Romania Finalizes Draft Law on Public Sector Salaries, Caps Bonuses

Romania's government has finalized a draft law on public sector salaries, intended to replace the existing 2017 legislation. The proposal, which aims to balance PNRR requirements with budgetary limits, was sent to political parties for consensus. The new law is slated to take effect on December 1, 2026.

The draft establishes a reference value of 4,000 lei for calculating all public sector salaries, a slight decrease from the initially planned 4,100 lei. It also introduces a salary hierarchy with a 1:8 ratio between the lowest and highest base salaries, soldes, or monthly allowances. All public sector positions will be categorized into 12 salary grades, each with a coefficient ranging from 1.00 to 8.00. Individual base salaries will be determined by multiplying the assigned coefficient by the reference value, with additional percentages for six seniority levels.

A significant measure to control spending involves capping bonuses, allowances, and premiums at 20% of the base salary amount for each main credit authorizer. Exceptions include specific allowances like up to 40% for projects funded by non-reimbursable European funds, up to 40% for managing European and public finance resources, and standard rates for night work, overtime, and employees with disabilities. Authorizers exceeding the 20% limit face fines and must recover any excess.

The project includes a social protection clause to prevent salary reductions. Employees whose new salaries fall below their November 2026 income will receive a "transitional salary difference." This amount will gradually decrease as their base salary increases through future adjustments. Performance bonuses will be limited to a maximum of 30% of an institution's staff.