Copyright: Ministry of Public Administration The reform aims to strengthen the use of variable pay and performance-related pay in the public sector to increase its efficiency. The reform will preserve the fiscal sustainability of the public sector wage system.The reform consists of the entry into force of a new law modernising the public sector remuneration system. The new remuneration system is expected to highlight the role of managers and improve human resources management and develop a competence model for public sector employees. In addition, it will also provide for differentiated remuneration depending on the segment of the public sector, which should create more flexibility and ensure that remuneration is linked to performance. The legislation will allow for different arrangements for specific activities or professions, while also addressing the shortage of certain professions in the public sector.At its session on 24 October 2024, the National Assembly of the Republic of Slovenia adopted the Act regulating the pay system in the entire public sector in the Republic of Slovenia, with the aim of ensuring uniformity and transparency in determining the wages of employees in different parts of the public sector, while ensuring the financial sustainability of public finances. A key part of the law is the new wage scale, which is divided into 67 pay bands, with the first salary band being set at the value of the minimum wage for 2024.The law includes a provision that prevents an excessive fall in basic salaries in real terms, as a result of the previous legislation. The value of the salary bands of the salary scale will be adjusted annually. The scope of the allowances to which civil servants and officials may be entitled is essentially unchanged by the law in relation to the previous legislation. The way in which funds are distributed for the performance part of the salary is simplified and administratively relieved, while performance from the sale of goods and services on the market (not financing from the budget) is maintained in substantially unchanged form. Additional Links:https://www.gov.si/zbirke/projekti-in-programi/prenova-placnega-sistema-v-javnem-sektorju/ https://www.gov.si/teme/placni-sistem/ https://www.gov.si/novice/2025-02-10-v-tem-tednu-prva-izplacila-plac-po-uvedbi-novega-placnega-sistema/ https://pisrs.si/pregledPredpisa?id=ZAKO8826 ReferenceC3.K13.RB in the SI Recovery and Resilience PlanProject locations Slovenia