Romania Sees Public Spending Dn By RON148M On Limited Wage Bonuses – Sources

Earlier Saturday, the government approved the first budget revision of 2009, the introduction of the lump sum tax for companies, as well as putting a cap on wage bonuses in the public sector.

The measures include limited bonuses for managerial positions and wage increases for employees who administrate European funds.

In addition, the government will cancel wage hikes for certain categories of public servants and lower to a minimum other wages.

The 75% sum that can currently be added to the base wages of employees managing funds assigned to Romanian within programs such as PHARE, SAPARD and ISPA will be the top limit, and the staff’s performance will be evaluated every six months and raises will be applied depending on these evaluations.

Same measures will apply for employees of Romania’s Agency for Payments and Intervention in Agriculture.

The Romanian government will also annul the 75% raise applied to the base wages of staff managing reimbursable and non-reimbursable loans, as well as those for staff checking procedures to assign public procurement contracts.

The 55% raise applied to the base wage of public managers is also cancelled. However, public managers still benefit from several types of bonuses, including seniority and efficiency bonuses.