Bonus system for all public officials to be unified
22 May, 2014
Bonus system for all public officials to be unified
The Georgian government is intent to work out a unified and transparent system of premium and add-ons for all government members and public officials. The issue became of high public interest lately and Georgian Prime Minister Irakli Gharibashvili ordered the Administration of Georgian government and the National Bureau of Public Service to work out a unified rule of defining premiums and salary add-ons to all state structures alike by the end of coming June. This system should be a flexible and fair system in line with European standards.
“Once and for all there should be a system created in our country that will streamline the issue of salaries and add-ons of public and high ranking officials,” the PM said on 19 May. “This should be a transparent system so that no Georgian citizen would have a single question without receiving an answer.”
The issue of the volunteer system of disbursing bonuses and premiums to public officials has been criticized by non-governmental watchdogs including Georgian Young Lawyers’ Association (GYLA) and \ Institute for Development of Freedom of Information (IDFI) throughout the 9-year long office-term of the ex-authorities, but to no avail. The issue used to pop on the screen now and then. The bonus rates were defined at personal discretion of the heads of administrations or departments and significantly exceeded the average volume of bonuses adopted in the developed world. The Georgian government did not strictly limit bonuses, they used to redistribute them per month while defining the amount based on the personal taste of top officials who frequently defined their own bonuses as well. The total amount of bonuses made up one-third or half of the wages, and sometimes even exceeded the monthly wage. No argumentation and explanation why this or that bonus was granted was attached to the financial papers in public service while the law requires the motivation of bonuses.
International practice shows that although the bonus calculation and distribution methodology is different in each country, everywhere [except in Georgia] it is regulated by law. The bonus benchmark and cap limits are strictly outlined by law and fluctuate within 10-20% of the wages. Besides, bonuses are redistributed only once a year after the year is completed and achievements summed up while in Georgia they are frequently redistributed in the beginning of the month.
The power shift in the fall of 2012 was expected to change this vicious
practice, but it was only slightly amended: the Prime Minister only revoked the flexible bonus rates for ministers in March of 2013 and replaced it by monthly add-ons fixed at GEL 4,335. Plus, monthly salaries of GEL 3,540 were set for the ministries. Commensurately, the fixed monthly income of Georgian ministers reached GEL 7,875. The old bonus practice for deputy-ministers and other high-ranking officials remained in force. The issues was raised again after MP Irma Nadirashvili of the minority fraction trumpeted the information that staggering high premiums fluctuating between GEL 18,222 to GEL 39,130 were redistributed in December of 2013 to high-ranking personnel of Penitentiary Department’s, a substructure of the Ministry of Corrections of Georgia.
“Georgia is the only country where premiums are handed to governmental officials every month as regularly as salaries, and where their rate exceeds the salary amount,” Levan Avalishvili, an analyst with the IDFI, said in an interview with Georgian Journal. Each ministry handles this issue independently and so the system of premium delivery is different in every ministry and thus non-transparent. Normally, information on how premiums were redistributed among personnel should be made public via the official web-pages for example, but most of the ministries do not make this public. Some even withhold the information, even after official requests from the public sector. According to the most recent IDFI research, presented on 16 May, the only ministry that discloses full information on salaries and add-ons on the website is the Ministry of Environment and Natural Resources Protection. The IDFI required similar information from all other ministries, but only a few provided full data, some sent incomplete data, and others did not respond at all. From the available information IDFI calculated that in 2013 the volume of bonuses to high ranking officials in 14 ministries made up for GEL 5,729,131 while the add-ons totaled GEL 3,135,038.
Other Stories
New Airport Planned for Georgia’s Mountainous Racha Region
TBILISI – Construction works for a new airport in Ambrolauri – a town located in western Georgia’s mountainous Racha region
Top 5 most popular Georgian wines on export
As of July 2016, the export of wines from Georgia has increased by 42% comparing to the same period of last year.
Healing socks containing silver appear on Georgian market

New type of socks, containing silver and used for medical purposes, have emerged at the Georgian market.

Silicon Valley Tbilisi - The first high-technology center in Georgia
In modern world it is practically impossible to separate business and technology.
Building complex where you want to spend even your holidays - That is exactly how I bought an apartment in 30 minutes
While ago I filled the application form on Facebook. One construction company at a glance offered me an ideal living conditions
Hillary Clinton’s favorite Georgian wine costs 600 GEL
Hillary Clinton, the Democratic candidate in American Presidential Elections, has her own favorite wine in Georgia
Ice cream from Georgian yogurt Matsoni hits the market
Have you ever sampled ice cream made from Georgian yogurt Matsoni?
