Object of the study: processes of formation and administration of the compensation system in the budgetary sphere of Ukraine; the purpose of the research: development of theoretical and methodological foundations and development of scientific and practical recommendations on the formation of a compensation system in the budget sphere of Ukraine; research methods and equipment: theoretical synthesis, comparison, complex analysis and synthesis, induction and deduction, structural and logical analysis, system analysis, monographic method, methods of statistical and comparative analysis, methods of economic-mathematical modeling and forecasting, graphic method; theoretical and practical results: the conceptual framework for the formation of a compensation system in the budget sphere is developed, namely, on the basis of the study of the provisions of modern compensatory theories and taking into account the specifics of employment in the budget sphere, the conceptual scheme of the formation of a compensation system in the budget sphere containing the tools and principles of the formation of the compensation system and its components is proposed, its functions and creates a favorable incentive-compensation environment that will provide a decent compensation for the labour efforts of employees of the budget sphere and their active motivation to improve the quality of work and the achievement of organizational goals; structural-logical model of the formation of the compensation system in the budget sphere through the streamlining and clarification of the stages of its formation, taking into account the specificity employment in the budget sphere and factors determining the design of the compensation package; the organizational and economic principles of financial incentives for employees of the budget sphere, which, unlike existing approaches, are based on a comprehensive assessment of the quality of labour, namely, the organizational and economic mechanism of stimulation of employees of institutions of higher education using the coefficient of quality of labour based on the annual rating of teachers, scientific staff and units and consists of five blocks: normative-informational, organizational-methodical, financial, calculation and analytical oh monitored The proposed mechanism can be adapted for other branches of the budget sphere and will promote rational spending of budget funds on staff incentives and increase of level of motivation of employees; methodological approaches to assessing the results of work of staff of budgetary institutions on the basis of determining the coefficient of quality of labour (for example, institutions of higher education), which, unlike existing ones, foresees a comprehensive assessment of the results of labour on the basis of their measurement in three areas: assessment of current performance, external evaluation, evaluation of qualification achievements and allow to provide flexibility, fairness and transparency of mechanisms of material remuneration of employees; the concept-categorical apparatus of the research, namely, on the basis of the study of the evolution of compensatory theories and the systematization of theoretical and methodological approaches to the interpretation of the basic categories of compensatory management, provided the author's definition of the category of compensation system, which is proposed to be regarded as a component of the human resources management system at the appropriate level representing a set of interconnected regulatory, organizational, economic and content components that are aimed at substantiation the strategic and current tasks, the structure and filling of the compensation package, the definition of resource support for staff compensation in order to ensure the quality of his working life and interest in improving the results of work; the component structure of the compensation system of the budgetary sphere in Ukraine at the expense of systematization of the components of the compensation package in certain branches of the budget sphere and, in contrast to the existing approaches, distinguishing three components of the components: reproductive-compensating, stimulating and social package that will optimize the structure of the compensation system and ensure application address-target approach to the formation of compensation package; degree of implementation: developments implemented in the practical activities of Department of State Property Management of the Ministry of Agrarian Policy and Food of Ukraine, Department of Health of Vinnytsia Oblast State Administration, Primary Trade Union Organization of the Vadym Hetman Kyiv National Economic University, in the educational process of Vasyl’ Stus Donetsk National University; scope: improvement of the process of forming a compensation system in the budget sphere of Ukraine.
