The Federal Republic of Somalia received financing from the World Bank toward the cost of the Somalia Capacity Injection Project. The World Bank worked with the Federal Government of Somalia and the Government of Puntland State of Somalia to develop the Capacity Injection Project to support the flagship programme. A key component of the project sought to improve policies and procedures for civil service management including development of public sector pay and grading policy and implementation plan to include reclassification of civil service jobs and implementation of pay and grading reforms. This necessitated the provision of technical assistance to establish civil service jobs (establishment posts) across ministries, departments and agencies (MDAs) on the basis of clear organizational mandates, optimal structures and functional responsibilities.
The objective of the assignment was to carry out a combination of field work and diagnostic analysis of public sector pay and grading trends and living standard assessment in Somalia and propose solutions that would provide adequate incentive for improved performance of civil servants and also enable efficient and effective management of public government’s wage bill as aligned to national strategies and development aspirations to promote sustainable growth.
The pay and grading assignment focused on identification of strengths and weaknesses of existing compensation and incentive structures, systems and processes. The team also undertook analysis of information from the labor market and review of existing reports of government on pay and grading options, salary harmonization, recurrent cost and reform financing (RCRF) and other remuneration policies and packages administered by international development partners in Somalia. The proposed solutions took account of labor market realities in East Africa and other regions, and pay and grading practices and reform in fragile and conflict affected countries with similar development characteristics.
Key Deliverables

• Overview report on the current pay and grading system
• Report on analysis of macroeconomic situation relevant to pay reform and wage bill management in Puntland
• Report on analysis of labour markets
• Analytical report on pay policy options and possible funding sources
• Analytical report on grading options
• Consolidated report on public sector pay and benefits policy including medium- and long-term objectives, and short-to-medium-term implementation measures
• Consolidated report on grading system for Puntland civil service
• Report on salary and benefits structure
• Financial model for appraising size, shape and cost of the civil service
• Salary administration guidelines
• Workshop reports including reports on training and transfer of skills and knowledge to government counterparts, and technical discussions and validation of proposals
• Action plan and roadmap for implementation of new grade and pay structure
• Arrangements and guidelines to facilitate smooth transition from current pay and grading system to the proposed system.