Romania’s defence minister, Radu Miruță, said the ministry will implement a 10% cut in its payroll envelope this year, while avoiding redundancies and direct wage cuts, according to comments made to Antena 3, as reported by Digi24. He stated that the reduction would be achieved mainly by eliminating bonuses and other variable pay components. 

In parallel, the Ministry of Defence will increase the retirement age in the sector, a measure he described as part of a broader effort to curb public spending. 

Both measures are expected to be formalised by Thursday, January 15, so they can be reflected in the 2026 budget planning process, which the Ministry of Finance is due to begin later this week.

The defence minister said the changes are aligned with a government-wide decision requiring all ministries to cut personnel-related expenditure by 10%. The cabinet is expected to approve the public administration law by January 15, setting out the framework for the reduction in staffing costs across central and local government.

As part of the same legislative package, the government plans to ban the accumulation of a public pension with a salary earned in the state sector. The measure would apply across public administration, including defence and interior institutions.

Radu Miruță said that increasing the retirement age in the defence sector, as well as in the Ministry of Internal Affairs, represents a contribution to the wider fiscal adjustment effort and is intended to improve perceptions of fairness. Employees in these sectors account for a significant share of so-called special pensions, which are largely financed from the state budget and often paid to staff retiring before the standard retirement age.

The defence minister did not provide specific details on how much the retirement age would be increased or how many employees would be affected. He said further technical details would be included in the legislation to be adopted by the government.

The measures come amid mounting pressure on the coalition government to rein in public expenditure and prepare a tighter budget framework for 2026, as fiscal consolidation remains a key priority for the authorities.

iulian@romania-insider.com

(Photo source: Inquam Photos/Cordin Unici)