BUSINESS

Wage law could be changed again

Salaries in the public sector to depend on individual professional performance.

Salaries in the public sector will include a fixed sum and a variable part that will depend on the individual professional performance of the employees. The system will be implemented with the new public sector remuneration law prepared to next year, according to an official document obtained by Mediafax yesterday. There will still be a maximum and minimum amount, but there will also be a sum that will vary according to individual professional performance. ‘Given the multitude of remuneration forms specific to each public sector (education, health, defence, police, civil service, sports, foreign affairs), a normative project is needed to regulate the wages of the various categories of personnel between a maximum and a minimum limit, a variable part according to individual professional performance and a pay roll envelope for every paying authority’, the document states. The paper further notes that the framework-law drafted three years ago wanted to achieve a ratio between the minimum and maximum base salary of 1:15, the limitation of the number of remuneration classes to 110 and the capping of premiums and bonuses to no more than 30 per cent of the base salary. Because of financial constraints, however, the law could not be implemented and the same imbalances remained, with a 1:35 minimum to maximum base salary, over 400 different classes of remuneration and a weight of bonuses and premiums of 51 per cent of the salary. According to latest available data from the Government, when the 2013 budget was drafted, here were 1,187 M employees in the public sector.
A government document obtained from sources shows salaries in the public sector will be annually raised under the new wage law beginning with 2014, in successive stages, but only in the case of selected workers – those whose base salary is smaller than the one resulting from the enforcement of the new law.
An international consultant for the drafting
The same official document obtained by Mediafax also states that the Government will hire an international consultant for the drafting of the new public sector salary law after the framework-law on the remuneration in the public sector was prepared with assistance from the World Bank. The consultant will need to have relevant experience and ‘international prestige’. The proposal for the hiring of a consultant has already been made by the Labour Ministry to the Government. Later, the representatives of the Government Press Office informed that the Executive has discussed on Thursday the proposal of the Ministry of Labour of hireing a foreign consultant to draft a new law on public sector wages, but ultimately decided to reject this possibility and to use internal resources.

Average net salary down 3 pc in May, at RON 1.611

The average net salary in May was RON 1,611 lei, 3 pc smaller than April, but 5.3 per cent higher than in May 2012, the National Statistics Institute (INS) informed on Friday. In May 2013, the average gross salary was RON 2, 226 lei, 3.2 per cent lower than in April 2012. The average net salary was RON 1,611, smaller by RON 50 (3 per cent) than the previous month. The highest net salaries were paid in sectors such as oil and natural gas extraction (RON 4,067), and the lowest in hotels and restaurants (RON 863). The most important decrease of the average net salary – by 25.6 per cent – was recorded in the activities associated with financial intermediation, followed by 22.6 per cent in the segment of financial intermediation. The same INS report shows the fact that a household income dropped in Q1 to a monthly average of RON 2,521 lei, from RON 2,566 lei in October-December 2012, and expenditures also dropped from RON 2,364 to RON 2,312, the food and non-alcoholic beverages representing 41.9 per cent of the total consumption expenditure. The urban family average monthly income in Q1 was higher by 28.3 per cent than the income of rural households. The population spends more on food and non alcoholic drinks – 41.9 per cent of the total consumption expenditure, home – 22.4 per cent of which the biggest share (18.8 per cent) for operation and heating.

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