World Bank2014-08-142014-08-142014-05https://hdl.handle.net/10986/19309Restraining the growing wage bill expenditures while enhancing the performance of the public sector remains one of the government's major development priorities. Wage bill levels in the Kyrgyz Republic are high compared to the majority of Europe and Central Asia (ECA) countries, constituting almost one third of government expenditures. Over the last few years, the government has undertaken important steps towards enhancing pay systems and improving competitiveness of pay in public health and education sectors accounting for almost 66 percent of the wage bill. The Kyrgyz Republic confronts the need to restrain its public wage bill as part of its mid-term fiscal strategy, as well as the need to improve the performance of the public sector. The analysis, undertaken in this policy note, suggests that the government should consider the following measures and reforms: improve predictability of the wage bill and avoid further ad hoc increase in wages; moderate and gradual consolidation of employment; any increase of the base pay elements has to be linked to modest and gradual consolidation of public sector employment, and should be limited to inflation as needed; establishment controls need to be strengthened through sound monitoring of the number of employees and payroll in all parts of the public sector; and civil service pay reform has to be undertaken with a unified pay system, gradually introduced at all levels of the government. This note discusses public sector wage management in the Kyrgyz Republic, by analyzing wage bill expenditure levels over the last decade with a closer examination of dynamics in 2008-2011.en-USCC BY 3.0 IGOACCOUNTABILITYACCOUNTABILITY PROBLEMSACCOUNTINGACCOUNTING SYSTEMAGGREGATE CONTROLAVERAGE WAGEAVERAGE WAGESBASELINE SCENARIOBUDGET ALLOCATIONSBUDGET CONSTRAINTSBUDGET DATABUDGET ESTIMATESBUDGET HOLDERSBUDGET ORGANIZATIONSBUDGET REQUESTSBUDGET RESOURCESBUDGET YEARCAPACITY BUILDINGCENTRAL CONTROLSCENTRAL GOVERNMENTCITIESCIVIL SERVANTSCIVIL SERVICECIVIL SERVICE LAWCIVIL SERVICE PAYCIVIL SERVICE REFORMCIVIL SERVICE SALARIESCLINICSDECISION-MAKINGDEVOLUTIONDRIVERSECONOMIC CONDITIONSECONOMIC DOWNTURNECONOMIC PERFORMANCEEDUCATION SERVICESEDUCATION SPENDINGEDUCATION SYSTEMEMPLOYEEEMPLOYMENT GROWTHEMPLOYMENT LEVELSEMPLOYMENT REDUCTIONEMPLOYMENT TRENDSEXCHANGE RATEEXPENDITURE LEVELSEXPENDITURESEXTERNAL IMBALANCESFINANCIAL MANAGEMENTFINANCIAL REPORTINGFISCAL CAPACITYFISCAL CONSTRAINTSFISCAL HEALTHFISCAL IMPACTFISCAL IMPLICATIONSFISCAL PRESSUREFISCAL PROJECTIONSFISCAL STRATEGYFISCAL SUSTAINABILITYGOVERNMENT EMPLOYEESGOVERNMENT EMPLOYMENTGOVERNMENT EXPENDITUREGOVERNMENT EXPENDITURESGOVERNMENT FINANCEGOVERNMENT FINANCE STATISTICSGOVERNMENT POLICYGOVERNMENT PRIORITIESGOVERNMENT SPENDINGHARD BUDGET CONSTRAINTHARD BUDGET CONSTRAINTSHEALTH CENTERSHEALTH EDUCATIONHEALTH EXPENDITURESHEALTH INSURANCEHEALTH MANAGEMENTHEALTH POLICYHEALTH SECTORHEALTH SERVICESHEALTH SYSTEMSHIGH WAGEHIGHER INFLATIONHOSPITALSHOUSINGHUMAN CAPITALHUMAN RESOURCEHUMAN RESOURCE MANAGEMENTHUMAN RESOURCESINCOMEINFLATIONINFLATION RATEINTERGOVERNMENTAL TRANSFERSJOB SECURITYJOBSLABOR MARKETLABOURLOCAL GOVERNMENTLOCAL GOVERNMENTSMACROECONOMIC CONSTRAINTSMANAGEMENT RESPONSIBILITIESMINISTRY OF ECONOMYMINISTRY OF FINANCEMUNICIPAL EMPLOYEESMUNICIPALITYNURSESOCCUPATIONSPATIENTPENSION FUNDPERFORMANCE CULTUREPERFORMANCE MONITORINGPERFORMANCE MONITORING SYSTEMSPERVERSE INCENTIVESPHARMACISTSPHYSICIANSPOVERTY REDUCTIONPRIMARY EDUCATIONPRIMARY SCHOOLPRIMARY SCHOOLSPRIVATE COMPANIESPRIVATE SECTORPRIVATE SECTOR WAGEPRODUCTION FUNCTIONPRODUCTIVITY GROWTHPROGRAM COSTSPROGRAMSPUBLICPUBLIC ADMINISTRATIONPUBLIC ADMINISTRATION REFORMPUBLIC EDUCATIONPUBLIC EMPLOYMENTPUBLIC EXPENDITUREPUBLIC EXPENDITURE POLICYPUBLIC EXPENDITURE REVIEWPUBLIC EXPENDITURE TRACKINGPUBLIC FINANCEPUBLIC HEALTHPUBLIC HEALTH ORGANIZATIONSPUBLIC INVESTMENTSPUBLIC ORGANIZATIONSPUBLIC RESOURCESPUBLIC SECTORPUBLIC SECTOR EMPLOYEESPUBLIC SECTOR EMPLOYMENTPUBLIC SECTOR MANAGEMENTPUBLIC SECTOR ORGANIZATIONSPUBLIC SECTOR PAYPUBLIC SECTOR SERVICE DELIVERYPUBLIC SECTOR STAFFPUBLIC SECTOR WAGEPUBLIC SECTOR WAGE BILLPUBLIC SECTOR WAGESPUBLIC SECTORSPUBLIC SERVICESPUBLIC SPENDINGPUBLIC WAGEQUALITY ASSURANCEQUALITY OF SERVICESREAL GROWTHREFORM AGENDAREFORM PROCESSRESEARCH CENTERSRETIREMENTRUNNING COSTSSAVINGSSECONDARY SCHOOLSSERVICE DELIVERYSEVERANCE PAYMENTSSOCIAL CONTRIBUTIONSSOCIAL PROTECTIONSOCIAL SECURITYSOCIAL SECURITY FUNDSSOCIAL SERVICESSTATE BUDGETSTATE TREASURYSTRUCTURAL REFORMSTRUCTURAL REFORMSTAXTOTAL EMPLOYMENTTOTAL EXPENDITURESTOTAL PUBLIC SECTORTOTAL WAGETRAINING PROGRAMSTRANSPARENCYUNEMPLOYMENTURBAN AREASWAGE BILLWAGE EXPENDITURESWAGE GROWTHWAGE LEVELWAGE LEVELSWORK EXPERIENCEWORKERSWORKING CONDITIONWORKING CONDITIONSWORKING EXPERIENCE10.1596/19309