Romanian Ctrl Bk, Securities Commission, Pension Regulator Employees Also Affected By Wage Cut Plan

According to the draft law concerning budget expenditure cuts, for which the Government will seek a confidence vote in Parliament, public sector employees' salaries and other wage bonuses and benefits will be reduced by 25%. Employees whose reduced income will be lower than the minimum gross salary, will be granted a total amount of 600 lei (EUR1=RON4.1724).

The 25% salary reduction will also apply to employees of public authorities and institutions regardless of their financing sources.

The draft law states that the wage-slash measure will affect employees of the central bank, the National Securities Commission, the Private Pension Fund Regulator and the Insurance Regulator.

Prime Minister Emil Boc said Wednesday the Government will seek a confidence vote in Parliament for two draft laws, one concerning budget expenditure cuts, and the other regulating the new contribution-based pension system and reevaluating disability pensions. The draft laws will be submitted to Parliament after they are approved by the Economic and Social Economic Council.

The 25% cut in public sector wages is part of a cost-cutting plan the Government will implement in order to bring the budget deficit to below 6.8% of the GDP from 7.3% last year and meet the agreement for a EUR20 billion rescue loan from the IMF, EU and the World Bank.

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