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PROFESSIONAL AND PROFESSIONAL AND TECHNICAL STAFF TECHNICAL STAFF
5. Department with responsibility for HR policy
The HR policy of the public service is organized mostly centrally, whereby (a) the Public Administration and Personnel Department (which falls under the competence of the Ministry of Finance) bears the responsibility of formulating and implementing the advisable human resource policies of the public service and the wider public sector, and (b) the Public Service Commission, an independent authority based on the Constitution as well as the Public Service Law of 1990 to 2011, has the duty of appointing, confirming, employing on the permanent establishment, promoting, transferring, seconding, retiring and exercising disciplinary control over, including dismissal or compulsory retirement of public officers.
6. Current HR reforms
The reform of the state public administration is an ongoing process. In recent years, various measures (economic and other) have been promoted by the Ministry of Finance, with the aim to reduce government spending but also to modernize/reform the public sector and improve its productivity and general operation. The main reforms that have taken place since 2009 (including ongoing measures) include the following:
Rates of Pay
Freeze of wages and pensions: suspension of annual salary increases from 2012 until 2016 for employees in the public service and the broad public sector employees and state officials and suspension of salary increases according to Cost Of Living Adjustment (COLA) from 2012 until 2015 for public sector employees and pensioners
Implementation of a scaled reduction in the emoluments of employees in the public service and the broad public sector and in the pensions of the respective pensioners as follows: €0‐1000:0%,
€1001‐1500: 6.5%, €1501‐2000:8.5%, €2001‐3000:9.5%, €3001‐4000:11.5%, over €4001:12.5%, since 1.12.2012. A further reduction, by a flat rate reduction of 3%, will be imposed from 1.1.2014
Introduction of a temporary scaled contribution on gross earnings of public (and private) sector employees including state officials and on the pensions of corresponding pensioners as follows:
(i) from 1.1.2012 until 31.12.2013 €0 – 2,500: 0%, €2,501 – 3,500: 2.5%, €3,501 – 4,500: 3.0% and over €4,501: 3.5%,
(ii) from 1.1.2014 until 31.12.2016 €0 – 1,500: 0%, €1,501 – 2,500: 2.5%, €2,501 – 3,500: 3.0% and over €3,501: 3.5%.
Reduction of the starting salary of newly hired employees in the public sector by 10%
Abolishment of certain allowances and reduction of others by 15%, including overtime compensation
Reduction of overtime compensation by giving priority to compensation in time off instead of monetary compensation and by compensating overtime according to the salary of the lowest post that can execute a task
Pensions
Introduction of legislative provisions regarding the reform of occupational pension benefits, including the following:
(a) For public service employees and employees of the broad public sector
The occupational pension scheme is closed to public officers appointed after the 30th of September 2011
Since 2011, employees contribute 3% of their pensionable emoluments for the sustainability of the occupational pension scheme whereas previously the scheme was a non‐contributory one
Gradual increase of the statutory retirement age by 2 years‐from 63 to 65‐ by 2016 (six months per year); increase of the minimum age for entitlement to pension/gratuity by 6 months per year; introduction of an early retirement penalty of 0.5% per month of early retirement so as to make early retirement actuarially neutral
Automatic adjustment of the statutory retirement age every 5 years in line with changes in life expectancy at the statutory retirement age (first period: 2018‐2023)
Change in the method of calculation of pension/gratuity benefits for service after 1.1.2013 so that it is based on career average salaries, while acquired rights (for service up to 1.1.2013) are preserved and pension/gratuity are calculated based on employee’s pensionable emoluments on the date of his retirement
Lump‐sum payment for service after 1.1.2013 will be taxable as personal income with an option of transforming the whole amount or part of this amount into an actuarially neutral annuity
Change of indexation of all benefits from wages to prices
Reduction in preferential treatment of specific groups of employees, like members of the army and police force
Increase in contributions for the widows/orphans pension fund from 0.75% of the annual pensionable emoluments of the contributor up to the amount equal to insurable emoluments, as prescribed by social insurance legislation, and 1,75% on any amount of pensionable emoluments exceeding the amount of insurable earnings to 2% since 2011. In addition, the contributions to the widows and orphans fund are no longer reimbursable
Abolishment of the provision according to which in the case of death of an employee, if the deceased had a wife/husband at the time of his/her retirement and thereafter he/she remarried, his/her last wife/husband is considered as a widow/widower. With the abolition of this provision, the second wife/husband will not be considered as widow/widower thus she/he will not be entitled to pension
(b) For State Officials
Introduction of a contribution of 6.8% on pensionable earnings for officers who are not covered by the government's pension scheme or any other similar scheme
Increase in contributions for widows/orphans pension from 0.75% of the annual pensionable emoluments of the contributor up to the amount equal to insurable emoluments, as prescribed by social insurance legislation, and 1,75% on any amount of pensionable emoluments exceeding the amount of insurable earnings to 3%
Introduction of provisions according to which it is no longer possible to earn pension and salary at the same time. In case that a pensioner is elected by the public or appointed to an office, his pension is frozen and is paid as soon as the completion of his/her service. If the salary is less than the pension, the difference is added to the salary
Virtual service is not taken into account for calculating the pension benefits of individuals elected by the public or appointed to an office after the 6 of May 2011
If an individual has served in more than one state office, the total of his pensions cannot exceed one half of his highest annual pensionable emoluments
Other reform measures
Reduction of employment in the Public Sector:
Adoption of a policy for the abolition of permanent posts, including hourly‐paid employees’ posts by a total of 5000 by 2016 (over 1500 posts have already been abolished since 2010)
Hiring freeze for vacant first‐entry and first entry and promotion posts (permanent posts), for hourly‐paid employees’ posts and for casual staff, across the public service and the broad public sector
Reform of the legislative framework that regulates the hiring of casual staff in the public service, including the termination of hiring such employees, with very few exceptions
Reinforcing/facilitating mobility within the public service with the introduction of measures related to (a) the possibility of “duty assignment” by the Permanent for non‐Interchangeable staff , (b) decentralization of the management of Interchangeable staff, (c) design of Casual Employees Transfer System
Enhancing strategic and management skills: implementation of 2 co‐funded (ESF) Training Projects (a) for strengthening the strategic, leadership and management capacity of the Public Administration (timeframe 2009‐2015) and (b) for strengthening the management and leadership capacity of local self‐government organizations (timeframe 2009‐2014)
Strengthening the learning capacity of public service organizations though, among others, the creation of a Learning Unit in each public service organization aiming to provide systematic management of the learning function in their organization, on the basis of a learning policy to be drawn by the organizations’ Director in co‐operation with the Learning Co‐ordinator
Enhancing the Administrative Capacity of Public Service Departments‐Implementation of the co‐
funded (ESF) Project for the Reorganization and Improvement of the Administrative Capacity of the Public Service (timeframe 2008‐2015)
Change in business hours in the public service by applying non‐stop working hours and
extending the daily working hours by 1/2 hour, with the possibility of up to 1 hour flexible arrival/departure, aiming to reduce the need for overtime work (there is no change in the total number of working hours per week)
Expansion of One‐Stop‐Shops and the services offered by them, as a means of enhancing the quality of services provided to citizens
Modernization of Job Schemes (Job Descriptions)
Stimulating eGovernment