According to Pambuccian, public sector employees’ salaries might be increased by 5%. He 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.
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