Salaries of 54,000 officials to be linked to KPIs: what will change under the new system?

Uzbekistan is planning a fundamental overhaul of the system for paying state civil servants. According to proposals presented to President Shavkat Mirziyoyev, the salaries of nearly 54,000 employees working in ministries, agencies and local administrations will be calculated based on unified criteria.

The main idea behind the new model is simple: an employee’s income should depend not on which agency they work for, but on the complexity of their position, qualifications, responsibilities and results. However, this is not yet an effective procedure—the final regulatory document still needs to be developed based on the proposals presented.

There is a salary, but the share of the position salary is very small

Under the current system, a civil servant’s monthly income consists of numerous allowances, bonuses and additional payments. In some cases, the position salary accounts for less than 15 percent of total income.

As a result, employees performing the same duties may receive drastically different salaries in different ministries or agencies. Organizations with larger extrabudgetary funds have generally been able to provide more additional payments, while agencies without such opportunities have offered fewer.

The Ministry of Economy and Finance had also identified the fragmentation of salary levels under the current system, the payment of various allowances from extrabudgetary funds, and the low share of the position salary in total income among the main problems.

Under the new procedure, the main part of income is expected to consist specifically of the position salary. This will allow employees to understand their monthly income in advance, while enabling the state to calculate wage expenses transparently.

A unified system instead of dozens of allowances

It has been proposed to reduce the nearly ten allowances and incentive payments currently used in government agencies and replace them with three main types of payments.

Legislation on the civil service stipulates that pay consists of the basic position salary, payments for years of service and qualification level, a KPI allowance, and incentives based on the results of the reporting period.

The final procedure will separately determine which allowances will be consolidated, their amounts and the method of calculation. But the overall direction is clear: complex and difficult-to-understand additional payments will be reduced, and the salary structure will be simplified.

An 11-grade, six-level pay scale will be introduced

A unified pay scale consisting of 11 grades and six levels is planned for all state bodies.

The grade is expected to take into account the position’s role in public administration, the complexity of its duties and the level of responsibility. The levels will make it possible to distinguish between the experience, qualifications and professional growth of employees in the same position.

For example, if two ministries have chief specialist positions of the same level, their basic salaries will be calculated according to the same principle. An agency’s larger fund or separate internal payment system will not be the decisive factor.

The task of determining civil servants’ salaries according to a single principle based on work experience, academic and qualification levels, and performance was also set out in state service reform documents adopted in 2025.

KPI will determine not the entire salary, but the performance-based portion

Reports about the new system may create the impression that “officials will receive their entire salaries based on KPIs.” In fact, according to the proposal, the position salary will remain the main and stable part of income. KPI will affect the incentive portion paid according to an employee’s performance.

If an employee fulfills the assigned tasks or achieves results above the target, they will receive an additional payment. If performance is low, the incentive funds will also be reduced.

In practice, a mechanism already exists for rewarding civil servants at the end of a month, quarter, half-year or year for meeting key performance indicators.

However, the effectiveness of the new system will depend on how KPIs are defined. If evaluation is measured only by the number of meetings, reports prepared or letters sent, the reform could turn into a new form of red tape.

It is important for results to be assessed through the quality of services provided to the public, the speed of resolving problems, savings in budget funds and tangible changes in the relevant sector.

Bonuses may be offered to those who master artificial intelligence

The proposals also envision providing special incentives to employees who effectively master new technologies, including artificial intelligence tools.

This does not mean that every employee who opens an artificial intelligence program on a computer will automatically receive a bonus. The incentive is expected to be given to specialists who implement the technology in their work, save time or money, improve service quality and demonstrate measurable results.

In Uzbekistan, a procedure has also been established for taking into account the implementation of artificial intelligence technologies when assessing the digital transformation of state bodies.

In this regard, the new payment system could also become a tool for government agencies to attract not only experienced personnel but also young employees with digital skills.

Who will the changes apply to?

The proposals will cover approximately 54,000 state civil servants. They include:

— employees of the central offices of ministries and agencies;
— specialists of regional departments;
— employees of regional, district and city administrations.

This figure does not include employees of all budget-funded organizations. Teachers, doctors, cultural workers and representatives of other budget-funded sectors have separate remuneration systems.

An updated system based on KPIs, position salaries, qualification levels and bonuses began to be applied in local administrations in 2025. The possibility of applying these principles uniformly to other levels of the state civil service is now being considered.

Will salaries increase or decrease?

No precise calculations have yet been published on how much the monthly salaries of all employees will change. The new system may lead to salary increases for some, while certain allowances may be reduced for others.

The main goal is not to pay everyone the same amount. It is to establish a unified basic approach for duties of the same level and create an opportunity for employees who achieve better results to earn more.

The President stressed the need to ensure the principles of fairness, transparency and efficiency in developing the proposals, and to link salaries to employees’ qualifications and responsibilities.

The true result of the reform will be seen not in the new tariff schedule, but in the answer to one question: will KPI measure an attractive report on paper or a change that people can feel in their daily lives? Leave your opinion in the comments and share the article with your acquaintances and friends on Telegram or other social networks!