The purpose of this study is to identify the financial elements of remuneration and its motivational features; to describe specific delimitations for the remuneration system in the public sector, and, on the basis of this information, to create a model for a possible remuneration package structure and to predict its future effect on the motivational level of public sector employees. This study provides an analysis of the existing remuneration package structure for public servants in Latvia and, based on a theoretical background, it offers proposals for the improvement of a remuneration package structure that aims to ensure its functionality and to provide possibilities to motivate employees. As a result of this analysis, the general and motivating parts of a remuneration package were defined, the last being divided into fixed and variable parts. An examination of the appropriate legislation has lead to the conclusion that the present combination of financial elements of remuneration has neither a clearly fixed, nor a clearly variable nature. Two alternative structures for a remuneration package have been proposed, namely, a fixed remuneration package structure and a remuneration package with a significant proportion of variable part. In the case of implementation of a fixed remuneration package structure it is forecast that all transparency and fairness (equality) principles will be met, stability of the remuneration system will be ensured, and, as well, a positive image of the public sector within the labour market will be sustained. The implementation of a remuneration package with significant variable part should ensure a stronger link between the level of remuneration and job output of employee, as well as to provide more flexible possibilities to stimulate employees for immediate actions. For the practical implementation of both proposed alternatives and for a revision of current remuneration levels in nominal terms, the authors propose the utilisation of an employee job output and remuneration level correlation matrix, thus ensuring an optimal equilibrium of output and remuneration and a targeted usage of remuneration funds.