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Performance Related Pay at the Federal Government of Germany

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.

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Performance Related Pay at the Federal Government of Germany

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  1. 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 Performance Related Pay at the Federal Government of GermanyMuster Präsentation

  2. Promotion is not the only option for rewarding achievement. The following incentives are also available: • For consistently outstanding performance:Performance step • For outstanding special services:Performance bonusPerformance allowance • For temporary assignment to special, additional duties:Allowance according to Section 45 of the Civil Servants Remuneration Act (BBesG) • For longer-term assignment to higher-level duties:Allowance according to Section 46 of the Civil Servants Remuneration Act (BBesG) Performance Related Pay at the Federal Government of Germany

  3. 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. Performance Related Pay at the Federal Government of Germany

  4. 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) Performance Related Pay at the Federal Government of Germany

  5. 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 Performance Related Pay at the Federal Government of Germany

  6. 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) Performance Related Pay at the Federal Government of Germany

  7. 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 Performance Related Pay at the Federal Government of Germany

  8. 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) Performance Related Pay at the Federal Government of Germany

  9. 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). Performance Related Pay at the Federal Government of Germany

  10. 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) Performance Related Pay at the Federal Government of Germany

  11. 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. Performance Related Pay at the Federal Government of Germany

  12. 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) Performance Related Pay at the Federal Government of Germany

  13. Comparative financial impact of performance-related instruments paid at the maximum rate (gross amounts/year) • 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 Performance Related Pay at the Federal Government of Germany

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