Romania's new salary law to boost pay for over 40% of public workers

Romania is on the verge of adopting a new salary law, with political parties expected to reach a consensus next week. The legislation, which impacts approximately 1.2 million public sector employees, aims to adjust salaries across various fields, including education and auxiliary justice personnel.

Sources indicate that over 40% of public sector employees could see salary increases between 5% and 20%, as agreed upon with the European Commission. A key provision ensures that no public sector employee's salary will decrease; those currently earning above the new scales will retain their current salaries, which will remain frozen until the scales catch up. Any reduction in net income due to the loss of certain bonuses will also result in a frozen salary.

While the law is designed to bring about increases in some areas, it may also lead to dissatisfaction due to perceived inaccuracies in the current salary grids. The government is working to align with the European Commission's requirements, particularly concerning pending PNRR laws. The salary law is intended to take effect from January 1st, allowing time for validation by the Constitutional Court and publication in the Official Gazette.

Interim Minister of Labor, Dragoș Pîslaru, stated that consultations with institutions and trade unions, involving over 30 hours of meetings, revealed public sector and union requests totaling more than 20 billion lei. He acknowledged that Romania's current fiscal-budgetary commitments cannot accommodate such demands. The initial political agreement was for 8 billion lei, and discussions are ongoing with the Ministry of Finance and the European Commission to determine the maximum feasible value for the project to meet the required milestone.

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Ca urmare a acestui exerciţiu, am constatat că solicitările din partea sectorului public şi ale sindicatatelor au fost în valoare de peste 20 de miliarde de lei. În mod evident, pe structura actuală de angajamente ale României, fiscal-bugetare, lucrul acesta nu poate fi rezolvat.