Performance-related pay 

Performance-related pay is a part of pay that promotes effectiveness and cooperation. It complements the central government pay systems that are based on the complexity and performance of tasks. Performance bonus schemes are based on the strategy and performance targets of each individual organisation, supporting their implementation. Performance bonuses encourage staff to pursue and achieve common goals and improve the organisation’s performance. The payment of performance bonuses depends on the employees achieving and exceeding the targets that have been set in advance. 

The central government social partners jointly adopted the general principles on performance-related pay on 31 August 2007. The aim is to comply with the principles when planning and applying performance-related pay in central government. 

The Office for the Government as Employer has published a brochure (Tulospalkkaus tutuksi) setting out the principles of performance-related pay, providing concise information on the matter and presenting expert views on the use of performance-related pay. In addition, representatives of employers and staff from two central government organisations discuss their experiences of drawing up and using performance bonus schemes. The brochure is available on our website or can be ordered from the Office for the Government as Employer. 

In 2018, close to 4,680 people received performance bonuses in central government. Bonuses accounted for an average of 4.7% of the regular wages among those who received bonuses, and for 0.3% of the central government total wage bill. 

Inquiries

Tuija Wilska
Senior Ministerial Adviser
tel. +358 2955 30374
[email protected]