The country’s 2013 draft state budget provides a wage fund of EUR10.2 billion.
The staff spending ceiling increased as Romania decided to restore public wages to the level previous to austerity cuts. An ordinance approved by the Parliament in October states the first wage raise, of 8%, will be operated in June 2012 and the second, of 7.4% or 2.3%, on December 1.
In 2010, the government announced a series of austerity measures to stimulate economic growth and reduce the country’s budget deficit, including a 25% salary cut in the public sector and a five-percentage increase of the value added tax rate.