Romanian Public Sector Unitary Wage Grid Won’t Apply In 2011 - Draft

The Government's note regarding the unitary wage bill, obtained by MEDIAFAX, says the provision whereby base salaries in the public sector are computed by multiplying the reference value corresponding to wage class I by the hierarchical coefficient of each position shall not apply in 2011. The reference value corresponding to class I shall be set each year through a law, according to Law no. 69/2010 on fiscal-budget responsibility.

The new public sector wage grid comprises 110 wage classes, with hierarchical coefficient 1.025 points apart. The unitary wage law normalizes certain bonuses, which were provided as incentives in 2010, by moving the relevant positions a few wage classes above their current class. The new law caps the monthly bonuses given to high-performing personnel to 2% of the total budgeted personnel expenses for each institution and to two individual base salaries per year.

Furthermore, the total value of bonuses, incentives and indemnities given by an employer may not exceed 30% of the total value of base salaries. The total value of bonuses received by an individual employee may also not exceed 30% of their salary.

Public servants working on projects financed from non-refundable post-accession EU funds, or from foreign loans taken by the state, enjoy a boost of up to 25 wage classes, according to the time allotted for their activities in each project.

Management positions are allotted two grades, selected by the employer in accordance with the employee's training, level of responsibility, experience and complexity of the activity corresponding to each bonus. Employees who have no higher education but occupy positions for which this is a requirement shall receive a salary corresponding to ten classes below the standard for the respective position. They will be allowed five years to reach the level of training required by law for these positions.

The new wage law simplifies the procedure through which rules on bonuses for working conditions may be developed. The rules will be created by each of the ministries dealing with the seven fields of budgetary activity - administration, healthcare, education, justice, culture, diplomacy, defense, public order and national defense, as well as autonomous central authorities. They would be approved via a Government decision, with the endorsement of the Labor Ministry and Finance Ministry and after consulting the union federations representing that industry.

The Government will seek the lawmakers' confidence vote to pass the public sector wage bill. Prime Minister Emil Boc said the Government will send the wage law package to Parliament Monday, November 22, to start the procedures. He said the package includes two acts, a frame law on state employees' salary grids for 2011 and a law applying the wage grids.

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