EXCLUSIVE: Romanian Govt Strategy For 2011-2013: Wage Raises Tied To Layoffs

Pay raises in the Romanian public sector will be conditioned on staff cuts and social-economic indicators, while ministers and other officials will be forbidden from granting deductions or new bonuses without special exemption provided by law.

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These salary restrictions are included in the Government's fiscal-budget strategy for 2011-2013, obtained by MEDIAFAX.

The document, approved Wednesday by the Government, says yearly wage increases could be enacted, but only matched by a gradual decrease in the share of staff expenses in public spending.

Starting with January 1, 2011 and until December 31, 2012, the public sector wage and ranking system will be reorganized and simplified by reducing the number of positions, moving gradually towards nominal salaries, and revising the Labor Code and law on collective labor contracts to allow "greater flexibility" as regards salaries.

The document also states the 13th salary and vacation bonus for public sector employees will be eliminated as of 2011.

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