1. Civil servants' remuneration system in Lithuania Vilnius, 8 February 2012 CIVIL SERVICE DEPARTMENT UNDER THE MINISTRY OF INTERIOR 2012

2. Remuneration of civil servants is regulated by: The Law on Civil Service; Other legal acts. CIVIL SERVICE DEPARTMENT UNDER THE MINISTRY OF INTERIOR 2012

3. The main principles There is a unified job classification when one common job is provided for several possible categories according to the level of education and the institution group; The grade and a category depends on the category of institution where a civil servant is assigned; Grades are attributed in accordance with a unified methodology for job assessment within the administration. CIVIL SERVICE DEPARTMENT UNDER THE MINISTRY OF INTERIOR 2012

4. Remuneration consists of: Basic salary; Bonuses (for length of service, qualification class or category, degree, rank, onetime bonus of basic salary); Additional pay (for work in harmful, highly harmful and hazardous conditions, for activities which exceed usual workload, for performing additional assignments beyond the established working hours and for care of service animals); Pay for work on rest days, holidays and at night, overtime work and duty;  The amount bonuses and additional pays may not exceed 70 percent of the basic salary, not including bonuses for the length of service to the State of Lithuania, onetime bonus of basic salary and pay for work on rest days, holidays and at night, overtime work and duty. CIVIL SERVICE DEPARTMENT UNDER THE MINISTRY OF INTERIOR 2012

5. Lithuanian civil servants are divided into 20 categories (1-the lowest, 20-the highest); The basic salary is determined for the category of the position and is the same for all positions in the same category; Job positions are evaluated by managers within the range established by the appendix to the Law on Civil Service which came into force on 1 May 2008; The amount of the basic salary is calculated according to each position coefficient which is set forth in the Law on Civil Service  Example: the basic salary coefficient stated by the Law on Civil Service of the civil servant of the 20th category is 10,54. If multiply this coefficient from the basic rate (which is 450 Lt stated by the Seimas) and round up we’ll get the basic salary 4740 Lt (before tax, not including social and health insurance fees paid from employer funds). Basic salary (1) CIVIL SERVICE DEPARTMENT UNDER THE MINISTRY OF INTERIOR 2012

6. The basic rate for the following financial year is defined in the national collective bargaining agreement taking into account an average annual inflation of the previous year (calculating the national consumer price index) and other factors which impact the rate and alternation of average pay in the public sector; The basic rate agreed in the national collective bargaining agreement is approved by the Seimas (Parliament). If the national collective bargaining agreement is not concluded, the basic rate for the following financial year is approved by the Seimas (the national collective bargaining agreement is not concluded at this moment); The basic established rate can not be less then present basic rate, except in cases when national economical situation gets essentially worse. Basic salary (2) CIVIL SERVICE DEPARTMENT UNDER THE MINISTRY OF INTERIOR 2012

7. Bonuses A bonus for the length of service paid to civil servants shall be 3 percent of the basic salary for every three years of service for the State of Lithuania. The amount of this bonus may not exceed 30 percent of the basic salary; A bonus for the third qualification class shall be 10 percent, for the second qualification class – 20 percent, and for the first qualification class – 30 percent of the basic salary (shall not be paid to civil servants of political (personal) confidence); Bonuses for the grade or official rank or qualification category may only be paid to statutory civil servants in accordance with the procedure laid down in the statutes. Statutory civil servants shall not be paid a bonus for the qualification class, except for civil servants whose service is regulated by the Statute on the Diplomatic Service; The amount of bonuses may not exceed 55 percent of the basic salary (not including onetime bonus of basic salary). CIVIL SERVICE DEPARTMENT UNDER THE MINISTRY OF INTERIOR 2012

8. Additional pay The additional pay for activities which exceed the usual workload and for performing additional assignments beyond the established working hours (additional assignments for a civil servant shall be formulated in writing) may not be paid for a period exceeding one year after it was granted, except for civil servants of political (personal) confidence; If a civil servant has to work in such conditions for more than one year, such conditions shall be considered as permanent. In this case, an issue of amending the job description shall have to be settled; The amount of additional pay for activities which exceeds the usual workload, for performing additional assignments beyond the established working hours may not exceed 60 percent of the basic salary and the amount of additional pay for work in harmful, highly harmful and hazardous conditions and for service animal care may not exceed 20 percent of the basic salary. CIVIL SERVICE DEPARTMENT UNDER THE MINISTRY OF INTERIOR 2012

9. The structure of remuneration CIVIL SERVICE DEPARTMENT UNDER THE MINISTRY OF INTERIOR 2012

10. The New Civil Service Law project suggests to abolish additional pay and bonuses – these elements will be included to basic salary; to ensure the publicity of remuneration of a civil servant; to estimate 20% of annual civil servant wage as a premium for his or her job results; the model of civil servants’ remuneration suggested in the new project is orientated to a widely spread payment for civil servants’ job results in European Union. CIVIL SERVICE DEPARTMENT UNDER THE MINISTRY OF INTERIOR 2012

11. Basic rateAverage remuneration Average remuneration in 2008 - 2010 142 EUR 974 EUR 858 EUR 814 EUR 130 EUR CIVIL SERVICE DEPARTMENT UNDER THE MINISTRY OF INTERIOR 2012

12. The structure of remuneration in 2010 CIVIL SERVICE DEPARTMENT UNDER THE MINISTRY OF INTERIOR 2012

13. CIVIL SERVICE DEPARTMENT UNDER THE MINISTRY OF INTERIOR 2012