Labor costs constitute a substantial part of budget expenditures in every country. Public administrators are constantly in search for a more efficient pay system which will provide the same output with fewer employees or more output with the same number of employees. Therefore, the public administrators, as well as the managers in the private sector in different countries try to establish the salaries of government officials approximately on the same levels as in the market (Rexed et al. 2007). Salaries on the market level give an opportunity to attract qualified labor into the government sector. The competition for attracting qualified labor is a challenge for every organization, including the public sector. If salaries in the public sector are lower than in the private sector, qualified employees, as a rule, will try to find a job in the private sector more often than in the public sector.