The All-Ukrainian Association of Amalgamated Territorial Communities has analysed the draft resolution of the Cabinet of Ministers of Ukraine on amending Resolution No. 268 of the Cabinet of Ministers of Ukraine dated 9 March 2006 ‘On the Regulation of the Structure and Conditions of Remuneration for Staff of Executive Bodies, Prosecutorial Authorities, Courts and Other Bodies’, which was submitted by the Ministry of Economy and Environment of Ukraine. Based on the results of this analysis, the Board’s position has been agreed. The draft proposes to increase the basic salaries of officials and civil servants in local self-government by roughly 10-15%, as well as to establish a separate salary scale for officials at the Administrative Service Centres (CNAPs).

The All-Ukrainian Association of Amalgamated Territorial Communities supports the necessity of increasing the salaries of local government employees. However, a 10–15% increase does not resolve a problem that has been accumulating for years. Salaries in local governments have not been reviewed since 2024, and their current level no longer allows communities to compete for professional staff with either the private sector or state authorities.

The staff shortage in communities is becoming a systemic problem

Today, communities experience an increasingly acute staff shortage. Finance specialists, economists, and experts in social protection, housing and utility services, investment, reconstruction and other fields are responsible for complex management processes, budgetary resources, the implementation of investment programmes and projects, and ensuring the functioning of the community. At the same time, their pay levels often do not reflect the complexity of their work, the scope of their powers or the level of responsibility involved.

As a result, service in local governments is losing its competitiveness and professional appeal. Communities are forced to compete for qualified staff not only with the private sector but also with state bodies, where pay levels are higher for positions with comparable levels of complexity and responsibility. The consequence is clear: it is becoming increasingly difficult for communities to retain experienced specialists and attract young professionals.

This is no longer simply a matter of pay. The shortage of staff directly affects the ability of communities to perform their duties – from drawing up budgets and providing social services to managing critical infrastructure, implementing investment projects, regenerating areas, and fulfilling tasks related to European integration.

When responsibility is higher and pay is lower

A particular problem is the disparities that have built up due to the chaotic and fragmentary increase in salaries for certain categories of public sector employees.

Decisions are made for certain positions and sectors without a comprehensive assessment of the entire system. This results in situations where a position with a lower level of managerial responsibility may be paid more than that of a local government official responsible for the budget, resource management or the functioning of a particular area of community life. The Association of Amalgamated Territorial Communities (AAATC) emphasises that such discrepancies are difficult to explain by objective differences in the complexity of the work or the level of responsibility. A pay rise for one category of employees should not lead to the devaluation of the work of others.

The position of the AAATC Executive Board: At least +25% and a comprehensive review of the system

Following consultations with communities and discussions with the AAATC Executive Board, the AAATC officially sent letters to central executive authorities setting out its comments and proposals.

The Association believes that, as a first step, it is essential to increase the basic salaries of officials and civil servants in local governments by at least 25% instead of the proposed 10–15%. At the same time, it is necessary to review the ratio between the salaries of different job categories and ensure that they are reasonably differentiated in line with the complexity of the work, powers, professional requirements, and level of responsibility.

The AAATC’s position is that yet another isolated pay rise will not solve the problem. It is necessary to move away from the practice of reviewing salaries separately for different categories of employees without assessing the consequences for the system as a whole. Remuneration in local self-government should be competitive compared with the civil service, and salary increases should have adequate financial backing so that they are not funded by cuts to bonuses, allowances, staff numbers or other community expenditure.

Communities cannot fulfil their ever-increasing range of responsibilities without professional staff. If the state expects local self-government to deliver effective management, recovery, investment attraction, and the implementation of European integration objectives, working in local governments has to be a competitive option. Therefore, the payment of wages today is no longer simply a matter of individual salaries, but of the human resources and institutional capacity of communities.