IMF How To Notes

How to Set Compensation for Government Employees

ByCeline Thevenot, Sébastien Walker

April 4, 2024

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Format: Chicago

Celine Thevenot, and Sébastien Walker. "How to Set Compensation for Government Employees", IMF How To Notes 2024, 003 (2024), accessed 12/13/2025, https://doi.org/10.5089/9798400272653.061

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Summary

Government compensation-setting should be informed by the monitoring of trends in recruitment and retention and benchmarking against the private sector. Unduly high compensation is an inefficient use of resources, while insufficient compensation can hinder efforts to recruit, retain, and motivate the workforce needed to deliver adequate public services. Analyzing these factors at a granular level, for example, by occupation or position, can help to identify specific challenges.

Subject: Bonuses, Economic sectors, Labor, Non-wage benefits, Public employment, Wages

Keywords: allowances and benefits, Bonuses, compensation, Global, government employee, government employment, government-private sector compensation premium, Non-wage benefits, pay structure, performance-related compensation, Public employment, salaries, salary share, share of compensation, Wages