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| STATE SALARIES UNDER CRISIS CONDITIONS 23/04/2009 |
| (2009-04-23) |
| Last updated: 2009-04-24 16:59 EET |
Based on consultations with social partners, a hierarchy of positions and a salary scheme will be designed. According to prime minister Emil Boc, the new law will be valid for 3 years, and will eliminate inconsistencies and gaps in the system. Emil Boc:
”In essence, the law will be applied as of 2010, and it will eliminate categories that were made privileged by special laws issued along the years. From this point of view, what matters first and foremost is to keep control over the system of state salaries in this country, and for each social category to receive recognition for the work that they do in the public sector”.
The prime minister said that very large salaries will be frozen for a few years, or will grow very slowly, and the small ones will be increased at a higher pace. The ratio between the lowest and the highest salary will be no higher than 1 to 15, and bonuses will be no more than 30% of base salaries. Emil Boc said that no state employee will have their salaries lowered by the law, instead they may only get lower salary income.
Labor Minister Marian Sîrbu said that it was agreed with social partners to avoid lay-offs, especially during the crisis, and money for raising small salaries will be diverted by downsizing positions made vacant by retirees. If the government sees the law on the flat salary rate as a means of eliminating the income gap between various state employees, some of the latter consider themselves treated unjustly. The main bone of contention is the organization of positions in the state system, and of matching various different positions.
This flat salary law is one of the conditions imposed by the IMF in return for the loan agreement. Romanian authorities were warned that they would have to revamp the pension system and reduce state spending, the amount of the GDP spent on state employee wages, and the bonus to base salary ratio. The IMF, in its latest forecast, said that Romania will have minus 4.1% GDP growth in 2009, a current account deficit that will go down to 7.5%, and 5.9% inflation, percentages that are closer to the figures that are expected by the government to result from these latest measures.
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