New bonus rules for government officials: The Cabinet of Ministers has set a limit of 30% of their annual salary.
Ukraine has presented a novel bonus structure for public sector employees—conditional on the results of a yearly performance assessment. In general, incentive payments may be reduced due to a prescribed threshold of no more than 30% of the official's yearly wage.
This is outlined in Cabinet of Ministers Decree No. 953 from August 8. The document sanctions an updated method for disbursing bonuses to government employees, delineating the bonus computation methodology and approval processes for particular roles.
Factoring in work hours when calculating incentive payments
The revised version specifies that monthly or quarterly incentive payments are figured based on precise hours completed. This also pertains to durations of holiday, temporary incapacity, or other circumstances where payments are executed based on the average compensation.
Establishment of a fresh reward
Besides monthly and quarterly incentive payments, officials will secure a bonus based on the outcomes of a yearly performance evaluation. The sum will hinge on specific output and the organization's remuneration budget. Disbursement will happen at the latest in December of the evaluation year, irrespective of the hours logged in the month of payout.
Yearly bonus cap
The preceding regulation did not impose any restrictions on the aggregate yearly bonus amount. Presently, though, it is mandated that the cumulative yearly bonus sum cannot go beyond 30% of a civil servant’s annual base salary.
Standards for determining incentive payments
Currently, alongside fulfilling the objectives delineated by strategic papers and the Prime Minister’s directives, the incentive will also be subject to fulfilling the tasks outlined by the direct supervisor, the individual substituting their obligations, or the stipulations of the civil service agreement.
Incentive payments during the trial period and upon termination
Formerly, the conditions of incentive payments for staff members on probation or those departing were uncertain. Now, it has been determined that public sector employees on a trial period receive incentive payments on a standard footing, and upon leaving, incentive payments are calculated for the span actually worked in the departure month.
Coordination of incentive payments for designated leaders
Incentive payments for the leaders of certain state bodies will require agreement with government authorities. For example:
- State Statistics Service – with the First Deputy Prime Minister – Minister of Digital Transformation;
- The State Regulatory Service, the Asset Search and Management Agency, and the State Service for Food Safety and Consumer Protection – with the Minister of Economy, Ecology and Agriculture.
The new procedure additionally inserts a distinct provision governing the granting of incentive payments to other Category A public servants in consent with the designating body or authorized figure.
December Reward Proposal Submission Method
Incentive proposals must be presented, just as before, by the 5th of the subsequent month. Nevertheless, an exception has been enacted for December incentive payments: proposals must be lodged seven days prior to the ultimate day for payments established by the Treasury for the pertinent fiscal year.