Albiona Peci

Abstract

A very important economic contributor to the well-being of every country is its public sector. In Kosovo, it is even more important since the public sector is the main employer in the country. However, it is a sector characterized by many organizational and structural problems. One of the most important problems regarding this sector is the way salaries are set in different institutions of it. As such, the focus of this project was to evaluate the effectiveness of Kosovo’s regulation in setting public sector salaries. Specifically, the goal of this project was to provide an analysis of the current state regarding salaries in the public sector and highlight the problems associated with them. Based on the outcomes of this analysis, the aim of this project was to provide recommendations as to how to rectify this deadlock in the salaries of the public sector. Due to the nature of this issue, the project followed a quantitative analysis approach. As such, the core of this project was the analysis of existing data regarding salaries in different institutions in the public sector. Three ministries, one independent agency and one municipality were chosen for the analysis. One limitation to this project was that data for all the institutions were not available. Besides the analysis of salary data, three interviews were conducted to better understand the circumstances and the reasons behind the current situation in the public sector regarding salaries. Although the legislation for a modern public sector is in place, its implementation is lacking. The outcomes of this analysis show that there are several violations of the “equal pay for equal work” principle embedded in the legislation regarding salaries in the public sector. Based on the results of the analysis, salaries in the public administration of Kosovo do not account for living expenses. Moreover, they do not include remuneration for special and dangerous working conditions. Additionally, they also fail to acknowledge the importance of setting proper incentives for better educational qualification of the employees. Lastly, they do not provide the necessary incentives for the development of the public sector in the local level. These problems contribute to the demotivation of employees in the public sector which, inevitably, affects their performance.

Publication Date

2-13-2015

Document Type

Senior Project

Student Type

Undergraduate

Advisor

Not listed.

Comments

AUK Honors Society

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