International Monetary Fund, 2004, Cambodia: Poverty Reduction Strategy Paper Progress Report, Country Report No. 04/333 (Washington).
Lindauer, D., and B. Nunberg, 1994, Rehabilitating Government; Pay and Employment in Africa, World Bank Regional and Sectoral Studies (Washington: The World Bank).
Lindauer, D. “Does Indonesia have a ‘low pay’ civil service?”, Bulletin of Indonesian Economic Studies, Vol. 37, No. 2: 189–205.
Schiavo-Campo, S., 1998, “Government employment and pay: the global and regional evidence,” Public Administration and Development, 18: 457–478.
Prepared by Joseph Ntamatungiro.
For details on past civil service and wage policy reforms in Cambodia, see Country Report No. 03/59.
About 10 percent of the total number includes nonpermanent staff (contractual and casual labor) managed by the Ministry of Economy and Finance (MEF).
Categories are determined by the level of education at entry: A for bachelor degree and up; B for high school plus 2 years; C for high school; and D for other.
Information on government employees was provided by the MEF. Staff did not obtain data from the computerized civil service database (HRMIS) managed by CAR.
Comparing the wage bill across countries is not an easy task in particular because of: (i) lack of information on non-monetary fringe benefits; (ii) lack of data comparability (central versus general government); and (iii) classification of some wage elements under other expenditure categories. For example, in Cambodia, civil servants receive “supplements” from foreign-financed projects, outside the wage bill. For details, see Schiavo-Campo, 1998.
The 2004 NPRS Progress Report refers to the “demotivation” of doctors and medical workers in the public sector and to the brain drain to the private sector (Country Report No. 04/333).
World Bank assistance in this area was based on the joint World Bank-AsDB Integrated Fiduciary Assessment and Public Expenditure Review (IFAPER) of 2003, which identified serious problems afflicting the civil service: low and compressed pay, low skills, and low capacity. It pointed out that low wages in the public sector encouraged corruption practices. For example, to make a living, teachers charge informal fees.
The (US$310,000 grant) was rated as unsatisfactory; it closed at end-March 2007.
Achievements included the census, a Human Resources Management Information System managed by CAR (HRMIS), a new employee classification system and salary grid, and the design of Priority Mission Groups (PMGs), an incentive mechanism for staff in priority sectors. For details, see Country Report No. 03/59.
The MBPI was established by Sub-Decree 98 of August 5, 2005. MEF has selected 264 staff (out of a possible 300 maximum under stage 1), with monthly remunerations ranging from US$126 to US$679. The MBPI is funded out of a multi-donor trust fund administered by the World Bank, with a total of disbursed resources of US$1 million). The World Bank’s PRGO aims at raising the MBPI coverage to 1,500 civil servants in 5 priority ministries by 2009.
The MBPI in the MEF is essentially financed by donors, with an initial government participation of 11 percent. The latter is to increase progressively over time, to 35 percent by 2011.
The EAP report notes that it is financially more attractive to remain in a lower MBPI position than to be promoted to more senior non-MBPI position.
A detailed external performance audit of the MBPI scheme is planned for late 2007.
CAR is developing a set of six policies to deepen and widen the reform over the next five years. One component is to raise monthly basic wages to US$100 by 2013 by annual increases of 20 percent.
In comparing public/private pay in Indonesia, Lindauer (2001) finds that the use of average pay was misleading, given that less-educated government employees earned more than in the private sector, which was not the case for high-education staff.
The 2007 EAP’s survey suggests that non-MBPI staff in MEF had a positive view on the MBPI scheme because they expected to receive MBPI benefits in the future.