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Pay & Employment Models

To make hard choices between public employment numbers and corresponding wage bills, governments need the information necessary to weigh the trade-offs. What will the wage bill amount to if top civil servants are paid a contract employment premium ? By how much can the wage bill be reduced if the number of unskilled workers is reduced by one-fourth? What are the costs of redundancy benefits? Quantitative pay and employment models can help answer these questions, and provide estimates of different 'what if' scenarios.

The table below summarizes features of some pay and employment models and is part of a recent review of these models [PDF 512K]. To access a pay and employment model, its detailed information sheet and accompanying civil service brief, click on the country name.

Do you have a model to share with this database? Do you have suggestions and /or information necessary to refine any of these models?

 

Purpose

Extent of coverage

Aggregation 

Compensation coverage

Associated costs to budget

Data issues

Downsizing Options Simulation Exercise

Fiscal impacts of changing pay & employment levels

Depends on user-supplied input data

Moderate to low. Designed to cover up to 10 grades/ groups of staff in up to 40 entities.

Total monetary earnings

Severance and early pension payout

User supplies input data, which determine quality of outputs.

Generic

(1) overview of government employment (2) fiscal impacts of changing pay & employment

Models central government ministries and departments

Moderate. Divided into 4 salary categories and 2 types of employment

Total monetary earnings

Voluntary retirement scheme, excluding pensions liabilities

Low. Data are up to date and well annotated.

Sri Lanka

Fiscal impacts of changing pay & employment levels

Most of public sector.

High. Grouped by central vs. regional wage bill, pensioners, military. By grade level.

Total monetary earnings

Severance and pensions

Significant. Fragmentary data from several years prior.  Extensive assumptions,  extrapolation.

Indonesia

Fiscal impacts of changing pay & employment levels

Most of public sector.

Moderate to low. By main budget user /sector; within each sector, by type of position.

Total monetary earnings

Severance and unemployment

Moderate-low. Users provide data. Current data fairly easy to obtain from budget, entity’s records.

Macedonia

Fiscal impacts of changing pay & employment levels

Civil servants and public enterprises.

Moderate. Employment divided by three types of position.

Total monetary earnings

Pension

Significant.  Fragmentary data, some from 5+ years prior. Extensive assumptions.

Afghanistan

Fiscal impacts of changing pay & employment levels

Federal Civil service only.

Low.

By individual position. Headquarters vs. deconcentrated; ministries vs. other

Total monetary earnings

None

Moderate. Uses recent data. Some assumptions & extrapolation required.

Russia

Fiscal impacts of changing management: staff ratio

Core central government ministries plus 1 province

Moderate.  Focuses only on management vs. staff, but uses highly disaggregated data.

Total monetary earnings

None

Moderate. Detailed database. Some data from 5+ years prior.

Pakistan

Earnings loss to retrenched workers, for severance design

User decides

User decides

User decides.  May include intangible benefits.

Pensions

User must develop parameters. Requires detailed data, advanced skills, 1-2 months.

The Zambia pay and employment model [PDF 1.07M] is a recent addition to this database.




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