Performance Related Pay at the Federal Government of Germany

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Performance Related Pay at the Federal Gover nment of Germany Muster Präsentation 28.08.22 - 1 Federal Ministry of the Interior - Division D I 4 – 28.08.22 - 1 Performance Related Pay at Performance Related Pay at the Federal Government of the Federal Government of Germany Germany Promotion is not the only option for rewarding achievement. The following incentives are also available… By Federal Ministry of the Interior ( By Federal Ministry of the Interior (http:// www.bmi.bund.de ) V 1.0 - 10/02/2003 V 1.0 - 10/02/2003

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Performance Related Pay at the Federal Government of Germany. Promotion is not the only option for rewarding achievement. The following incentives are also available…. By Federal Ministry of the Interior ( http://www.bmi.bund.de ) V 1.0 - 10/02/2003. - PowerPoint PPT Presentation

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Page 1: Performance Related Pay at the Federal Government of Germany

Performance Related Pay at the Federal Government of GermanyMuster Präsentation

19.04.23 - 1

Federal Ministry of the Interior - Division D I 4 – 19.04.23 - 1

Performance Related Pay at the Performance Related Pay at the Federal Government of GermanyFederal Government of Germany

Promotion is not the only option for rewarding achievement. The following incentives are also available…

By Federal Ministry of the Interior (By Federal Ministry of the Interior (http://www.bmi.bund.de))V 1.0 - 10/02/2003V 1.0 - 10/02/2003

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Promotion is not the only option for rewarding achievement. The following incentives are also

available:

1. For consistently outstanding performance:

Performance step

2. For outstanding special services:

Performance bonusPerformance allowance

3. For temporary assignment to special, additional duties:

Allowance according to Section 45 of the Civil Servants Remuneration Act (BBesG)

4. For longer-term assignment to higher-level duties:

Allowance according to Section 46 of the Civil Servants Remuneration Act (BBesG)

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1. For consistently outstanding performance:Performance step

Consistently outstanding performance

May be awarded to no more than 15% of one employer’s staff under remuneration scheme A

With three months’ retroactive effect at the earliest.

Until the staff member reaches the next basic salary level.

The amount of the difference between the current basic salary step and the next.

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1. For consistently outstanding performance:Performance step

Examples: Award amount (net) for married staff member with 2 children, tax bracket IV, in the following pay grades:

A 7, age 34: €40 (monthly), €497 (annually)

A 11, age 37: €42 (monthly), €537 (annually)

14, age 40: €64 (monthly), €786 (annually)

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2. For outstanding special services:Performance bonus

Outstanding special services

The total number of bonuses and allowances awarded may not exceed 15% of one employer’s staff under remuneration scheme A.

Within a short time of the services performed

One-off payment

Depending on performance, up to the initial basic salary of the respective pay grade at the time of the award decision

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2. For outstanding special services:Performance bonus

Examples: Award amount (net) for married staff member with 2 children, tax bracket IV, in the following pay grades:

A 7, age 34: €986 (one-off )

A 11, age 37: €1182 (one-off )

A 14, age 40: €1392 (one-off )

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2. For outstanding special services:Performance allowance

Outstanding special services that have already been provided for a minimum of three months and are expected to continue in the future

The total number of bonuses and allowances awarded may not exceed 15% of one employer’s staff under remuneration scheme A

With three months’ retroactive effect at the earliest

Up to one year

Depending on performance, up to 7% of the basic initial salary of the respective pay grade at the time of the award decision

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2. For outstanding special services:Performance allowance

Examples: Award amount (net) for married staff member with 2 children, tax bracket IV, in the following pay grades:

A 7, age 34: €74 (monthly), €891 (annually)

A 11, age 37: €91 (monthly), €1,091 (annually)

A 14, age 40: €107 (monthly), €1,289 (annually)

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3. For temporary assignment to special, additional duties:

Allowance according to Section 45 of the Civil Servants Remuneration Act (BBesG)

Staff performing special duties on short-term assignment (e.g. special projects or task force responsibilities)

Following the seventh month of the assignment, for a maximum of five years.

Up to the difference between the basic salary of the official pay grade and the pay grade corresponding to the duties performed (up to a maximum of three pay grades).

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3. For temporary assignment to special, additional duties:

Allowance according to Section 45 of the Civil Servants Remuneration Act (BBesG)

Example: Staff member, pay grade A 13 (higher service), age 37, married, two children, tax bracket IV:

May not exceed the difference between pay grades A 13 and A 16 (approx. €500 net)

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4. For longer-term assignment to higher-level duties:

Allowance according to Section 46 of the Civil Servants Remuneration Act (BBesG)

Staff temporarily assigned to take on duties of a higher-level position

Following the 19th month of the assignment.

The amount of the difference between the basic salary of the official pay grade and the next-highest pay grade.

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4. For longer-term assignment to higher-level duties:

Allowance according to Section 46 of the Civil Servants Remuneration Act (BBesG)

Example: Staff member, pay grade A 13 (higher service), age 37, married, two children, tax bracket IV:

Corresponds to the difference between pay grades A 13 and A 14 (approx €110 net)

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Comparative financial impact of performance-related instruments paid at the maximum rate

(gross amounts/year)

Beförderung

Zulage nach § 46

Zulage nach § 45

Leistungszulage

Leistungsprämie

Leistungsstufe

0 € 10.000 € 20.000 € 30.000 € 40.000 € 50.000 € 60.000 €

Grundgehalt Extra

Example: Staff member, pay grade A 13 (higher service), age 35:

Grundgehalt = Basic Salary

Leistungsstufe = Performance Step

Leistungspräme = Performance Bonus

Leistungszulage = Performance Allowance

Zulage nach §45 = Allowance under Section 45

Zulage nach §46 = Allowance under Section 46

Beförderung = Promotion