Economy

Remuneration reform: what has changed for officials after the Verkhovna Rada adopted the new law and how much will they get paid?

On March 11, the Verkhovna Rada of Ukraine (VRU) passed Law No. 8222, which raises salaries for specialists of the State Audit Service of Ukraine (SASU). This was reported by Komersant ukrainskyi with reference to the bill card on the VRU website.

It is planned to raise salaries to 70-90% of similar positions in the private sector.

According to MP Yaroslav Zheleznyak on his Telegram channel, 259 parliamentarians pressed the green button. However, there are nuances. For example, MPs did not support the amendments on increased salaries for the Ministry of Justice, Ministry of Finance, Ministry of Digital Transformation and Ministry of Economy. Similarly, the amendment on the salaries of the VRU staff (the ability to set a seniority bonus of more than 30% of the salary for employees of the VRU Secretariat) did not pass.

What is the draft law No. 8222 about?

Draft Law No. 8222, registered in the Verkhovna Rada of Ukraine on November 23, 2022, is aimed at reforming the system of remuneration of civil servants. Its main goal is to introduce unified approaches to remuneration based on the classification of positions, which will ensure transparency, fairness and compliance of civil servants’ remuneration with their job responsibilities and qualifications.

Main provisions of the draft law:

1. Classification of positions. The draft law introduces a system of classification of civil service positions, which provides for the division of positions into groups and subgroups depending on the complexity, responsibility and qualification requirements. This approach will establish a clear structure of positions and ensure uniform standards for determining the level of remuneration.
   
2. Remuneration based on classification. It is determined that the official salary of a civil servant will depend on the classification of his or her position. This will ensure a fair approach to determining the amount of remuneration, taking into account the complexity and responsibility of the duties performed.
   
3. Salary structure. The salary of a civil servant will consist of a fixed and a variable part. The fixed part will include the official salary and bonuses for rank, length of service, etc., while the variable part will include bonuses and other incentive payments. It is assumed that the fixed part will be at least 70% of the total salary, which will contribute to the stability of civil servants’ incomes.
   
4. Restrictions on incentive payments. Limits are set on the amount of incentive payments to avoid unjustified and excessive bonuses. This will contribute to greater transparency and objectivity in the incentive system.
   
5. Optimization of the number of employees. A mechanism is being introduced to optimize the maximum number of employees of state bodies, which will increase the efficiency of the civil service and rational use of budget funds.
   

The process of consideration and adoption of the draft law

After the registration of the draft law No. 8222, it was sent to the relevant committees of the Verkhovna Rada for consideration. The Committee on the Organization of State Power, Local Self-Government, Regional Development and Urban Planning supported the draft law and recommended its adoption as a basis. The Subcommittee on Civil Service also expressed its support, noting that the draft law is in line with Ukraine’s international commitments and SIGMA principles.

Expected results of the law’s implementation, according to the initiators of the draft law

• Increased transparency. A clear classification of positions and unified approaches to determining remuneration will help increase transparency in the civil service system.

• Motivation of employees. A clear distinction between the fixed and variable parts of the salary, as well as limiting incentive payments, will help to increase the motivation of civil servants to perform their duties efficiently.
  
• Efficiency of the civil service. Optimization of the number of employees in government agencies will increase the efficiency of their work and rational use of budget funds.
  

It should be noted that there have been attempts to increase the salaries of SASU specialists before. Thus, on January 16, 2025, only 198 MPs voted for the relevant amendment (No. 605).

In addition, the Draft Law on Amendments to the Law of Ukraine “On the State Budget of Ukraine for 2024” on Financial Support of the Security and Defense Sector, adopted by the VRU on 18.09.2024, reduced expenditures on the maintenance of government agencies (the Cabinet of Ministers, the State Food and Consumer Service, the State Statistics Service, the HACC, the High Court of Intellectual Property, the State Geological Survey, the State Maritime and Water Transport Service, the State Agency for Energy Efficiency, the State Agency for Tourism, the State Aviation Service, the State Tax Administration, the State Debt Management Agency, the State Financial Monitoring Service, the National Agency of Ukraine on Civil Service, etc.)