freeze

Romania’s Government will not increase pensions in 2011 and will eliminate the 13th salary, vacation bonuses and heating subsidies, according to an additional letter of intent to the stand-by agreement with the International Monetary Fund, obtained by MEDIAFAX.

Hungarian minority party lawmaker Gyorgy Frunda has presented several amendments to the draft laws for which the ruling coalition, which includes the Hungarian minority party, plans to seek a confidence vote in Parliament Monday and proposed, among others, to freeze pensions until December 31, 2011.

Romanian finance minister Gheorghe Pogea said Thursday salaries for most public sector employees will freeze in 2010 and will be increased in 2011, while the average growth of the public sector wages will reach 56%.

The Romanian government approved the draft emergency act freezing public sector wages between May 1 and December 31, which actually extends a recent government decision to postpone wage hikes, which expires end April.

Romania’s budget revision, following the loan agreement with the International Monetary Fund and European Commission, stipulates the freezing of public jobs in order to cut budget expenses, ministerial sources told MEDIAFAX Wednesday.