Republic of Tajikistan Public Sector Pay Reform : Policy Note on Medium-Term Pay Reform in Public Sector, Volume 2. Background Note

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Washington, DC

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This part of the public sector pay reform policy note represents a summary of main messages and findings of the report. The report also provides the summary of simulations for various policy scenarios; it is not imperative that quantitative parameters of policy actions (for example, base pay levels, etc.) should be exactly the same as in the policy note, actual numbers may change depending on available fiscal space by the time when final decision is taken vis-a-vis pay increase. Summary of recommendations is provided in annex two; by the time when the report was ready for publication, the Government already took actions to address immediate objectives of the pay reform agenda in public sector; it issued a decree to increase pay levels for civil servants, education and health sector workers as well as other social sector workers. In general, the decree was consistent with overall immediate objectives of pay reform in public service. Public sector wage reform is a key aspect of the reform agenda in Tajikistan. The strong erosion of real wages, as a consequence of the civil war and the collapse of the economy in the 1990s, and very limited employment opportunities in the country combined with increasing opportunities for labor migration, as a consequence of growing economies in Kazakhstan and Russia, have led to a large outflow of qualified personnel in the public service. At the same time, these sectors are crucial to the achievement of Millennium Development Goals (MDGs) and for ensuring sustainable growth. The public sector continued to provide a quarter of employment (25 percent) over the last seven years. Job creation in the economy was very marginal. It is very likely that the public sector will continue be one of the major employers in the local labor market in medium term. The policy note focuses on civil service, education, health, social protection, science, culture, and sport, sectors with a very uneven reform background and different starting points. The policy note attaches special emphasis on state of play in these sectors and explores options that could encompass policy decisions of the authorities in a three- to five-year timeframe.

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ACADEMIC YEAR, ACCOUNTING, ADDITIONAL INCOME, ANNUAL WAGE, APR, AVERAGE CLASS SIZE, AVERAGE WAGE, BALANCE OF PAYMENTS, BALANCED BUDGET, BANKS, BASE WAGE, BOARDING, BOARDING SCHOOLS, BORROWING, BRAIN DRAIN, BUDGET PLANNING, BUDGETING, BUSINESS CLIMATE, CALCULATION, CALCULATIONS, CAPACITY BUILDING, CAPITAL EXPENDITURES, CAREER, CAREER DEVELOPMENT, CAREER OPPORTUNITIES, CASH FLOW, CHECKS, CIVIL SERVANT, CIVIL SERVANTS, CIVIL SERVICE, CLASS SIZE, CLINICS, COLLATERAL, COLLEGE DEGREE, COLLEGE EDUCATION, COLLEGES, CONTRIBUTIONS, CORRUPTION, CREDITOR, CREDITS, CURRICULUM, DEBT, DECISION MAKING, DENTAL HEALTH, DENTAL HEALTH CARE, DISCIPLINES, EARNINGS, ECONOMIC DEVELOPMENT, ECONOMIC DEVELOPMENTS, ECONOMIC MANAGEMENT, EDUCATION SECTOR, EDUCATIONAL INSTITUTIONS, EMPLOYMENT, ENROLLMENT, EXCHANGE RATE, FINANCES, FINANCIAL INSTITUTION, FINANCIAL MANAGEMENT, FINANCIAL NEEDS, FINANCIAL SECTOR, FISCAL DEFICIT, FISCAL PERFORMANCE, FISCAL SUSTAINABILITY, FORMULA FUNDING, GENERAL EDUCATION, GHOST WORKERS, HEALTH CARE, HIGHER EDUCATION, HOSPITALS, INCOME, INFLATION, INFRASTRUCTURE INVESTMENTS, INSTITUTIONAL REFORMS, INSTITUTIONALIZATION, INSTRUCTION, INTEREST PAYMENTS, INTERNAL BRAIN DRAIN, INVESTMENT PROGRAM, JOB CREATION, JOB LEVEL, LABOR MARKET, LAW ENFORCEMENT, LAWS, LEADERSHIP, LEGAL FRAMEWORK, LITERATURE, LOAN, LOCAL GOVERNMENT, LOCAL LABOR MARKET, MARKETING, MATHEMATICS, MEDICAL CARE, MEDICAL COLLEGES, MEDICAL EDUCATION, MEDICAL UNIVERSITY, MIGRATION, MINIMUM WAGE, MINISTRY OF EDUCATION, MONEY SUPPLY, NATIONAL BANK, NATIONAL ECONOMY, NEW JOB, NONGOVERNMENTAL ORGANIZATIONS, PATIENTS, PAYROLL SYSTEM, PENSION, PERFORMANCE INDICATORS, PHYSICIANS, POLICY DOCUMENT, PRESCHOOL EDUCATION, PRIMARY GRADES, PRIMARY HEALTH CARE, PRIMARY SCHOOL, PRIMARY SCHOOL TEACHERS, PRIVATE INVESTMENT, PRIVATE SECTOR INVOLVEMENT, PUBLIC EXPENDITURE, PUBLIC GOODS, PUBLIC HEALTH, PUBLIC INSTITUTIONS, PUBLIC INVESTMENT, PUBLIC SERVICES, QUALIFIED TEACHERS, QUALITY OF EDUCATION, QUESTIONNAIRE, RAPID GROWTH, RESOURCE ALLOCATIONS, RESPONSIBILITIES, SALARIES, SALARY, SALARY SUPPLEMENTS, SAVINGS, SCHOOL PRINCIPALS, SCHOOLS, SECONDARY EDUCATION, SENIOR, SOCIAL PROTECTION, TEACHER, TEACHERS, TEACHING, TECHNICAL ASSISTANCE, TRADE UNION, TRANSACTION, UNIVERSITIES, UNIVERSITY DEGREE, UNIVERSITY EDUCATION, UNIVERSITY GRADUATES, UNIVERSITY STAFF, VALUABLE, VOCATIONAL EDUCATION, VOCATIONAL SCHOOLS, WAGE, WAGES, WORKERS, YEARS OF SERVICE

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