Romania Fin Min: All Public Sector Wages Cut By 25%; New Salary Sys To Be Elaborated

Vladescu stressed the new salary system will be based on a professional hierarchy for each and every employee in the public sector, without major discrepancies at the level of budget sectors.

Vladescu underscored that the hierarchy will be equal, regardless of whether an employee works in a city hall or in the central administration, provided professional tasks and attributions are equal, and without major discrepancies at the level of budget sectors.

According to the minister, the new system will also reduce the ratio between the lowest and highest salary in the public sector.

Romanian President Traian Basescu said Thursday, after talks with International Monetary Fund officials, that pensions will decrease by 15% and salary funds in the public sector by 25%, which will also impact the minimum wage, adding subsidies will be drastically reduced.

The IMF mission is in Romania to decide whether to disburse a fifth installment worth EUR850 million of a total stand-by loan of EUR13 billion. In a statement released Friday, the IMF said Romania's austerity plan to cut public salaries and pensions by 25% and 15% respectively was developed by the authorities in Bucharest and was not proposed by the Fund.

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