Timor-Leste, since its independence in 2002, has faced challenges in managing the growing number of civil servants, currently numbering over 13,000. Civil servants are classified under two regimes: General (GCR) and Special (SCR). This classification leads to disparities in salary, benefits, promotions, and performance evaluations, creating dissatisfaction among employees in both regimes. GCR employees enjoy regular salary increases and promotions based on performance, whereas SCR employees, despite earning higher salaries, do not receive the same opportunities for career advancement. This policy paper analyses these differences and recommends abolishing the dual regime structure. It proposes a unified system where salary progression, benefits, and promotions are based on education level, service length, and performance evaluations. Additional allowances should be provided to those working in rural areas to encourage retention and equitable service delivery. Regular external monitoring and audits are essential for effective performance management. Evidence from Indonesia supports these recommendations, showing that additional allowances and strong leadership improve employee performance and discipline.