New public sector wage law reaches Romanian Parliament

Romania’s labor minister Lia Olguta Vasilescu submitted the draft of the public-sector wage law to the Parliament yesterday. The draft bill was signed by 205 PSD and ALDE MPs. Vasilescu said that the submitted draft law only suffered minor changes compared to the initial version and that the important provisions haven’t been modified. The minister wants to have the law adopted and producing effects starting July 1 this year. She estimates that one month is enough for the bill to be discussed and approved by the Parliament and the second month is a buffer, in case the President sends the law back to the Parliament or someone challenges it at the Constitutional Court. The public wage law provides higher salaries for all categories of public employees. Doctors’ wages should double by next year while the teachers’ wages should also double over the next five years. The law provides that the highest salary in the public sector can’t be more than 12 times higher than the lowest salary. Economists estimate that the new law’s impact on the state budget would amount to some RON 60 billion, double what the Government estimates, and would significantly impact public finances. Private companies have also criticized the new law, which further widens the pay gap between employees in the public and private sectors. Romania’s governing coalition presents new pay law editor@romania-insider.com