Fiscal Impact Assessment of draft legislation on the Civil Service-Kosovo

The objective of this assignment has been to assist the Government of Kosovo in estimating the fiscal impact of implementing the pay and grading system envisaged in the draft legislation, to evaluate whether the costs of the proposal are fiscally sustainable. Type of services provided Brief review of previous studies (HELM report of 2004) undertaken on pay and grading system reform, analyzing the reasons for not implementatio Preparation of wage bill cost estimates (on the assumption of existing staffing levels) based on the new grading system defined in the draft law on Civil Service Remuneration, including by considering alternative options for salary decompression Calculation of position-specific changes in remuneration for all of civil service posts; in case of negative impact, estimate the cost of temporary compensation to be paid as a means of salary protection during a transition period Estimation of the fiscal impact of the total public sector wage bill (including ad-hoc payments identified in Task 2, above) based on the latest available data on salary structure and GoK projections of aggregate wage bill by sector for other categories of public employees (notably health workers, teachers, and police) Preparation of a flexible model to estimate on an indicative basis the medium-term fiscal impact based on expected salary progression, based on the system for salary progression (through steps) proposed in the draft legislation; these estimates should take into account major salary-related benefits (e.g. employer contributions to pensions), if appropriate, as well as the cost of compensation payments during a transition period to the new pay and grading structure