Prime Minister Victor Ponta said recently the Government is considering taxing public sector wages by an extra 16% for amounts in excess of 4,500 lei (EUR1000) per month.

He added that the new measure would target only the public sector and might be applied starting the following year.

At the end of last year, the Executive decided to extend in 2012 a measure capping the pay of state company managers at RON4,800 from RON20,000-RON28.000.

In 2009, authorities also decided to drastically cut the pay granted to the members of administration boards in state companies and autonomous departments to 1% of managers’ wages. (EUR1=EON4.4626)