Bonuses at Public Service, not Provided by Law
27 June, 2013
Bonuses at Public Service, not Provided by Law
Bonuses disbursed to officials employed at Georgian public service, including the state chancellery, presidential administration, ministries, parliament and other state administration related entities do not fit into the legal framework. The bonus rates are defined at personal discretion of the heads of administrations or departments and significantly exceed the average volume of bonuses adopted in the developed world.
Georgian Young Lawyers’ Association (GYLA) came to this conclusion after researching the bonus calculation and distribution practice at Georgian public service from
October 1, 2012 till April 1, 2013 and comparing it with the bonus systems adopted in European countries. The practice of researched countries shows that the bonus system is vital to make public service effective, combat corruption and attract skilful professionals to this sector; however, the bonus calculation and distribution methodology in each country is regulated by corresponding law, except Georgia. The benchmark and cap limits of bonuses are strictly outlined by the law; it fluctuates within 10-20% of the wages and are distributed only once a year at the end of the year, when achievements are summed up. Meantime, Georgian government set no strict limits to bonuses; it used to distribute them on monthly basis, defining the volumes at personal taste of top officials, who frequently defined their own bonuses as well. The volume of bonuses make one-third or halve of wages and sometimes exceeds the monthly wage or are distributed in the beginning of the month. And no argumentation and explanation why this or that bonus was granted, is attached to the financial papers at public service.
“First of all, the problem is that there is no strict definition of bonus in the law and there are no regulations how it should be calculated,” Kakha Kozhoridze, head of GYLA, said in the interview to Georgian Journal. “While the international standards show that each reward should be augmented and put within the regulation, there is no order or decree of the President or Prime Minister, defining how rewards should be disbursed at public service and heads of each departments were outlining bonuses at their own discretion despite the General Administrative Code of Georgia that requires arguments to be provided before enacting any act of legal administration. As to the bonus rates, they completely contradict any law.”
As a matter of fact, after power shift on October of 1, 2012, new Prime Minister of Georgia, Bidzina Ivanishvili, revoked bonus distribution by the ministers and heads of the state chancellery and prescribed monthly add-ons of GEL 4 335; bonuses will be allocated only by the end of the year if governmental members fulfill some special service. Nevertheless, as a non-governmental watchdog Institute for Development of Freedom of Information (IDFI) researched recently, MPs of the new parliament have already received bonuses in the volume of GEL 956 389 in January-April of 2013 and add-ons of GEL 1 523 276 for the rates of add-ons increased. According to Nino Sukhishvili, an experts with IDFI, incomes of MPs were supposed to drop by 30% as a result of revoking monthly bonuses; however, it decreased just by 5% thanks to the increased add-ons.
Non-governmental watchdogs appeal to Georgian government to streamline legislative gaps in the bonus system in compliance with the developed world standards and also recommend increasing wages to public servants rather than introducing add-ons that should be outlined each year all over again.
Other Stories
Georgian business associations establish Georgian Tourism Industry Alliance
Business associations representing various sector of the hospitality industry in Georgia agreed to establish Georgian Tourism Industry Alliance (GTIA).
IMF approves $200 million for Georgia
The Executive Board of the International Monetary Fund has approved US$200 million financing to Georgia to address the effects of the COVID19 pandemic.
Georgia will be one of the first to open tourist corridors, Economy minister vows
Georgia’s Minister of Economy and Sustainable Development Natia Turnava pledged that Georgia would be one of the first countries to open safe tourist corridors with other countries.
Georgia’s GDP may contract 4%, the worst in the region amid pandemic
International Monetary Fund forecasts a 4% contraction of Georgia’s economy, which very much depends on tourism and money transfers.
Georgian retailers fight for survival as coronavirus pandemic continues
Pandemic has affected everyone worldwide, but one of the most vulnerable are retailers, those who depend on consumers and their spending.
Georgia remains the fifth in terms of budget transparency
According to the 2019 Open Budget Survey (OBS), conducted by the International Budget Partnership (IBP), Georgia got 81 points out of 100 in state budget transparency, the Transparency International Georgia said on Wednesday.
Georgia to receive €1.16 million for agriculture development
Within the GRETA project, the EU, Sweden and Austria launched the Local Development Initiative (LDI), to create great economic opportunities in the organic agriculture sector for farmers, farmer groups, cooperatives, processing units as well as other actors along various organic value chains.
