On Tuesday, November 16, the Latvian parliament adopted on final reading amendments to the Law on the Remuneration of Civil Servants and Employees of Public and Local Authorities, which allow an increase in the salaries of those employed in public administration from 2023.
This means that people employed in the state administration and the next Cabinet of Ministers, and not the current one, will receive higher salaries.
LETA’s estimates for the government’s initial legislative changes indicate that from 2023, the salaries of the President of the State, the President of the Saeima, the Prime Minister, the President of the Supreme Court and the President of the Court constitutional will reach 7,607 euros. It also means the Prime Minister’s salary. Minister and President of the Saeima will increase by 40%.
The salaries of ministers will increase by a third to reach around 6,700 euros.
The salary of the Attorney General will reach around 7,280 euros. The salary of the auditor and mediator will reach around 6,700 euros and that of the vice-president of the Constitutional Court will be around 6,500 euros.
The salary of Saeima deputies who do not have additional posts will reach around 3,800 euros in 2023, which is 10% more than what deputies are currently paid.
The aim of the changes to the aforementioned law is to increase the efficiency and quality of the work carried out by the state administration through a reform of the remuneration system, as reported by LETA by the Chancellery of ‘State.
It was concluded that the salary paid to people employed in public administration is up to 28-38% lower than the salaries paid in the private sector for positions of a similar level.
In this way, the state administration suffers from a high turnover of staff and it is increasingly difficult to attract new specialists.
Previously, the state chancellery revealed that up to a third of people hired by different public administration institutions need additional training, creating undue stress.
Complexity of tasks and low wages are the two most common reasons people decide to leave government.
“The work done by the executive branch, the ability to carry out orders of government and parliament is directly linked to the professionalism and qualifications of those employed in the public sector. The state administration is no longer able to compete with the labor market when it comes to attracting experts, industry professionals and senior executives, ”the director of the Jānis Citskovskis State Chancellery.
He said that for the first time in eleven years, the changes to the aforementioned law will reform the existing pay system in public administration and solve some long-lasting problems – low employee motivation, high staff turnover and need for investment. considerable resources in training.
To avoid these problems, the government has provided some solutions that will help improve the competitiveness of wages in public administration by setting the monthly salary level at 80% of the private sector salary level. In addition, by changing the permanent and fluctuating part of the salary and reducing the number of bonuses, it will be possible to reduce the total amount of bonuses that employees will be able to receive – 60% to 30% of the monthly salary.
This should promote pay stability and reduce the internal administrative burden with the complicated bonus system.
In addition, changes also introduce other modern salary solutions – three-level salary scale, link between remuneration and economic development, introduction of a market coefficient for wanted specialists.
The State Chancellery reveals that these solutions aim to match remuneration to the level of responsibilities and the complexity of the tasks of the employees. It must be said that the reform of the salary system is part of the State Administration Reform Plan 2020, which aims to help manage ministries and institutions more effectively, reduce bureaucracy, optimize the number of employees. employees, attract qualified employees and pay appropriate salaries. The problem is similar for the municipalities, in particular within the framework of the administrative territorial reform.
In view of the problematic situation, the implementation of complex solutions in the law on remuneration will be done gradually.
In 2023, it is planned to develop an optimal salary budget outlook and prepare a budget request so that it is possible to define in the 2024 draft budget the guidelines for the reduction of salary inequalities in the administration. public.
“Every law must be ‘alive’ – must follow the times and processes of society. […] We will monitor the process of adopting amendments and add adjustments, as well as changes in the labor market and state administration. In the next steps, we will look at facts and data, conduct an annual salary comparison, monitor changes in salary levels in public administration and the results of other reforms to see if we are any closer to our goal – improve the efficiency and quality of the work carried out by government and government institutions ”, underlines Citskovskis.
The annotation to the law mentions that the indicative funding needed to implement the changes to the law is 6.444 million euros in 2023 and 6.852 million euros in 2024.
Earlier, Latvian Prime Minister Krišjānis Kariņš told reporters after a government meeting that the aim of the amendments was to increase competition and competitiveness in public administration.