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Appendix A
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Brief Overview of Civil Service Pay Arrangements in Five Selected Countries
(compiled by the consultant appointed by the Task Force)

	Australia	Canada	New Zealand	Singapore	United Kingdom	General Observation
Commonly adopted pay policies, structures and systems						General Observation
Is pay administration devolved - - for Civil Servants ^{(see Note})?	Substantially devolved �V departments and agencies largely determine own pay policies within guidelines	No �V pay policy remains largely centrally determined (this is currently under review)	Highly devolved �V departments and agencies largely determine own pay policies within guidelines	Moderate devolution �Vsome local flexibility; central agencies remain influential	Highly devolved �V departments and agencies largely determine pay policies within guidelines	Devolvement of responsibility for pay management issues is a key thrust. Senior civil servants continue to be managed from a central point to facilitate mobility and pay control
- for Senior Civil Servants?	No - determined centrally	No - determined centrally	No - determined centrally	No - determined centrally	No - determined centrally
Are Disciplined Services handled separately for pay purposes?	Customs & Excise and Immigration treated similarly to other civil servants. Fire, Correctional and most Police Services are outside core civil service	Immigration, Police, Flying and Correctional Services are treated similarly to other civil servants. Fire and Customs & Excise are outside core civil service	Customs & Excise, Immigration, Police and Correctional Services are treated similarly to other civil servants. Fire Services are outside the core civil service	All Disciplined Service equivalents are treated broadly similar to other civil servants, although some specific arrangements apply	Customs & Excise and Immigration are treated similarly to other civil servants. Correctional Services have separate arrangements. Fire and Police are outside core civil service.	There is a wide span of arrangements for this group influenced by factors such as their legal ability to strike, need for independence, job demands & historical agreements
Are pay adjustments made by formal comparability with private sector pay?	No �V seen only as a guide to reflect market conditions	Yes - comparison by occupation	No �V seen only as a guide to reflect market conditions	Yes - competitiveness with the private sector for all jobs is seen as key to the recruitment and retention of high calibre staff	No �V seen only as a guide to support the principle of recruit, retain and motivate.	Most countries have reduced their emphasis on formal pay comparability with the private sector with affordability considerations now taking precedence
Is ��ability to pay�� a primary factor for pay adjustment?	Yes	Yes	Yes	Yes	Yes
Are educational/academic qualifications an important factor for internal relativity?	Only one of several factors	Only one of several factors	Only one of several factors	Yes	Only one of several factors	Broader job comparisons are increasingly the norm
Have allowances been rationalised/consolidated/ simplified?	Yes �V most allowances have ended and/or consolidated into base pay	Yes �V most allowances have ended and/or consolidated into base pay	Yes �V most allowances have ended and/or consolidated into base pay	Yes �V most allowances have ended and/or consolidated into base pay	Yes �V most allowances have ended and/or consolidated into base pay	In all cases, use of allowances has been reduced to increase transparency and reduce admin costs
Experience of replacing fixed pay scales with pay ranges
Have automatic annual increments on a pay scale been replaced by more flexible pay ranges?	Yes �V most staff are now on a flexible pay range	Not for the majority of unionised staff, although a new scheme is currently being implemented. Pay ranges have been introduced for senior (non-unionised) civil servants	Yes �V most staff are now on a flexible pay range	The majority of staff still receive an annual increment but pay ranges have been established for senior civil servants	Yes (with limited exceptions eg the Correctional Services).	General trend towards flexible pay ranges, particularly for senior staff

	Australia	Canada	New Zealand	Singapore	United Kingdom	General Observation
Systems and mechanisms for pay adjustments						General Observation	�@
Is a formal private sector comparison used to work out pay adjustments?	No - but adjustments must be within an agreed financial budget	No �V but emphasis on comparability and must be within agreed budget	No - but adjustments must be within an agreed financial budget	Yes �V calculated as a comparator to private sector pay	No - but adjustments must be within an agreed financial budget	The trend is towards a less mechanistic way of determining pay increases which allows agencies to address their individual needs, whilst operating within a broad centrally determined framework
What is the main role of central agencies in pay determination? - to agree or to set budgets for pay *increases?*	Agree overall financial budgets	Strong central role in both budgets and detailed pay adjustments	Agree overall financial budgets	Determine overall financial budgets	Agree overall financial budgets
	Agree overall financial budgets		Agree overall financial budgets	Determine overall financial budgets	Agree overall financial budgets
- to provide advice and guidance or to set broader pay policy issues?	To provide advice and guidance	To set direction and determine broader pay policies	To provide advice and guidance and set parameters	To set direction and determine broader pay policies	To provide advice and guidance and agree negotiating parameters
Experience of introducing performance-based rewards
Is there widespread use of performance related pay (PRP)?	Yes �V most staff have some form of PRP	Minimal �V for a small number of senior civil servants up to 20% of pay may be ��at risk��	Yes �V most staff are eligible for some form of PRP	Increasing - linked to performance of the individual and the economy as a whole	Yes �V most staff are eligible for some form of PRP	PRP is now widely used, particularly for senior staff
Are performance awards consolidated into base pay?	Yes for some staff	Yes, for some staff	Yes, increasingly for most staff	Yes for some staff	Yes for most staff
Is it paid as a one-off (non-consolidated) bonus?	Yes for some staff	Limited to senior civil servants	Yes for some staff	Yes for some staff	Use of bonuses limited to exceptional circumstances
Are there team-based performance rewards?	Some use �V typically paid on completion of a project	Very limited	Very limited �V bonuses typically paid on completion of project	Very limited	Limited �V still seen as experimental.	Whilst the broad principle is generally embraced there have yet to emerge significant numbers of successful examples
Has a robust performance management framework been developed?	Most forms of appraisal are used and increasingly 360 degree assessment. Skills development is ongoing.	Traditional approach to appraisal for most staff with lack of consistent standards	Well established systems and high skills level - self appraisal and 360 degree assessment are common. Reports are structured around competencies.	Traditional but rigorous system. Recent emphasis on development of balanced scorecard approach	Most forms of appraisal are used and increasingly 360 degree assessment. Skills development ongoing.	A key component to support performance related pay but requires significant education and skills development to engineer behavioural change
Experience of simplifying and decentralising pay and grading administration
Have there been moves to establish flatter, less hierarchical structures through simplification of pay and grading systems?	Yes - only 11 grades in the Australian Public Service	This is on-going. The current system is highly complex with 72 occupation groups, 105 sub groups and 840 separate levels	Yes �Vmost Departments and Agencies have independently introduced flatter and more flexible structures with fewer ranks/bands	Some simplification in recent years, particularly amalgamation of pay bands at senior levels	Yes �V most Departments and Agencies have independently introduced flatter and more flexible structures with fewer ranks/bands	In all cases there is a drive towards less complex pay and grading systems aimed at increasing flexibility at the department/agency level
Is a formal job evaluation system used?	Yes, to some degree. Each group of duties is classified according to its work value requirements	Yes, an off-the-shelf system is used for executives. For other positions, whole job comparison is used and grouped by occupations	Yes, either a position-based comparative job survey is used or an off- the-shelf system where there is no comparator role.	Yes, to some degree	Yes �V a civil service wide grading system is in operation	The trend is towards broad, generic occupational groupings and a move away from narrowly defined job descriptions

Note: the definition of civil servants may vary from one country to another.

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