IDEAS home Printed from https://ideas.repec.org/a/rom/rampas/v2021y2021i36p49-66.html
   My bibliography  Save this article

The Effects Of The Implementation Of Law No. 153/2017 On The Unitary Remuneration Of Personnel Paid From Public Funds

Author

Listed:
  • Constantin Marius PROFIROIU

    (Department of Administration and Public Management, Bucharest University of Economic Studies, Bucharest, Romania)

  • Tudorel ANDREI

    (Department of Administration and Public Management, Bucharest University of Economic Studies, Bucharest, Romania)

  • Drago? DINCA

    (The National University of Political Studies and Public Administration, Bucharest, Romania)

Abstract

Regarding remuneration, the last 20 years in the Romanian public sector have been marked by extensive debates on the discrepancies between the incomes of the different categories of public personnel, the differences in the application of the legal framework, as well as the lack of correlation between the results of individual work performance and the level of remuneration. The low level of remuneration and the lack of legal forms for rewarding public personnel for their achievements as a form of developing motivation, led to low performance in the public sector. In 2017, the Romanian authorities conducted a reform regarding public personnel remuneration through the adoption of Law no. 153/2017 on the unitary remuneration of the personnel paid from public funds. The purpose of the mentioned law was to ensure a uniform remuneration framework in the public sector by applying clearly formulated principles and criteria as well as to decentralize the decisions taken in this area. From this perspective, the purpose of the present study is to analyze the impact of the implementation of Law no. 153/2017 on the unitary remuneration of the personnel paid from public funds from the perspective of its application, its effects, and the correlation of individual performance with the level of payment. Within the framework of the research, the process of applying the new rules, the principles underlying the new payment system, the criteria for adopting the new payment system, the level of income increases, the correlation between civil servants’ activities and the level of remuneration as well as, the objectivity of the individual evaluations were considered. The research methodology consists of an opinion survey conducted in public administration institutions using as a research instrument, a self-administered questionnaire where 320 civil servants participated. The study revealed a high degree of dissatisfaction among civil servants regarding the new remuneration system as well as the existence of certain factors that are more relevant and important than the income level, for developing civil servants’ motivation, such as the hierarchical superiors’ attitudes and the appreciation expressed by the beneficiaries of the provided services. The study also revealed that the current remuneration system does not support sufficiently the modernization process in the public administration and more than that, it led to an increase in the costs of implementing the regulations of the normative act because a significant proportion of public servants have contested in court the manner in which this law was applied.

Suggested Citation

  • Constantin Marius PROFIROIU & Tudorel ANDREI & Drago? DINCA, 2021. "The Effects Of The Implementation Of Law No. 153/2017 On The Unitary Remuneration Of Personnel Paid From Public Funds," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2021(36), pages 49-66, June.
    • Handle: RePEc:rom:rampas:v:2021:y:2021:i:36:p:49-66
    as

