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This review of the Slovenian public sector salary system was requested by the Government of Slovenia as part of a broader OECD Public Governance Review of Slovenia. To increase its efficiency and effectiveness, the public administration needs to have staff in the right place at the right time and with the right skills, motivated to perform. The public sector salary system provides the backbone for helping to achieve this. This review analyses the current system and makes recommendations for further reform.
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Slovenia recently implemented a new coherent public sector salary system, after drawn out negotiations with representative trade unions for public employees. The government was innovative and resourceful in the way it managed both the reform process and the required bargaining. The new system is an improvement and an achievement.
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Slovenia has enjoyed successful economic development, but its economic and fiscal outlook has become worrying, urging calls for further fiscal consolidation. Against the backdrop of fiscal tightening, the Slovenian public administration is being asked to increase the efficiency and effectiveness of its operations. This chapter sets the macro fiscal context, which is important to provide context for the salary system reform and its contribution to fiscal consolidation.
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Slovenia implemented a new public sector salary system in 2008. Negotiations for the new system were long and the reform process was complex. Implementation of the reform was further complicated by the unexpected deterioration of Slovenia’s economic growth and public finances, necessitating a temporary freeze to some provisions in the new system. This chapter explains the current public sector salary system and its evolution.
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The recent reform of the public sector salary system provides a necessary foundation; however, further reform is needed. Slovenia faces a number of contextual challenges on its path to a modernised public sector salary system. This last chapter sets out the specific findings of the review and makes proposals for the way forward.
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