Romanian State Employees’ Income To Decrease By 32% Starting June 1 – Union Leader

Romanian state employees will see their income reduced by about 32% starting July 1, after the 25% salary cut and the 5% VAT hike are applied, Cartel Alfa union leader Bogdan Hossu said Wednesday.

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Education union leader Simion Hancescu said teachers will be seriously impacted by the country's austerity measures to be applied starting July1. He highlighted that young teachers might give up teaching starting September 1, as they will see their wages reduced to 600 lei (EUR1=RON4.3688).

Romania's two austerity laws cutting state employees' salaries by 25% and recalculating certain categories of pensions were published Wednesday in the Official Journal, after they were promulgated by the head of state Tuesday.

The two austerity laws were forwarded to President Traian Basescu for promulgation, after the Parliament eliminated the articles that stipulated pension cuts, recently declared unconstitutional by the country's Constitutional Court.

The Government decided this weekend to increase the value added tax to 24% as of July 1, from 19%, to keep the country's budget deficit below the IMF-agreed cap of 6.8% of GDP.

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