Remuneration Tribunal & Public Sector Remuneration in Samoa RT & Pubic Sector Remuneration in Samoa The Remuneration Tribunal What? Statutory Body established under the Remuneration Tribunal Act 2003 Who? 3 members appointed for 3-year term, renewable serve on a part-time basis Function? Sept 2013 Advise Cabinet on the Remuneration of holders of “public offices” and of “other offices included in the Schedule to the Act” © Remuneration Tribunal, Samoa 2 RT & Public Sector Remuneration in Samoa Remuneration Tribunal Act Covers: holders of “public offices”: (defined in the Act) PM, D/PM, Ministers, Speaker, Assoc Mins, L/Opp, D/Speaker, MPs, Ombuds., MinCEOs, P/Servants and others holders of “other offices”: (identified in schedule) Offices in statutory corporations and other statutory bodies i.e. all public sector offices not defined in the Act Essentially the Act covers every established office and position of employment in the public sector Sept 2013 © Remuneration Tribunal, Samoa 3 RT & Public Sector Remuneration in Samoa Constitution & State Organisation The Constitution Legislative Assembly Judiciary Cabinet The RT Act is concerned with the offices in these institutions and with the positions of employment in the organisations that support them Sept 2013 © Remuneration Tribunal, Samoa 4 RT & Public Sector Remuneration in Samoa Background to RT Establishment Factors & Circumstances: Economic Devastation of early 1990s Economic Restructuring – Strategic Planning for Development – Public Sector Reform Freeze on Public Sector Salaries Annual increments suspended Sept 2013 © Remuneraton Tribunal, Samoa 5 RT & Public Sector Remuneration in Samoa Background to RT Establishment Strategic Planning Vision: Better quality of life for every Samoan Fundamental Principle: Private Sector the Engine of Development & Growth Role of Public Sector: Provide Enabling Environment for Private Sector Sept 2013 © Remuneraton Tribunal, Samoa 6 RT & Public Sector Remuneration in Samoa Background to RT Establishment Priority Goals Stable Macroeconomic Framework Improve Social Sector Development Develop Infrastructure & Utilities Develop Economic Sectors Reform Public Sector Sept 2013 © Remuneraton Tribunal, Samoa 7 RT & Public Sector Remuneration in Samoa Need for Remuneration Tribunal Previous Source of Advice: • • • • • Parliament, Judiciary & Cabinet Statutory Authorities & Boards Public Service SOEs & Other PS Organisations Ministry CEOs & Heads of Statutory Organisations Having several different sources of advice and many employing authorities has led to a variety of pay systems and inconsistent remuneration standards in the public sector Sept 2013 © Remuneration Tribunal, Samoa 8 RT & Public Sector Remuneration in Samoa Unifying Remuneration Framework Guiding Principles Transparency: establish clear meaning of key terms ‘salary’, ‘allowance’, 'benefit’ etc Pay Equivalence: equal pay for equal jobs Fair Pay:agree/establish factors that determine pay Benchmarking: apply an internationally recognised and defensible scheme Affordability: Keep costs to within existing revenue means Sept 2013 © Remuneration Tribunal, Samoa 9 RT & Public Sector Remuneration in Samoa Developing Unifying Framework Principle: Transparency (establish clear meaning of key terms) Remuneration: salary/wages, allowance & benefits Total Remuneration Package (TRP): TRP = base salary(old) + allowance(old) + benefit Base Salary(new) = base salary(old) + allowance(old) + at TRP(new) = base salary(new) + benefit Sept 2013 © Remuneration Tribunal, Samoa 10 RT & Public Sector Remuneration in Samoa Developing Unifying Framework Principle: Pay Equivalence Equal Pay for Equal Job Gender Equality Same pay for same or closely similar jobs/positions irrespective of location in Public Sector Sept 2013 © Remuneraton Tribunal, Samoa 11 RT & Public Sector Remuneration in Samoa Developing Unifying Framework Principle: Fair and Reasonable Pay Factors that Normally Affect Pay Job Value Marketplace Job Evaluation/Sizing Labour Market Analysis Ability To Pay Sept 2013 Performance © Remuneraton Tribunal, Samoa 12 RT & Public Sector Remuneration in Samoa Developing Unifying Framework Benchmarking: Apply recognised & defensible scheme We used the Commonwealth Parliamentary Association (CPA) A Survey of Remuneration paid to Members of Parliaments and Legislatures of the Commonwealth, 2000-2001 PM top peg Benchmark Parliamentary and Exec Offices Benchmark other offices • Current relativities with P/E Offices • Modified by RT Sept 2013 © Remuneraton Tribunal, Samoa 13 RT & Public Sector Remuneration in Samoa Developing a Unifying Framework Principal: Affordable & Sustainable Keep Costs within existing Revenue measures • Encourage Savings & Minimise Waste • Improve Revenue Collection Maintain optimum share of Salaries & Sept 2013 Wages in Budget Regular review of CPI and effect on PS salaries & wages © Remuneraton Tribunal, Samoa 14 Public Sector Remuneration in Samoa THE END