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

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

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.