From 2025 the productivity bonus will be extended much further to cover all specialist positions in the public sector. The horizontal implementation of the measure will start from next year, although this will be one of the topics of discussion with the European Commission, since the extension of the measure has a budgetary cost, which, in fact, will be permanent based on the design.
In the first phase, the objectives to be rewarded for the public bodies will be determined, following processing by the Incentives and Rewards Committee, which is made up of officials and the competent general secretaries, based on the priorities of each ministry. As long as these goals are achieved, employees who have substantially contributed to their achievement will receive the productivity bonus.
Eligible employees can receive a cash reward of 6% to 15% of their annual base salary, which equates to one to two salary amounts. The selection of the eligible employees and the amount of reward per beneficiary is carried out by the service superiors and not by the political leadership, based on their contribution to the achievement of the specific objectives.
40% of the reward amount is distributed equally to the eligible employees who worked to achieve the goal and 60% is distributed non-horizontally and in relation to the specific contribution of each employee to the achievement of the goal.
With the relevant bill that has been completed by the Ministry of the Interior, safeguards are also provided so that the bonus does not turn into a horizontal allowance. Non-monetary rewards are also introduced, which can, for example, take the form of participation in special knowledge and skills certification programs by public administration bodies abroad.
The employees who will participate in this alternative reward will mainly be those who do not participate due to position in achieving goals. They will not be able to get the bonus but will have the possibility, due to formal qualifications, either to participate in the monetary bonus next year by changing position or to have a faster professional development.
The new regime
Based on the relevant law, at the beginning of each year, the targets eligible for reward will be determined from the set of targets that have been set, as well as the responsible organizational units for their implementation and specific performance indicators (key performance indicators – KPIs) for each target .
After the year is completed, the reward amount corresponding to each body will be calculated according to the number of goals achieved. This means that for each operator there will be set a maximum amount that will be allocated for the productivity bonus which will not be a given in advance that it will be used up. For example, if the targets are achieved at a percentage of 70%, this will also be the amount allocated from the total amount. Eligible employees who worked to achieve the goals will then be determined by their superiors.
40% of the available reward amount will be distributed equally to these employees while 60% will be distributed by decision of the superior in a non-horizontal way but in relation to the offer of each employee.
With the new system, the role of supervisors is upgraded, who are given resources in order to evolve into essential managers of their organic units, in combination with other initiatives of the Ministry of the Interior such as the new target setting and evaluation system which will be selected.
The reward
For employees who do not receive the productivity bonus, the possibility of non-monetary rewards is foreseen (eg some additional days of leave with full remuneration, possibility and priority to participate in training programs).
The benefits of the system are multiple. For employees, their efforts and hard work are effectively recognized, transferring an established practice of the private sector to the public sector. For citizens, better achievement of objectives leads to more efficient public administration and faster implementation of reforms, with a direct impact on their daily lives and quality of life.
For the implementation and monitoring of the system, a Department of Incentives and Rewards will be established at the Ministry of the Interior and an interministerial Committee of Incentives and Rewards with the participation of the Presidency of the Government, the Ministry of National Economy and Finance and the Ministry of the Interior. A Rewards Information System is also being prepared that will interoperate with other Government information systems. The relevant studies for the design of the system as well as the implementation of the information system are financed by the Recovery and Resilience Fund.
Pilots in 2024 as well the program
2024 will be the last year of the pilot program to pay the productivity bonus for a limited number of employees not to exceed 50,000. Productivity bonuses will be awarded to service-specific employees involved in the management of community funds from the TAA, those serving in the financial control authorities of ministries, those managing public procurement and judicial officers. The total fund that will be allocated this year reaches 40 million euros and the beneficiaries will have a monetary reward for the percentage of achievement of the goals that will range from 800 to 1,000 euros, depending on the limitations that will exist on the amounts that will be allocated to each service. The exact amount that will be shared is not determined since it will be proportional to the achievement of the goals of each hole that will participate in the program.
Objectivity of the procedure
The bill introduces a number of safeguards for objectivity in the process of awarding the productivity bonus. The goals that will be chosen will be very specific. A methodical way of distributing the reward is foreseen, with specific mathematical formulas that are explicitly stated in the draft law. The officials who will receive productivity bonuses are chosen by their superiors and not by the political leadership of the ministries. The Reward Information System ensures the fair application of the productivity bonus, through the monitoring of performance metrics and the necessary documentation. The National Transparency Authority is given the opportunity to carry out a sample check of fair distribution and correct payment of the bonus. The objectives of the services resulting from the existing process of setting goals for public bodies are formulated in their entirety according to the SMART method. In this way, objectives arise that are: specific,
measurable, achievable, relevant, time-bound.
#bonus #salaries #public #sector
