Saba Buadze: “The remuneration for non-staff employees in the public sector has surged, with expenses totaling GEL 261 million in just the first six months of the year. This represents an increase of GEL 25 million as compared to the same period in the previous year.”

Verdict: FactCheck concludes that Saba Buadze’s statement is MOSTLY TRUE.

The remuneration for non-staff contractor workers in the public sector amounted to GEL 261 million in the first six months of the current year, according to the performance report of Georgia’s state budget. This represents an increase of GEL 25 million as compared to the same period in the previous year. Thus, this part of the statement is accurate.

However, the government's remuneration policy, which includes a 10% annual salary increase, suggests that these figures will rise each year and reach record highs (at least until 2026).

Additionally, Saba Buadze highlights that the number of employees in the public sector has been inflated, alleging that it serves as a space for employing party-affiliated individuals.

Whilst it is challenging to evaluate the overall increase in the number of non-staff employees, as the state budget performance report does not indicate this data, we can still analyse the number of contractor workers in government LEPLs and N(N)LEs, which has been rising since 2021.

Notably, the number of non-staff workers in the aforementioned entities increased significantly (by 15.3%) in 2022, with an additional 7,745 individuals employed in the sector.

Furthermore, research by the Institute for Development of Freedom of Information and audit reports show that non-staff contractor numbers in many government organisations often exceed legal limits.

Thus, the number of non-staff employees in government structures has been icnreasing in recent years, which is a tendency often highlighted by politicians who claim that it serves as a form of party-affiliated employment, as it is easier to hire non-staff employees than permanent staff. Whilst the remuneration for non-staff contractor workers surged in the first six months of 2024, reaching a record high, it is important to note that record highs are expected each year due to the government’s remuneration policy. Considering all of the above, FactCheck concludes that Saba Buadze’s statement is MOSTLY TRUE.

Analysis

A member of the coalition Strong Georgia, Saba Buadze, highlighted the increase in remuneration for non-staff contractor workers in the public sector during a briefing, stating: “Strong Georgia would like to address the record high growth in remuneration for non-staff workers – a trend closely tied to the pre-election period and the fact that the government, which is aligned with Russia, is rapidly losing public support. The public sector decided to transform itself into a space for party-affiliated employment, which is why the expenses for non-staff employee salaries has reached a record high. These expenses amounted to GEL 261 million in just the first six months of 2024, representing an increase of GEL 25 million as compared to the same period in the previous year. Furthermore, non-staff employee wages constituted GEL 150 million in 2015.”

The Law of Georgia on Public Service defines a non-staff employee as an individual appointed or recruited on the basis of an employment agreemet for a specific period of time to perform temporary work (Article 8).

The procedure for hiring non-staff contractor workers is simpler than that of permanent employees (who are required to undergo a competitive process), which can lead to increased nepotism and politically motivated appointment decisions.

The remuneration for non-staff contractor workers in the public sector amounted to GEL 261 million in the first six months of the current year, according to the performance report of Georgia’s state budget. This represents an increase of GEL 25 million as compared to the same period in the previous year. Thus, this part of the statement is accurate.

We have analysed the state budget performance reports of the recent years to illustrate the trends in remuneration for non-staff employees in the public sector.

Table 1: Annual Salaries for Non-Staff Contractor Workers Employed in the Public Sector

Year

Six Months

Annually

2015

68 564 200

149 844 900

2016

78 018 600

170 349 900

2017

81 274 000

182 206 000

2018

95 337 800

217 089 400

2019

105 634 200

242 223 100

2020

125 900 000

296 326 400

2021

153 239 300

359 630 900

2022

194 891 700

438 570 100

2023

236 498 700

516 166 300

2024

261 321 600

Source: Ministry of Finance, State Budget Performance Reports

Annual state budget performance reports suggest a growing tendency in the salaries for non-staff employees in the public sector, with consistent annual rises. Furthermore, it is essential to note that the government has announced a 10% salary increase for public sector workers from 1 January 2023 to 2026. This policy aims to address the disparity in remuneration between the public and private sectors, with the goal of closing this gap by 2026.

Thus, whilst the salaries for non-staff employees have indeed increased and reached a record high in the first six months of the current year, this tendency should not be considered unusual due to the government’s remuneration policy. Notably, similar annual increases have been observed in recent years.

Additionally, Saba Buadze highlights that the number of employees in the public sector has been inflated, alleging that it serves as a space for employing party-affiliated individuals.

Whilst it is challenging to evaluate the overall increase in the number of non-staff employees, as the state budget performance report does not indicate this data, we can still analyse the number of contractor workers in government LEPLs and N(N)LEs, which has been rising since 2021.

Table 2: The Number of Non-Staff Contractor Workers in Government LEPLs and N(N)LEs and Their Remuneration

Year

Employees

Permanent

Non-Staff

Remuneration

2013

159 845

124 443

35 402

823 463 000

2014

169 265

120 964

48 301

1 103 919 400

2015

160 536

124 596

35 940

1 455 248 000

2016

166 244

126 408

39 836

1 119 684 000

2017

150 305

111 835

38 470

1 118 573 300

2018

165 259

125 369

39 890

875 014 900

2019

160 934

114 573

46 361

970 328 700

2020

157 139

112 112

45 027

1 097 609 100

2021

163 069

112 508

50 561

1 241 209 800

2022

173 038

114 732

58 306

1 393420 500

2023

176 151

117 019

59 132

1 576 296 500

Source: Ministry of Finance, State Budget Performance Reports

The number of employees in LEPLs and N(N)LEs increased significantly by 9,420 in 2014 as compared to the previous year. Furthermore, there was also a rise in salaries, amounting to GEL 280.5 million. Notalby, whilst the number of permanent employees decreased in 2014 as compared to 2013, the number of non-staff workers increased significantly by 12,899. Although the number of employees decreased in the following year, remuneration increased. There has been consistent growth across all components from 2019, with the exception of 2020 – the pandemic year. Particularly, a notable change in the number of non-staff workers was observed in 2022, with the increase amounting to 7,745, representing a 15.3% rise.

Furthermore, research by the Institute for Development of Freedom of Information and audit reports show that non-staff contractor numbers in many government organisations often exceed legal limits.

Audit reports also frequently highlight that municipalities establish LEPLs and N(N)LEs without clear justification for their necessity and the functions of these entities often duplicate those of existing local bodies and other N(N)LEs. Additionally, adequate working conditions are not provided for some of these N(N)LEs.

Furthermore, audit reports underline that the number of employees in the aforementioned municipal LEPLs and N(N)LEs is excessively high. These reports often find that the rationale or the necessity for increasing the number of employees is not justified and that there is an overlap in the functions performed by these individuals.

Considering all of the above, FactCheck concludes that Saba Buadze’s statement is MOSTLY TRUE.


Persons

Similar News

5669 - Verified Facts
FactCheck Newspaper
26%
True
16%
Lie
12%
Manipulation
10%
Mostly True
10%

Most read

All Articles