Standardizing Public Sector Wages in Uzbekistan: New Salary Reforms Introduced
Uzbekistan to Implement Unified and Transparent Wage System for Civil Servants
Uzbekistan is gearing up to introduce a new “unified, transparent, and fair” wage system for all ministries and government agencies, as announced by the Ministry of Economy and Finance to Kun.uz. This new system will ensure that salaries are solely paid from the state budget, with the use of off-budget funds for wage payments being prohibited. Tariff coefficients, rank levels, performance-based bonuses (KPI), and annual bonuses will be aligned with international standards.
The country is in the process of transitioning to a unified system for determining the salaries of civil servants. This reform was outlined in a resolution adopted by the Cabinet of Ministers on April 8.
The resolution aims to abolish mechanisms that allow civil servants to receive additional payments from the state budget, off-budget sources, and state-targeted funds. The Ministry of Economy and Finance highlighted several shortcomings in the current wage system, including wide variations in salaries among employees, the use of off-budget funds for additional payments and bonuses, outdated regulatory frameworks, and low base salaries compared to the total wage fund.
The Ministry of Economy and Finance stated that the “comprehensive reform” of the civil service wage system aims to establish a unified, transparent, and fair wage system across all ministries and agencies. Job categories will be based on the nature and complexity of duties and responsibilities, and funding sources will be standardized across government bodies. Additionally, off-budget funds for wage-related expenses will be prohibited, and internationally recognized standards for tariff coefficients, rank levels, KPI bonuses, and annual bonuses will be introduced for civil servants.
By September, a draft legal document is expected to be developed for the implementation of the new wage system. Moreover, a procedure for reducing the number of off-budget fund accounts held by ministries and agencies will also be outlined as part of this reform.
These changes are set to bring about a more transparent and fair wage system for civil servants in Uzbekistan, aligning with international standards and aiming to address the shortcomings of the current system.