Products rotten amid nationwide lockdown in Georgia
Food chain security is becoming more and more important as lockdown stays in place and farmers cannot transport their products from one place to another.
Georgian government to spend GEL 3.5 billion within crisis management plan
Georgian government has introduced a crisis management plan that consists of different stages. GEL 3.5 billion will be spent to cushion economy but this amount does not cover the post-crisis recovery period.
Georgia to receive €183 million from EU to fight Coronavirus
Due to the economic crisis caused by the pandemic of the coronavirus disease COVID-19, the EU has proposed a new package of macro-financial assistance.
Air traffic to be halted until May 22, GCAA says
Air traffic in Georgia will stay halted until May 22, 2020, Georgian Civil Aviation Agency says in a statement.
Georgian PM discusses support packages from ADB, EBRD
Prime Minister of Georgia Giorgi Gakharia held a video conference with the presidents of the EBRD and ADB regarding the possible assistance and financial resources to be allocated to Georgia due to the challenges associated with the global pandemic.
EBRD to provide €1 billion to Georgia, other countries
The EBRD and Georgia are stepping up cooperation as the country's economy faces the challenge of the coronavirus outbreak – says an official statement published on
Government closes ski resorts in Georgia over COVID-19
The season at the ski resorts of Georgia closes ahead of schedule, the Prime Minister’s spokesman, Irakli Chikovani, said at a briefing.
Georgia will export armored vehicle Didgori Warrior
A new Georgian armored vehicle Didgori, equipped with a 120mm mobile mortar module, will be exported under the agreement signed between the Military Scientific-Technical Center Delta and one of the countries of the Middle East, the Ministry of Defence said.
Korter: Reliable housing property data in Georgia
It's not a simple job to find fresh homes. But when you use the estate choice service Korter, everything becomes distinct.
Rent a car in Tbilisi –
Are you thinking of booking the best vehicles for your next trip at a very reasonable price? If yes, then this is one of the best decisions you can ever make for yourself.
Pleasant Sunday for the whole family – Renewed Sunday’s brunch at The Biltmore Tbilisi Hotel
Summer, the season of endless fun and vacations, has ended and Tbilisi has become a usually crowded city.
GEL devalues, officials show optimism though
Devaluation of the national currency has sent shockwaves among citizens in Georgia. Officials think that the trend will return to its normal frame, though.
ProCredit Bank’s 20 years of challenges and successes in Georgia and what it means to be a responsible bank
“The bank’s 20-year long presence in Georgia was marked by many challenges and success stories.
Comments on alarming GEL devaluation
The National Bank of Georgia set a new exchange rate, according to which, dollar price became GEL 2.9507 on Tuesday.
Euronews and Silknet sign an MOU to launch “Euronews Georgia”
Euronews and Silknet, Georgia’s leading telecommunications company, are announcing the signing of an MOU in view of launching Euronews Georgia, a news channel and digital platform aimed at a Georgian-speaking audience.
Green Diamond starts to hand over flats to owners as second stage of construction finishes
Second stage of construction of Green Diamond living apartments by MAQRO Construction has finished and process of hand over of flats to owners has started.
Georgian wine tasting in the US came off excellently
Georgian wine tasting in the main cities of the US, New York, Chicago, and Boston went off excellently.
The most wanted fruits from Georgia
The fruit exportation has decreased in Georgia. According to Geostat (National Statistics Office of Georgia), this year, up until May Georgia exported 25 939 300 USD worth of fruit – 6 771 300 USD less than in 2018.
GEL Exchange Rate
Other Stories
Recently Toyota rolled out Global Campaign under this slogan that reflects the Olympic and Paralympic Spirit of Encouragement,
A couple from Switzerland combines Swiss tradition and technology with Georgian products. Their cheese is made in the Georgian mountains and sold in local stores and hotels.
It has been more than five years since the residents of Lilo village, near Tbilisi, cannot open their windows.
63 000 GEL was received by the Georgian Agro Export Group which is just a small part of the European Neighbourhood Programme for Agricultural and Rural development.
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
GEL Exchange
July 2020
Mon Tue Wed Thu Fri Sat Sun
1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31