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Finance Ministry to overhaul compensation system

by May 25th, 2018

Finance Minister Dr. Nigel Clarke says the ministry will be moving to overhaul the compensation system for public sector workers, resulting in a simpler compensation structure.

He explains that the ministry intends to work with its partners, in a consultative manner, to reform the allowance structure in the public sector, and develop a modern compensation policy, that guides the development and management of compensation.

This Dr. Clarke says will serve to properly compensate employees, encourage performance, and moderate the rate of growth of the total wage bill.

He was speaking at yesterday’s general meeting of the Jamaica Civil Service Association.

Dr. Clarke says the complex compensation structure within the public sector was unearthed by a review of public sector compensation conducted by the transformation implementation team in 2017.

According to the Finance Minister, the existing structure allows for a separation in the treatment of salaries and allowances.

He adds that in the past, the planned parameters for increases to salaries have not held for increases to some allowances, resulting in wage bill increases that have been more than programmed for in the budget.

The Finance Minister points out that this complexity has also served to constrain the government’s ability to review and modernise compensation,  as given the typical wage cycle, with 40 bargaining units to negotiate with within each two year period, more often than not only level of wages and allowances can be considered.

Meanwhile, Dr. Clarke has underscored the importance of transforming the public service into a modern sector that is fair, values people, and consistently delivers high quality services.

He says the transformation of the public sector is a priority on which the finance ministry will be focused given the significance placed on it by the government.

According to him, the the civil service is the single most important institution which affects the lives of Jamaicans.

As a result he says the civil service must be efficient and responsive in the provision of services to citizens.

Dr. Clarke asserts that the government is intent on conducting the transformation process in a fair and consultative manner as success in achieving a transformed public sector will require the collective input of ministries, departments, agencies, unions, workers, civil society and the private sector.

Dr. Clarke states that much progress has been made to provide hassle-free service to all stakeholders.

As such he adds that  it is an imperative that laser-like focus be applied to  dealing with inefficiencies that are structurally embedded in how the service works  to the strengthen the ability of the public sector to perform at its optimum.

 

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