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Romanian Govt Sets RON8,000 Wage Cap For State-Run Companies’ Employees

Romania’s Government decided to set at 8,000 lei (EUR1= RON4.2254) the maximum wage cap for employees of state-run companies, and 90% of the sum that exceeds this ceiling will go to a solidarity fund, people with direct knowledge of talks told MEDIAFAX late Wednesday.
Romanian Govt Sets RON8,000 Wage Cap For State-Run Companies’ Employees
17 iun. 2010, 10:24, English

The Government also decided that state representatives in the shareholder general assemblies of companies where the state owns minority stakes should donate their benefits to a solidarity fund. Those who refuse to comply with this decision will be replaced from the General Assembly of Shareholders.

People close to the matter told MEDIAFAX early June that the Government would set a maximum wage ceiling for employees of state-run companies and public institutions, and 70% of the sum exceeding the cap would go to a solidarity fund. The sources said back then that the cap would be significantly higher than the average wage and estimated it would probably be set at around RON5,000.

Romania’s Government survived a no-confidence motion Tuesday against its austerity measures, which will now be passed into legislation. The decisions taken by the Government aim to slash public spending and bring the budget deficit down to 6.8% of GDP this year, from 7.4% of GDP in 2009.