The report “Public Servants’ Remuneration, 2020–2024” was published by the Office of the Auditor General (OAG) today. The public interest report presents information about the remuneration of the public service, which includes all civil servants and employees of statutory authorities and government companies (SAGCs), for the five years 2020 to 2024.
The report states that public service remuneration amounted to $3.1 billion over the five years 2020 to 2024. It ranged between 46 per cent and 51 per cent of annual government expenditure over the five years, accounting for 49 per cent of government expenditure during this period.
Patrick Smith, the Auditor General, says, “The Government’s expenditure on public servants’ remuneration is significant. Therefore, I prepared this report to provide independent information and improve transparency regarding this expenditure.” Mr. Smith continues, “The Government’s salary scales included in this report are already in the public domain, as is much of the information.”
The report highlights the following about public servants and their remuneration between 2020 and 2024:
· The Government spent $3.1 billion on public servants’ remuneration over the five years. Of this, $1.9 billion (61 per cent) relates to civil servants’ remuneration. The remaining $1.2 billion (39 per cent) relates to the remuneration of SAGC employees.
· The top four categories of remuneration – salaries and wages, healthcare, pension and overtime – accounted for $2.9 billion, or 96 per cent of the total remuneration.
· Public servants’ remuneration increased by 37 per cent over the five years, from $521 million in 2020 to $712 million in 2024.
· The number of public servants increased by 14 per cent over the period, from about 6,900 in 2020 to about 7,900 in 2024.
· The average remuneration of public servants increased by 19 per cent from about $76,000 in 2020 to about $90,000 in 2024.
· The 19 per cent increase in the average remuneration of public servants is less than the price increases due to inflation of 22 per cent over the same period.
· Between 2020 and 2024, the Government awarded two cost-of-living salary adjustments (COLAs) to public servants, cumulatively increasing their remuneration by about 10 per cent. With effect from January 2025, the Government awarded another 5 per cent COLA to all public servants.
The report also sets out the remuneration of civil servants and SAGC employees in separate chapters. It highlights the following about civil servants’ remuneration between 2020 and 2024:
· The Government spent $1.9 billion on civil servants’ remuneration.
· Five categories of remuneration – salaries and wages, healthcare, pension, overtime and duty allowance – accounted for $1.8 billion, or 97 per cent of total civil service remuneration.
· Civil servants’ remuneration increased by 34 per cent from $319 million in 2020 to $427 million in 2024.
· The number of civil servants increased by 13 per cent from about 4,300 to 4,800.
· The average remuneration of civil servants increased from about $75,000 in 2020 to about $88,000 in 2024, an 18 per cent increase.
The report highlights the following about the remuneration of employees of SAGCs between 2020 and 2024:
· The Government spent $1.2 billion on remuneration for SAGC employees.
· Five categories of remuneration – salaries and wages, healthcare, pension, overtime and special allowances – accounted for 97 per cent of the $1.2 billion total.
· SAGC employees’ remuneration increased by 41 per cent from $202 million in 2020 to $285 million in 2024.
· The number of SAGC employees increased by 16 per cent from about 2,600 to 3,100 over the five years.
· The average remuneration increased by 21 per cent, from about $77,000 in 2020 to about $93,000 in 2024.
The Auditor General adds, “The public sector relies on its staff to deliver services. It is not surprising, therefore, that around half of all public sector expenditure is on staff remuneration costs.” Mr. Smith adds, “Over the five years 2020 to 2024, the Government spent around $3.1 billion on staff costs, including salaries, pension, healthcare and other costs.” Mr. Smith continues, “Over the five years, remuneration costs for the public sector increased by 37 per cent. A growing number of public servants drives part of the increase, and some relates to cost-of-living awards to keep salaries better in line with inflation.”
The report also highlights that the Government owed about $2.8 billion in liabilities for defined benefit pensions and post-retirement healthcare for current and former public servants as at 31 December 2024.
More information about the report can be obtained by contacting Angela Cullen, Acting Auditor General (Performance Audit) at (345) 922-3220.
This report and the original OAG reports on which this report is based are available at www.auditorgeneral.gov.ky.