The prime minister said public sector wages might be increased staring January 1, 2012. He highlighted that wage hikes depend on the country’s economic growth, and added the issue will be discussed when the state budget for 2012 is drafted.
Finance Minister Gheorghe Ialomitianu said it is too soon to talk about wage raises and reiterated that this year’s budget revision will focus on allotting money for investments, creating new jobs and paying arrears.
Earlier Monday, Varujan Pambuccian, leader of national minorities’ group, told online newspaper Gandul that the ruling coalition decided to raise wages in the public sector starting October 1. He said public sector employees’ salaries might be increased by 5%, and added authorities will continue talks on this subject to see if a 5% wage raise is sustainable.
Jeffrey Franks, head of the International Monetary Fund mission to the country, said Monday that, even though the Government may consider there is room for public sector wage raises, Romania should only raise them following more job cuts.
Franks said the Government will decide how big the raise will be and when it is to be operated, but public sector wage hikes may only occur after more layoffs because the sector still has too many employees.
Joint teams from the IMF and the World Bank visited Romania for the second review of a EUR5 billion precautionary loan arrangement.
The Government committed in the agreement signed in May to downsize the public sector to 1.29 million employees. Last year, authorities in Bucharest implemented a series of fiscal and social measures aimed to cut staff spending and increase budget revenues. Public sector employees had to put up with a significant wage cut.