ABSTRACT
In the field of public administration and governance, the remuneration of civil servants occupies a central position and has a major impact on the efficiency, effectiveness, and equity of public services. At the European level, there is neither a uniform salary structure for civil servants nor a uniform approach to remuneration. In most European Union countries, there is rigorous regulation regarding remuneration, with limited or no discretion for additional remuneration incentives. In recent decades, there has been a shift from seniority-based to performance-based remuneration, with Member States handling this differently, considering various factors such as national culture, development of public sector administration, political pressure, public opinion, budgetary constraints, and more. A high degree of salary regulation in civil service remuneration makes immediate responses to performance difficult. However, with a well-designed performance-related pay system that promotes quality of work and is well-measured, transparent, and well-communicated, it is possible to improve the quality of services and increase employee satisfaction. On the other hand, it is important to deal appropriately with possible negative aspects. Given the changes in the labour market, especially the shortage of workers, it makes sense to maintain, promote and effectively implement performance-related pay schemes to attract and retain talent in the public sector.
