Table 1 - Public Sector Employment*1999 2000 2001 2002 2003 2004 2005 2006Public Sector Employees 47,455 48,031 48,487 47,154 46,826 45,747 44,970 42,827
Gainfully Occupied Population 134,193 136,759 137,662 137,588 136,911 137,393 137,900 138,66
6Ratio of public sector employees
to gainfully employed population
(%)35.4 35.1 35.2 34.3 34.2 33.3 32.6 30.9*excluding temporary employees
Source: The Employment and Training Corporation (ECT).
In 2003, a Collective Bargaining Unit was set up within the Ministry of Finance with the aim to monitor
the financial aspect of the collective agreements signed on behalf of enterprises or corporations owned or
run by the state. This initiative also aims to minimise pressures for salary increases by employees’
representatives particularly in cases involving the creation of new public entities and to maintain
relativity within the public sector salary regime.
During the fourth quarter of 2005, an agreement was reached between Government and the employees’
representatives over a renewed collective agreement for employees in the public service. The agreement
covers a six-year period and is backdated from 1 January 2005. Amongst the highlights of the new
collective agreement, one notes the establishment of a conciliation mechanism in the case of industrial
disputes. The new agreement provides for improvements in the working conditions particularly by
enabling employees to better combine work and family responsibilities. The agreement also promotes
employee flexibility particularly by enabling the Government to introduce new work schedules in areas
where public services to the business and tourism sectors are involved and the extension of private-public
partnerships with an aim of retraining and redeploying underemployed employees. These measures thus
contribute to increasing productivity of public service employees.
As regards, the compensation of employees in the public service, the salary increases awarded over the
period 2005-2010 are inclusive of the cost of living adjustment (COLA). In the case where the COLA
awarded in a particular year is higher than the prescribed salary increase, then the difference will be
awarded as a cash payment. Since the difference in compensation will be paid in cash, it will leave the
hourly and overtime rate of pay unaffected.
Senior managers in the Public Service of Malta are appointed on the basis of performance agreements
lasting from three to five years (five years in the case of Assistant Directors, three years in the case of
higher positions). Subsequent reappointment is not guaranteed and depends on performance. Each
performance agreement includes provision for the setting of annual performance plans against which the
officer’s performance is subsequently reviewed and, if merited, a performance bonus is awarded. The
conferment of performance bonuses is also assessed against the achievement of financial targets set up
for the department or entity concerned. The annual performance planning and review process is carried
out in accordance with guidelines issued by the Principal Permanent Secretary.
The Performance Management Programme (PMP) is a results-oriented employee appraisal system which
applies to staff below senior management level. The Management and Personnel Office within the Office
of the Prime Minister regularly undertakes compliance and quality audits on the use of PMP in all
ministries and departments, and also provides feedback to these entities on the basis of the findings of the
audits.