Georgian student who grows gigantic blackberries in Telavi
23-year-old Giorgi Latsabidze has been cultivating gigantic thornless blackberries
Orbi Group Project Gains Global Recognition
The Orbi Twin Tower, a new 4,500 room hotel complex, is being built on the Black Sea Coast in Batumi.
What to compare before taking a Loan?
Everyone goes through times in their lives when things do not go as planned and they look for a little bit of financial support.
The first wind power plant being built in Georgia
The first wind power plant is being built in Gori, Georgia.
First impressions of Green Budapest residents: “What I saw was far more than I expected”
Construction Company MAQRO Construction has launched the process of handing over the apartments in the Green Budapest residential complex to their owners.
 “Lampi” – Handmade lamps by young Georgian designers
A group of Georgian designers has founded a new company called Lampi, for producing handmade lamps of wood, metal and glass.
Solar panels bring electricity to Georgia’s mountainous Tusheti region
In Tusheti you won’t see overhead electric lines anywhere and it has always been that way.
Georgian Products Enter Arab Market
Georgian company Sairme Mineral Waters announced its entrance to the 32 million-consumer Saudi Arabian market
The first Media Forum to take place in Georgia, organized by Business Georgia and Bank of Georgia
Media company Business Georgia and Bank of Georgia, the leading Georgian bank are going to hold the first large-scale business forum “Media Industry 2016”
NATO Military forces serving in Afghanistan might be supplied with Georgian mineral water
Mineral waters producing company “Tskali Margebeli,” whose most famous brands are Nabeghlavi and Bakhmaro, plans to
 Gogowine - 27-year-old Georgian PR manager becomes successful winemaker
Keti Berishvili is a 27-year-old Georgian winemaker. Her family has been doing this business for the last several years
Georgian dried fruit company prepares to enter EU market
‘Kareli Fruit’ is preparing to enter the European Union market.
The Secret of the project Green Diamond’s Success
50% of the apartments have been sold in 1 week
What Rustavi will look like after renovation
Renovation works are underway in Rustavi, 25 kilometers southeast of Tbilisi.
Four double-deck railcars to operate in Georgia from July
Stadler KISS double-deck railcars will start servicing passengers on Georgian railways from Tbilisi to Black Sea resort cities from this summer
 Young winemaker from Tusheti to revive forgotten species of Georgian grapes
Shota Lagazidze is a 26-year-old winemaker from Tusheti, a mountainous region of Georgia.
TGM Consultants Expands its Caucasus Presence with New Leasing Appointment at Armenia’s Rossia Mall
Dubai, United Arab Emirates - May, 2016: The owners of the recently launched Rossia Mall in Armenia have appointed TGM Consultants
Tourist Complex to Be Built in Georgia’s Racha Region
Tbilisi – United Arab Emirates-based company Israel Ahmadov Investment announced that it will build a USD 500 million tourist complex near Shaori Lake
PHOTO OF THE DAY
GEL Exchange
USD
1
USD
2.2856
EUR
1
EUR
2.5802
GBP
1
GBP
3.0147
RUB
100
RUB
3.5265
Other Stories
Georgian entrepreneur Guka Tavberidze, who runs his own business in the UK and does it quite well, has been invited by BBC
The grand opening of 7-star The Biltmore Hotel Tbilisi took place in Georgia’s capital on July 31.
DUSHETI, Georgia – The Georgian government and the World Bank will allocate USD 5.6 million (12 million GEL) to fund
A new Georgian clothing brand named Person has emerged in Georgian market.
Georgia is in the midst of an economic maelstrom, Euronews reports.
Situation at Georgia’s mineral water market is interesting: over the last year, the volume of export has grown by 56 percent. According to “GeoStat”, over $114 million worth of mineral water was sold
Some of Georgia’s commercial banks are already buying at 2 GEL per $1. Their webpages are publishing information regarding national currency’s exchange rate in real-time mode.
Georgia's central bank governor Giorgi Kadagidze says Ukraine is in the same bind as Georgia was in when Russia banned its neighbor’s exports in 2006
Food and drinks at the territory of “Kazantip Republic” became cheaper. Some bars and food providers reduced their prices by 20% to 50%. For example, khinkali that cost 2 GEL
On the 20th of August, at 9 in the evening, “Kazantip” festival was declared officially open, with both multitudes of foreign guests and local denizens attending.