Romanian PM: Public Sector Wage Hikes Would Call For EUR2,000 Additional Taxes

The final impact, however, cannot be yet estimated, as such a wage increase would indirectly affect the private sector in Romania. Employees in the private sector would also demand wage hikes, Tariceanu said.

 

Tariceanu said he would continue to fight against the recently adopted Parliament law, which increases by 50% salaries for employees in the education system, as such an increase should be based on productivity growth.

 

Last week, the Romanian Parliament adopted a 50% wage increase of employees in the education sector. Following the announcement, other categories of state employees threatened to go on strike unless they receive similar raises.

 

The Government has already submitted at the Romanian Constitutional Court a request to analyze the Parliament’s decision to raise wages, arguing it did not abide by constitutional stipulations, as the financing sources for such a growth should be specified.