A new salary reform expected to be finalized this year in public administration

The Department of Public Administration (DPA) expects to finalize this year the salary reform which will be increased based on some new criteria, which have to do with job results, training, etc.

With the support of the IPA 2014 project “Implementation of civil service reform in public administration” aims to implement wage reform.
The reform contains two sub-regulations regarding the new salary structure in the public administration, firstly the implementation of the new salary structure according to the civil service legislation and secondly the establishment of standards that will serve as a guide for determining salaries for the entire administration public, taking into account the principle “equal pay for equal work” as well as the fair remuneration for the responsibility and impact that the work of everyone gives in the performance of functions and duties of the institution.

DPA announces that the salary reform document is expected to be finalized during 2020, and then DPA in cooperation with the Ministry of Finance and Economy will begin calculating the budget implications for this reform in order to fully implement it.

The new organization of the salary system in the civil service will be based on the evaluation of the job, the annual achievements of the civil servants and the results in the compulsory trainings. DPA emphasizes that wage reform remains a challenge, as a transformation of the current performance structure based on performance is needed.

SIGMA, the OECD unit for support and improvement of governance, evaluated with three points the salary indicator in the administration with a decrease compared to 2015, underlining the fact that the assessment “vertical promotion and salary increase remain the only ways to improve wage conditions ”and changes made to Albanian legislation are still not ensuring a coherent wage system. Regarding 2019, there is no evaluation of this indicator by SIGMA, however it is expected that the implementation of the reform of the payroll system will address the recommendations of the latest evaluation of SIGMA.

Also, since 2017, the indicator that presents the ratio of the maximum salary in public administration (salary of the President of the Republic of Albania) to the minimum salary in public administration has not changed.

This indicator will not change compared to 2017 as the President’s salary should be 22 times higher than the minimum wage in the country. Thus, with the increase of the President’s salary, the minimum salaries in the administration are automatically increased, but the salary of the head of state has not increased for three years.

/Klara Ruci/

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