Romania: Public wage law allegedly to be delayed again, PM rejects all three proposals

The enforcement of a new public wage law will be postponed again as the prime minister rejected all three forms proposed by the labour ministry and the specialised commission dealing with the matter, ministerial sources told the online news agency profit.ro. PM Ciolos apparently has assessed all data and concluded that neither is considering the macro-economic indicators indicated by the finance ministry, none could be accepted from the costs point of view. The sources mentioned that personnel costs in the public sector might rise by RON 20-37bn.

We remind that the former cabinet had been working on a new wage bill in the public sector, aiming to reduce the differences in the wage levels, which occurred after the consecutive hikes of the minimum wage in the past years. Performance criteria in establishing wage levels and wage benefits for civil servants have been also proposed. Still, the new cabinet decided to postpone it until next year due to its effects on the state budget (very probable wage hikes for several civil servant categories), even if the former labour minister had announced last year that the law was finalised. The new labour minister said that potential wage increases resulting from the new wage law in the public sector depend on the available resources in the budget for next year, so the newly setup specialised commission for working on the law should focus on remaining in the budgetary brackets.

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