A mirrors the four civil service career paths with their respective degrees. Ordinary service: pay grades A 2 to A 6 Intermediate service: pay grades A 6 to A 9 Higher intermediate service: pay grades A 9 to A 13 Higher service: pay grades A 13 to A 16

Page 7: HA Roll Presentation on Remuneration 20Jan2016

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Pay scale A (2)

• The highest grade of a lower career path is usually the starting grade of the next highest career path.

• Salaries in pay grades A 2 to A 16 are incremental (experience steps).

Page 8: HA Roll Presentation on Remuneration 20Jan2016

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Pay scale B

• Pay scale B applies to outstanding positions such as state secretaries, directors-general, directors/presidents of state bodies, their deputies etc.

• Salaries in pay grades B 1 to B 11 are fixed (no experience steps).

Page 9: HA Roll Presentation on Remuneration 20Jan2016

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Assigning pay grades to functions

• Job evaluation to assign functions to a degree/rank/title and to the corresponding pay grade.

• Possibility to assign the same function to three degrees/ranks/titles and corresponding pay grade within one career path.

Page 10: HA Roll Presentation on Remuneration 20Jan2016

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Remuneration Components (General)

• Basic salary. • Family allowance.• Other allowances, if applicable (including assignments

abroad). • Performance bonuses and performance allowances.• Special allowances depending on the labor market

situation.

Page 11: HA Roll Presentation on Remuneration 20Jan2016

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Basic Salary

• The basic salary is the main element of remuneration.

• The basic salary is based on the pay grade of the assigned degree/rank/title, not on the function actually performed.

• The degrees/ranks/titles and pay grades are specified in the federal pay scales.

Page 12: HA Roll Presentation on Remuneration 20Jan2016

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Incremental basic salary (1)

• Progression is achieved through step increases within certain periods of service (experience periods).

• Duration of experience periods: starting with two years at the beginning, later three and four (2-3-3-3-4-4-4 years).

• Example: 8 steps; difference between steps for A 13 (desk officer) app. between 5% and 3% of the basic salary.

Page 13: HA Roll Presentation on Remuneration 20Jan2016

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Incremental basic salary (2)

• Permanent outstanding performance: next step ahead of time. (Limitation 15% per year).

• Performance below average: remain at the previous step of the basic salary.

Page 14: HA Roll Presentation on Remuneration 20Jan2016

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Family allowance

• Married persons’ allowance and childrens ' supplement depend on pay grade and family circumstances.

• Range: from 126 to 246 Euro, plus 113 (first and second child)- 354 Euro (third and further children)

• Civil servants are also entitled to the general state child benefit.

Page 15: HA Roll Presentation on Remuneration 20Jan2016

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Other allowances (1)

• Functional allowance: for performance of functions exceeding the general level of the respective pay grade (ceiling for overall number).

• Extra pay for difficult working conditions, shift work, overtime (only in certain areas and as a set proportion of the hourly salary) .

Page 16: HA Roll Presentation on Remuneration 20Jan2016

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Other allowances (2)

• Post allowance for outstanding positions (some directors and security sector): 75% of the difference between the final basic salary of the respective civil servant and the next final basic salary.

Page 17: HA Roll Presentation on Remuneration 20Jan2016

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Performance related pay (General)

• Article 42a Federal Civil Service Remuneration Act and Ordinance on Performance Bonuses and allowances (Bundesleistungsbesoldungsverordnung v. 16. 6. 2009).

• Beneficiaries only pay grade A• Two types: performance bonus and performance

allowance

Page 18: HA Roll Presentation on Remuneration 20Jan2016

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Performance bonus

• Performance bonus: one-off payment rewarding special achievements.

• Amount: up to the amount of the monthly basic starting salary of the civil servant.

Page 19: HA Roll Presentation on Remuneration 20Jan2016

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Performance allowance

Requirement: positive performance forecast. Duration: Twelve months, possibility of

prolongation. Amount: up to 7% of the monthly basic starting

salary of the civil servant.

Page 20: HA Roll Presentation on Remuneration 20Jan2016

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Performance related pay (Management)

• 15 % Quota• Overall central annual budget 31 Mio; 0,3 % of the

costs of public employment in the respective ministry.

Page 21: HA Roll Presentation on Remuneration 20Jan2016

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Labor market allowance (1)

• In case of acute staff shortage, special allowances may be paid in line with budgetary rules (see art. 43 Remuneration Act).

• Amount: Pay scale A maximum 20% of the respective starting basic salary; pay scale B maximum 15%. 50% of these percentages in case the allowance is paid to an incumbent.

Page 22: HA Roll Presentation on Remuneration 20Jan2016

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Labor market allowance (2)

• The responsible highest service authority decides on awarding special allowances.

• Criteria for the decision: Overall relevance of the position Urgency of filling the position Applicant situation Requirements of the position and qualification of

the beneficiary.

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Compression rates

• Relation between basic salary A 2 (courier) and B 11(state secretary): 6,65

• Relation between basic salary A 13 (desk officer) and B 11 (state secretary): 3,31

Page 24: HA Roll Presentation on Remuneration 20Jan2016

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Adjustment mechanisms

• Regular adjustment in consideration of the economic and financial circumstances by law.

• In practice the adjustment of remuneration of civil servants follows the adjustmenet for public employees (collective agreement).

Page 25: HA Roll Presentation on Remuneration 20Jan2016

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Thank you

[email protected]