This article investigates the motivational challenges faced by village elders within the context of enhancing their labor productivity. The authors analyze relevant legal frameworks to identify potential legal instruments for safeguarding the status of village elders through economic incentives. The study of motivational factors reveals that the legal status of village elders, specifically whether they are considered employees and subjects of labor relations, remains a contentious issue. This uncertainty hinders the development of effective motivational strategies, impeding efforts by regional governmental entities to leverage economic levers in addressing the problem. The authors’ review of scholarly literature concerning the status and motivation of village elders confirms the absence of extant solutions that effectively address motivational deficits and offer more concrete definitions of their professional responsibilities within their designated territories. Synthesizing regulatory frameworks, practical experiences, and existing research, the authors propose a solution involving the conditional allocation of financial remuneration to these representatives of rural territories. This approach simultaneously solidifies their status as subjects of labor relations and incentivizes the attainment of favorable socioeconomic outcomes. Recognizing the multi-tiered budgetary mechanisms established by legislation, the proposed solution, upon successful validation, could be implemented across all rural settlements. The proposed framework significantly enhances the motivational aspects for village elders, whose status is reinforced not only through assigned authorities but also through demonstrably positive socioeconomic transformations. Furthermore, the financial dimension of the motivational strategy explicitly accounts for the budgetary processes at different governance levels.