The public sector as the backbone of society: key highlights of the wage reform and the role of public employees

Minister Props highlighted the importance of the public sector as a public service accessible to everyone, regardless of their social status, age or place of residence. He pointed out that public sector employees – from childcare workers, teachers, healthcare and social workers to firefighters, police officers and arts and culture professionals – are key to the normal functioning of society. He added that the number of Slovenian public sector employees does not exceed the European average, and that in many places, the tasks performed by public services in the country have already been passed to the private sector. "If public sector employees really did no work at all, this would soon affect everyone. Most public sector employees carry out their work with dedication and a high level of responsibility," said the Minister. Just like in the private sector, the public sector is also facing a staff shortage and the challenge of how to retain good employees and attract young people who have different expectations from the generations before them. "If we want a high-quality public sector that provides services at the level that people expect, reform was essential", he added.

Minister of Finance Klemen Boštjančič dismissed claims made during the salary system reform that it was merely a 'wage increase', stressing that it was a far-reaching transformation of the system. "The wage reform is not a cosmetic adjustment. It is a comprehensive overhaul that regulates wage relations, strengthens the link between wages and work efficiency, and imposes greater responsibility on employers," he emphasised. According to him, one of the greatest achievements of the reform is the elimination of the practice whereby 27,000 public sector employees were paid below the minimum wage, which meant that their employment allowances had no real effect. Today, all allowances are calculated from a higher base, which ensures more equitable remuneration for employees.

Minister Boštjančič also pointed out that wage system reform was the result of lengthy, complex and substantive negotiations between the Government and representatives of public sector unions. All the key starting points, including the reform goals and the concretisation of solutions, were coordinated through dialogue with social partners, and the agreement was signed by the vast majority of trade unions. The fundamental goal of the reform was to ensure a more fair, transparent and stable wage system for the public sector, which would also be financially sustainable.

Director General at the Ministry of Public Administration, Peter Pogačar, stressed that the public sector plays a key role in providing citizens with everyday services – often around the clock, every day of the year. "Almost 80 percent of all public sector employees are engaged in activities of providing direct services to citizens, primarily in the areas of education, healthcare and social protection. Less than 20 percent are employed at ministries, municipal administrations and other administrative bodies, which is often overlooked," he remarked, adding that, in terms of the number of persons employed in public service activities, Slovenia is ranked in the lower third of the EU Member States, which does not necessarily point to inefficiency, but rather to the potential for further growth. "The more developed a country is and the higher the quality of life it offers, the greater the number of public sector employees. The best examples of this are the Scandinavian countries," he said.

According to him, a survey conducted in 10 OECD countries shows that almost 70 percent of all respondents in Slovenia are satisfied with administrative services, which ranks the country in the top half of the countries surveyed. He also emphasised that the future of the public sector will be marked by demographic changes, digitalisation, artificial intelligence, and the development of new professions and forms of work. "People's satisfaction with public services is increasing, especially where services are digitalised, and this is the way forward," he concluded.