Romania's new salary law could freeze incomes for over 400,000 public workers

Romania's upcoming public sector salary law, a key commitment under the National Recovery and Resilience Plan (PNRR), could lead to stagnant incomes for hundreds of thousands of state employees in the coming years. Initial calculations suggest that over 400,000 public sector workers might see their salaries frozen at current levels.

According to reports, approximately one-third of Romania's public sector workforce, estimated at around 1.27 million employees, currently earns more than the new law's proposed salary scales. These individuals are expected to maintain their current earnings until the new scales are adjusted to match their existing remuneration. This situation affects an estimated 420,000 to 445,000 people.

The new law introduces phased salary increases, even for appointed public officials. Government members and other high-ranking officials will not immediately reach the final coefficients in the new scale but will benefit from progressive increases until 2031. The law has been in development for years but has faced repeated delays.

Public sector employees, particularly in healthcare, have previously protested against the new salary law. Healthcare workers recently went on strike, citing extreme staff shortages and expressing anger over potential income reductions of up to 1,000 lei under the new system. Union leaders have criticized the lack of consultation and have warned of a general strike.