Romania Freezes Public Sector Wages Until Yearend

Prime Minister Emil Boc said, at the end of the government meeting Tuesday, that the Executive is likely to discuss potential wage hikes in the public sector if it has the necessary financial resources to do that, based on savings also obtained from restructuring government-run agencies.

Boc stressed the government will not reduce wages and pensions and will continue to pay them. He added the executive would strive to find ways to protect mainly low-income people, if it manages to obtain financial resources from savings at the level of public central administration.

The executive decided last month to postpone any wage hikes in the public sector until the end of the year to allow the completion and application of a single and unitary wage law.

It then reconsidered the decision and said wage freezing will be applied for just one month, until end April.