Problems of Regulating Remuneration for the Work of Public Sector Employees in Lithuania

Abstract

The article deals with the problems related to the remuneration for the work of public sector employees in Lithuania resulting from different legislation (laws, governmental resolutions and ministerial orders issued on the basis thereof) applied to regulate the conditions of remuneration for the work of public sector employees. In the context of the present economic downturn the situation is even more complicated by unequal adjustment (cutting) of the salaries of the employees in different agencies/organisations which even more distorts the conditions of remuneration for work regulated by different legislation. According to the authors of the article, the setting of the conditions of remuneration for the work of public employees requires uniform criteria to be applied to the differentiation of the salaries and wages. It is illogical to increase salaries/wages to some employees at the expense of others without taking into consideration the level of responsibility, the complexity and the social value of the work performed as well as the requirements imposed on the employees' competencies. Furthermore, remuneration for work (especially to highly paid executives and professionals) should be set taking into account not only the complexity of their work, the level of the agency/organisation, etc., but also the contribution (benefit) of a particular employee to both the agency/organisation and the whole society. Such a system of remuneration for work would undoubtedly increase motivation of public sector employees.