The government's end-of-year surprise: Civil servant salaries to drop 15 percent in 2010!
Publish date: 17-09-2009State employees will have their salaries cut by 15 percent in 2010, regardless of what the salary grid indicates, according to stipulations contained in two of the three bills for which the government is seeking a confidence vote in parliament, analyzed by Money.ro. A 15 percent drop in wages in 2010 is equal to two months of salaries.
But how does this actually work? On the one hand, one law stipulates a 15 percent drop in state employee revenues until December, and the second freezes these at this level.
As such, revenues must drop as early as the last quarter in 2009, according to the draft law concerning the rationalization of public spending. The average drop is 15.1 percent for October, November and December, and this will be put into effect through the ten days of unpaid holidays.
Another bill, concerning the single salary system, stipulates that revenues be frozen in 2010 to the December 2009 level.
What solutions do ministries have? They must cut the 15 percent of expenditure by lowering bonuses paid, by laying off staff, or by a combination of the two. Only base salaries will be maintained at the same level, which means, however, that if there are no bonuses to be cut for some civil servants, more of the bonuses must be cut for those who do receive these, or there must be additional layoffs.
standard.money.ro
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