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Public Sector Low Wages To Go Up Until 2015, High Wages To Freeze – Romanian PM

The unitary pay law for the public sector enables the accelerated increase of low wages until 2015 and triggers the freezing of high salaries for a certain period, until the difference between the minimum and the maximum pay will be reduced, Romanian Prime Minister Emil Boc said Tuesday.
Public Sector Low Wages To Go Up Until 2015, High Wages To Freeze - Romanian PM
25 aug. 2009, 12:27, English

He reminded that the Executive’s plan is to make the minimum wage equal the 15th part of the maximum wage, from the current ratio of 1:29, and said the existing gross wage will not decrease following the enforcement of the new law.

Boc said the people who will enter the system will not have a lower salary than the one for the equivalent position.

The basic salary will be the main element to calculate the income, and a new hierarchy of salaries will be drafted, based on the complexity and importance of the activity and on the level of education.

The representatives of the Government, the unionists and the employers’ associations are discussing on Tuesday the final version of the unitary pay draft law in the public sector.

The hierarchy quotients within the unitary pay draft law were reduced by nearly 25% after a financial analysis performed by the Finance Ministry. A month and a half ago, the Government operated another adjustment of the quotients by some 40%.

The Government is analyzing a possible stipulation in the unitary pay law, according to which the minimum wage might be half of the average wage and the wage fund might fall from 9.4% of GDP in 2009 to 6% of GDP in 2015.

The Romanian Government plans to assume responsibility in Parliament, on September 2, for a set of laws which includes the unitary pay law in the public sector.