Resources

Thematic Group

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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