    Download full text from publisher

    File URL: https://ramp.ase.ro/_data/files/articole/2021/36-03.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Tudorel Andrei & Marius Profiroiu & Bogdan Oancea & Monica Nedelcu, 2009. "Considerations on the Remuneration System of the Public Administration – an Analysis on Electoral Cycles and Scenarios Development," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 3(03(532)), pages 57-70, March.
    2. Bill Monks, 2013. "Public Sector Payroll Management," Palgrave Macmillan Books, in: Richard Allen & Richard Hemming & Barry H. Potter (ed.), The International Handbook of Public Financial Management, chapter 15, pages 336-354, Palgrave Macmillan.
    3. Pérez, Javier J. & Giordano, Raffaela & Depalo, Domenico & Coutinho Pereira, Manuel & Eugène, Bruno & Papapetrou, Evangelia & Reiss, Lukas & Roter, Mojca, 2011. "The public sector pay gap in a selection of Euro area countries," Working Paper Series 1406, European Central Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alina Georgiana PROFIROIU & Oana Matilda SABIE & Roxana BRI?CARIU & Corina Cristiana NASTACA, 2021. "Work motivation and satisfaction of civil servants from Romania’s Senate," Management Research and Practice, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 13(4), pages 17-25, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Domenico Depalo & Raffaela Giordano & Evangelia Papapetrou, 2015. "Public–private wage differentials in euro-area countries: evidence from quantile decomposition analysis," Empirical Economics, Springer, vol. 49(3), pages 985-1015, November.
    2. Pedro Gomes & Zoe Kuehn, 2017. "Human capital and the size distribution of firms," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 26, pages 164-179, October.
    3. Tansel, Aysit & Keskin, Halil Ibrahim & Ozdemir, Zeynel Abidin, 2008. "Public versus Private Sector Wage Gap in Egypt: Evidence from Quantile Regression on Panel Data," MPRA Paper 89540, University Library of Munich, Germany.
    4. repec:spo:wpmain:info:hdl:2441/1frfnu9k0921o6s94ptnm0q4o is not listed on IDEAS
    5. Zhuravleva, Tatiana (Журавлева, Татьяна), 2015. "Analysis of the Factors of Wages Differentiation in the Public and Private Sectors of the Russian Economy [Анализ Факторов Дифференциации Заработной Платы В Государственном И Частном Секторах Эконо," Published Papers mn10, Russian Presidential Academy of National Economy and Public Administration.
    6. Stähler, Nikolai, 2019. "Who benefits from using property taxes to finance a labor tax wedge reduction?," Journal of Housing Economics, Elsevier, vol. 46(C).
    7. Dickson, Matt & Postel-Vinay, Fabien & Turon, Hélène, 2014. "The lifetime earnings premium in the public sector: The view from Europe," Labour Economics, Elsevier, vol. 31(C), pages 141-161.
    8. Pedro Gomes, 2018. "Heterogeneity And The Public Sector Wage Policy," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 59(3), pages 1469-1489, August.
    9. Fontaine, Idriss & Gálvez-Iniesta, Ismael & Gomes, Pedro & Vila-Martin, Diego, 2020. "Labour market flows: Accounting for the public sector," Labour Economics, Elsevier, vol. 62(C).
    10. Mariarosaria Comunale & Jeroen Hessel, 2014. "Current account imbalances in the Euro area: Competitiveness or financial cycle?," DNB Working Papers 443, Netherlands Central Bank, Research Department.
    11. Kollintzas, Tryphon & Papageorgiou, Dimitris & Vassilatos, Vanghelis, 2018. "Market and political power interactions in Greece: A theory," European Journal of Political Economy, Elsevier, vol. 53(C), pages 59-83.
    12. Geromichalos, Athanasios & Kospentaris, Ioannis, 2022. "The unintended consequences of meritocratic government hiring," European Economic Review, Elsevier, vol. 144(C).
    13. Gimpelson, Vladimir & Lukiyanova, Anna & Sharunina, Anna, 2019. "Economics and Politics of the Public-Private Wage Gap (The Case of Russia)," IZA Discussion Papers 12247, Institute of Labor Economics (IZA).
    14. Luca Marchiori & Patrice Pieretti & Benteng Zou, 2018. "Immigration, Occupational Choice and Public Employment," Annals of Economics and Statistics, GENES, issue 131, pages 83-116.
    15. Jelena Nikolic & Ivica Rubil & Iva Tomic, 2014. "Changes in Public and Private Sector Pay Structures in Two Emerging Market Economies during the Crisis," Working Papers 1403, The Institute of Economics, Zagreb.
    16. Andri Chassamboulli & Pedro Gomes, 2019. "Public-Sector Employment, Wages and Human Capital Accumulation," University of Cyprus Working Papers in Economics 07-2019, University of Cyprus Department of Economics.
    17. repec:hal:spmain:info:hdl:2441/1frfnu9k0921o6s94ptnm0q4o is not listed on IDEAS
    18. Lorenzo Forni & Natalija Novta, 2014. "Public Employment and Compensation Reform During Times of Fiscal Consolidation," IMF Working Papers 2014/192, International Monetary Fund.
    19. Lamo, Ana & Pérez, Javier J. & Schuknecht, Ludger, 2013. "Are government wages interlinked with private sector wages?," Journal of Policy Modeling, Elsevier, vol. 35(5), pages 697-712.
    20. Maria M. Campos & Domenico Depalo & Evangelia Papapetrou & Javier J. Pérez & Roberto Ramos, 2017. "Understanding the public sector pay gap," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 6(1), pages 1-29, December.
    21. Antón, José-Ignacio & Muñoz de Bustillo, Rafael, 2013. "Public-private sector wage differentials in Spain. An updated picture in the midst of the Great Recession," MPRA Paper 48897, University Library of Munich, Germany.
    22. Nikolic, Jelena & Rubil, Ivica & Tomić, Iva, 2017. "Pre-crisis reforms, austerity measures and the public-private wage gap in two emerging economies," Economic Systems, Elsevier, vol. 41(2), pages 248-265.

    More about this item

    Keywords

    public institutions; remuneration level; impact; performance;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rom:rampas:v:2021:y:2021:i:36:p:49-66. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Androniceanu Armenia (email available below). General contact details of provider: https://edirc.repec.org/data/ccasero.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.