Phasing out salary top-ups

1
Phasing out salary top-ups

• George Yambesi
• Director Policy Development
• Presidents Office Public Service Management
• Tanzania

2
Local Cost CompensationDrawbacks

• Varied practices among donors
• Selection of recipients non-transparent
  non-merit based
• No relationship to affordability
• Capacity drain from core public service

3
Pay Reform vs Selective Accelerated Salary
Enhancement

• A gradual approach to pay reform not consistent
  to improving performance and capacity in short
  term.
• Salary top up not ideal only short term measure.
• Quick and full implementation of pay policy and
  strategy costing solution to improving pay and
  eradicating top ups.

4
Selective Accelerated Salary Enhancement

• SASE replaces LCC
• Targets personnel with greatest impact on service
  delivery
• Transparent selection of recipients
• Linked to medium-term pay policy and targets

5
SASE Selection Criteria

• Ministry is implementing a performance
  improvement model
• Positions are selected on the basis of the
  strategic plan
• Use of open performance appraisal to decide on
  continuation or removal

6
Tanzanias Performance Improvement Model (PIM)
STRATEGIC PLANNING
ANNUAL PLANNING PERFORMANCE BUDGETING

• Services Delivery Options
• Decentralization Private Sector Participation
  Plans
• Efficiency Improvements
• Capacity Building Plan
• New Policy Environment
• Performance Benchmarks
• Strategic Plan Budget

Mission Vision National and Sectoral Goals and
Priorities MTEF

• Implementation of restructuring and
  decentralization
• Capacity Building
• Incentives for Performance
• Proposal for PIF support

Gap Analysis
EVALUATIONS OF PLANS Review and endorsement of
plans and budgets
MONITORING, EVALUATION AND REPORTING
Reviews Repeat Client Surveys Audits Staff
Perfomal Appraisals
EXECUTION PLANS
Deploy resources from PIF and appropriations Take
action, track status and communicate progress
7
SASE Approval Process

• JIPRC approves annually overall SASE envelope
• Ministry identifies recipients based on criteria
  and submit proposal to PIU
• PIU reviews applications for completeness and
  submit to IMWG
• IMWG approves, endorses or rejects continuation
  annually

8
Progress to date

• 1510 staff in 4 MDAs (target 10,000
  professionals)
• So far 9.0 M available against 38.0M required
• Constraints
• Pace of implementatioin of PIM
• Inadequacy of financial resources
• Difference of interpretation of criteria across
  MDAs
• MDAs want more!

9
Key Challenges

• Politics matters!
• Sustaining GOT commitment to implementation of
  the MTPRS
• In the short-term securing enough resources for
  SASE to cover all MDAs

10
Wage Bill Trends
11
Trends in Average Salary
12
BRIDGING THE GAP