The Review of the Pay and Benefit System of Local and Regional Self-government Units and Recommendations for the Reform of the System

Overall Objective

1. 1. Review of the local and regional self-government units pay and benefit system in several EU member states, with a special reference to the level of the central government bodies wages and the local and regional self-government units wages,
   2. Review of the possibilities and restrictions in the determination of wages system for local and regional self-government units, considering that the Republic of Croatia signed the European Decree on Local Self-government,
   3. Review of the existing local and regional self-government units pay and benefit system in the Republic of Croatia and the comparative analysis with the wage policy in central government bodies,
   4. Proposal for a systematic approach to the local and regional self – government units pay and benefit policy (based on the merit and performance system), compatible with the pay and benefit system in other EU member countries and the one proposed for central government bodies.
   5. Proposal of the unique system of working position classification in local and regional self-government units.

Overall Results

1. 1. European Decree on Local self-government (Analysis of obligations of the Republic of Croatia as the signatory of the Decree, Description of experiences of relevant countries in the implementation of the European Decree on Local self-government, Recommendations for the Republic of Croatia)
   2. Payment analysis of the local and regional self-government units of the Republic of Croatia (The review of the fundamental legislative basis in the Republic of Croatia, the Analysis of the state and the differences within the system, the Analysis of wages in local and regional self-government units related to wages on the state level, the Analysis of wages in local and regional self-government units related to revenues and expenses of local and regional self-government units, the Analysis of wages in local and regional self-government units related to the private sector)
   3. Analysis of other expenses related to bonuses in the local and regional self-government units in the Republic of Croatia (Overview of amounts and frequency by type, the Comparison of bonuses in local and regional self-government units to the private sector bonuses, the Comparison of bonuses in the local and regional self-government units to the state administration benefits)
   4. Proposal for the systematic approach to the policy of the pay and benefit system for local self-government units (Proposal for the system for determining wages, Proposal for the bonus system)
   5. Proposal for the unique system of classifying working positions

Type of Services Provided

I The Inception phase – by the end of June, 2007

• • mobilisation of the team, elaboration of the work plan, detailed job descriptions and working methods, initiation of cooperation with the participants and ensuring of the necessary logistics;
  • review of the pay and benefit system in local and regional self-government units and in the state administration of the EU member countries relevant to the Republic of Croatia, choosing of key examples (the comparative analysis, evaluation);
  • analysis of the chosen EU member countries and identification of the solutions and applicable models for the Republic of Croatia, particularly in regard to wage levels in central government and local and regional self-government (wage levels, wages in relation to overall revenues and expenses, the pay and benefit system in local and regional self-government units in relation to the pay and benefit system in the private sector and in central government bodies), in relation to specific circumstances of the Republic of Croatia and European self-government principles (benchmarking);
  • analysis and review of all existing projects on pay and benefit systems in the local and regional self-government units, as well as in the central government in the Republic of Croatia (review of the results, consultations);
  • analysis of the relevant available data bases on the pay and benefit system in the local and regional self-government units and in the central government of the Republic of Croatia (comparative analysis of existing results /recommendations);
  • agreement on the local and regional self-government pay and benefit data base for the station of the Republic of Croatia and its verification as a base for the analysis (designing, testing);
  • preparation of the proposal on collecting the necessary data related to the pay and benefit system in the local and regional self-government units ( questionnaire designing and testing);
  • establishment of the processes related to collection of the necessary information (support of the CSOA, the Local and regional self-government units association);
• elaboration of the Report.

Phase II – Review of the pay and benefit system in the local and regional self-government units and in the central government of the Republic of Croatia and relations with the EU member countries – by the end of September, 2008

• • development of the final proposal (model) of the pay and benefits data base in the local and regional self-government units;
  • development of the final proposal for collecting the necessary data on the pay and benefits system in the local and regional self-government units (questionnaire designing and testing);
  • organisation of a workshop for the representatives of the local and regional self-government units, of the CSOA and of the World Bank, with the aim of achieving understanding and receiving the necessary support for the realisation of the project (interactive participation, partnership, creation of the image of „participants’ project ownership”) – optional;
  • collection, processing and checking the extra information related to the pay and benefit system in the local and regional self-government units (interviews where necessary);
  • review of the pay and benefit system in the local and regional self-government units (comparative analysis with the level of wages in the central government);
  • review of benefits (compensations, bonuses, privileges, social privileges) and their relation with the individual wages, as well as the elaboration of a comparative analysis in regard to the private sector and the central government;
  • comparison of the pay and benefit system of the local and regional self-government units in the Republic of Croatia with the systems of the EU member countries (relevant for the Republic of Croatia) and the possibilities for the exchange of experience with the EU member states (benchmarking);
  • presentation of the results to the CSOA working group (interactive participation);
  • organisation of a workshop for the representatives of the local and regional self-government units, of the CSOA and of the World Bank to present the results of the review and proposals for the reform of the pay and benefit system in the local and regional self-government units (interactive participation, partnership, readiness change);
  • elaboration of the Report.

Phase III – Proposals – by the end of March, 2008

• • drafting of recommendations for the local and regional self-government units pay and benefit system reform which is compatible with the payment system in EU member countries and with the draft proposal of the civil service payment system in the Republic of Croatia;
  • analysis of the differences between the current model and the recommendation for the pay and benefit system in local and regional self-government units (comparative analysis, feasibility analysis);
  • organisation of workshop for the representatives of the local and regional self-government units, the CSOA and the World Bank with the aim of presenting the new proposed model (interactive participation, partnership, commitment to change);
  • elaboration of the final recommendations for the pay and benefit system in the local and regional self-government units, compatible with the payment system in EU member countries and the draft proposal of the civil service payment system in the Republic of Croatia;
  • elaboration of a proposal for the unique system of classification of working positions in local and regional self-government units which include the current activities of the reform prepared for the level of state administration bodies;
  • elaboration of the proposal for the unique system of working positions classification in local and regional self-government units;
  • elaboration of a final proposal for the unique system of classification of working positions in the local and regional self-government units;
  • elaboration of the final Report.