Scenario planning of dynamic performance allowances policy for health personnel civil servants’ local government in Indonesia

Abstract

This study examines policy options related to Dynamic Performance Allowances (DPA) for health personnel civil servants in Bandung, Indonesia, emphasizing the need for equitable, workload-sensitive payment systems. The current remuneration model inadequately reflects variations in workload and associated risk, necessitating a more integrated and fair compensation framework. Employing a qualitative policy scenario planning approach, this research develops models that align remuneration with actual service contributions and risk factors. Among the eight proposed scenarios, Scenario 7 emerges as the most just and feasible. It integrates job position values, accumulated service points, and risk-based bonuses to create a structured and equitable pay system. This model not only ensures appropriate compensation but also strengthens financial incentives, optimizes workload distribution, and enhances motivation among health personnel. The findings propose a strategic shift in local government remuneration policies to bolster performance-based payment systems, ultimately aiming to improve service quality in public health institutions. Recommendations advocate for piloting the new model prior to full implementation, accompanied by periodic assessments to ensure fiscal sustainability and fairness. By ensuring that allowances correspond appropriately to health personnel’s contributions and professional risks, the study contributes to the development of a more efficient, equitable, and sustainable civil servant remuneration system in decentralized governance settings.