IMF: Public system salaries and pensions could be moderately increased in 2012

Salaries in the public sector and pensions in Romania could be slightly increased half-next year should budget revenues allow it, but will be frozen until then, said Jeffrey Franks, head of the International Monetary Fund (IMF) in Romania.

“We agreed that in the event that the market allows it, we foresee a limited increase in salaries and pensions half through 2012, within the legislation on pensions and salaries in the public area[...]. We recommend the Government takes into account the fiscal responsibility law that says no increases should be made six months before the elections. There will be an opportunity window to take into consideration such increases,” said Franks. A good option for increasing these salaries would be between 3 and 5 percent. The actual increase will be discussed during IMF's next visit to Romania, in April next year. editor@romania-insider.com