State employees paid better than Romania's president could see their salaries frozen until 2015

Employees working in the public sector who earn more than the Romanian president will not receive any salary hikes until 2015 and the largest salary cannot exceed 15 times the one of a beginner in six years time, declared for NewsIn people inside the government.

Leaders of the governing parties agreed this morning on the principles to establish the salary law in the public field and decided the proportion between the smallest wage and the largest one to be of 1 to 15, down from 1 to 72 as before.

"The implementation of the new wage system will be completed in five years, through differentiated salary hikes. The law will enter into force in 2010," according to a document obtained by NewsIn.

The base salary will thus become the main element of the salary gain, after some general bonuses are incorporated.

Representatives of the Labor Ministry declared for NewsIn that the deadline for applying the law should be extended to 2015, given the unfavorable economic background in 2009 and 2010.

However, shifting from the current salary system to the new one will not allow for anybody to see a slash in the gross salary calculated according to the present regulations.

Vice-premier Dan Nica said earlier the principles agreed upon today will be discussed in the government meeting later today. He mentioned the hierarchy will be completed according to the European salary system, just like in Germany, France, Great Britain, Spain or Italy.

Nica said the largest wage of an employee in the public system will be 15-fold higher the most than the smallest one. He also announced ruling parties target that the sole salary law in the public sector starts to impinges upon employees from 2010.

Premier Emil Boc said last week that Romania began negotiations with European partners to find ways to finance the budget gap, which would diminish the effects of the crisis. Negotiations ended with the promise of a 20-billion euro external loan from the International Monetary Fund and other international lenders.

The four conditions imposed by the IMF are enforcing the budget revision bill by May 4, enforcing the singular salary system, the fiscal responsibility bill and the pension system revision law, Boc said.

NewsIn