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EXCLUSIVE: Romanian State-Run Cos Must Freeze Employment, Limit Wage Spending In ‘11 – Draft Budget

Romanian state-run companies and autonomous departments are compelled to freeze hiring next year so they do not exceed the number of employees allowed for 2010, according to the final form of the country’s 2011 draft state budget, obtained by MEDIAFAX.
EXCLUSIVE: Romanian State-Run Cos Must Freeze Employment, Limit Wage Spending In ‘11 – Draft Budget
Ioana Tudor
25 nov. 2010, 09:12, English

According to the document, state-owned companies that register losses or receive subsidies from the state budget are compelled to limit salary expenses at this year’s level.

State companies or departments that posted profit in 2010 can increase wages, but the increase level should not exceed the inflation rate estimated for 2011. The draft budget estimates the inflation rate will be of 5.3% next year.

The Romanian Government and the International Monetary Fund agreed that state-owned companies’ and autonomous departments’ wage policies will be set annually, through the state budget law.

The draft act will be approved by the Government and will be forwarded to the Parliament.