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Greek Finance Minister suggests a payment system based on public sector employees’ performance

The minister believes that “ it could contribute significantly to the effectiveness and efficiency of public services and institutions”

Newsroom May 27 01:12

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Finance Minister Yannis Stournaras said that he was in favour of implementing a system of payments based on the performance of public sector emoloyees, according to a document sent to the Parliament in response to the question posed by independent MPs Nikos Nikolopoulos and Yannis Kourakis.

He also added that if implemented carefully, it could contribute significantly to the effectiveness and efficiency of public services and institutions.

“The implementation of a carefully designed, dynamic and flexible, adapted to the Greek fiscal reality payment system for the public sector employees, which is based on the best examples in the public and private sectors internationally, can contribute significantly to improving the effectiveness and efficiency of public services and institutions,” Stournaras noted.

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However, the question of the two MPs concerned the salary of the General Secretary of Public Revenue Charis Theocharis the amount of which is determined by ministerial decision and depends on the state revenue from taxes.

Mr Kourakos and Mr Nikolopoulos argue that this decision has moral and political risks since “in a country of deep recession where unemployment has exceeded 30% , salaries and pensions decreased by 60 % compared to 2009, the welfare state is a theoretical outline and households living below the poverty line exceed 1 million, is at least provocative to provide additional payments to state officers,”.

As for the above, Mr Stournaras explained that the law provides a monthly salary of up to 4,750 euros for Mr Theocharis. According to the relevant table, General Secretary of Public Revenue receives 3,450 euros as a basic salary, 1,000 euros as a position allowance and 300 euros for representation expenses while 1,304.35 euros is the employer’s contribution.

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