Romanian State Employees To Take Unpaid Vacations, Work Less To Cut Costs

"By reducing working hours to the equivalent of ten days, we would save 0.3% of GDP,” Pogea said during a press conference.

He explained public sector employees will take unpaid vacations, reduce their working schedule to six hours a day instead of eight or find other ways to reduce their working hours by ten days.

"It will be a combination depending on each type of activity, to ensure the continuity of public services. Other cost cutting measures will be cancelling bonuses and not paying overtime until the end of this year,” Pogea added.

Government sources told MEDIAFAX Saturday afternoon that the government and the International Monetary Fund agreed that all public sector employees, both with the central and local administration, would be sent on unpaid vacations for two to three weeks in September and November, to save 0.3% of GDP.

Sources with the Social Democratic Party, part of Romania’s ruling coalition, said Monday the IMF agreed with the elimination of a plan to lay off 150,000 public sector employees and the reduction of unpaid vacation to ten days from a previous three weeks.

Romania currently has about 1.4 million public sector employees.

Romania agreed with the IMF a EUR12.95 billion stand-by loan, as part of a EUR19.95 billion financial rescue package that also includes funds from the European Commission and other international institutions.

The first tranche, worth EUR5 billion, was released in May and entered the central bank’s reserve.

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