The components of pay are
- job-based pay i.e. basic pay
- person-based pay
- working time compensations
- goal-sharing plan
The job-based pay is determined by the collective agreement for each sector. It is based on an assessment of the demands of work. The person-based pay is determined by work experience, individual competence and work performance.
Depending on the agreement sector, the job-based pay component is 66–83 % and increments for length of service 6–13 % of total pay. Working time compensations are 9–25 % of total pay and goal-sharing plan 0.2 % of pay.
Pay system development programme
The local government sector implemented in 2003–2007 a five-year pay system development programme to improve performance and strengthen the position of local authorities in the competition for workforce.
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