Romanian Public Servants Won RON530M In Back Pay Through Rulings In 2011

Romanian public sector employees won salary rights in the amount of 530 million lei (EUR128 million) through court decisions in the first four months of 2011, which will be paid by the government in installments until 2014, according to a draft emergency ordinance.

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The amounts will be adjusted for inflation when paid.

By the end of last year, the salary rights won in court by employees of the public sector totaled RON7.4 billion, and almost RON8 billion by the present time, meaning around 1.5% of the gross domestic product. The entire sum will be paid over the next three years.

Salary rights won in court by teachers account for over half the total amount.

The draft says that the only way these back-payments could be disbursed without putting Romania off its target budget deficit is by spreading their payment over a number of years.

In its agreement with the International Monetary Fund, the Government has committed to reducing the budget deficit to 4.4% of the GDP this year and below 3% in 2012.

(EUR1=RON4.1263)

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