BUSINESS

Government to keep restrictions for public employees in 2014

PM Ponta said that there would be no salary rises in 2013 and taxes and fees will not increase till the end of this year. State employees will not receive bonus or holiday food vouchers and some of 1989 revolutionaries will no longer receive reparatory compensation.

According to an ordinance draft, the government’s restrictions on food vouchers, gift vouchers or holiday vouchers being given to public employees, as well as restrictions on monthly reparatory compensation for a category of revolutionaries and railroad transport benefits will remain in effect next year. The above mentioned benefits have not been given since 2009 and the current governance intends to stop payments in 2014 as well.
Thus, regardless of the financing and subordination system, public, central and local institutions and authorities – including activities fully funded through own incomes attached to public institutions, but with the exception of institutions fully funded through own incomes and ambulance services – will not give food vouchers, gift vouchers or holiday vouchers to their employees in the following year, according to the Ministry of Finance draft.
The Boc governance had decided not to give a certain category of revolutionaries the monthly reparatory compensation stipulated in the Law on acknowledging the heroes, martyrs and fighters who contributed to the Romanian revolution victory of December 1989, and to the people who sacrificed their lives or have had to suffer from the anti-Communist labour riot in Brasov on November 1987. The government will limit the number of deductions or, if applicable, railroad transport benefits to 3 round trips or 6 one-way trips, according to GO 112/1999 on expense-free travel for work or personal reasons with Romanian trains.

Prime Minister Victor Ponta said the Antena 3 TV station on Sunday that there would be no salary rises in 2013 and taxes and fees will not increase till the end of this year.
‘Till the end of this year no taxes will increase. It is only the excise for yachts, clocks and watches and alcohol. If somebody scolds me for increasing the excise for clocks and watches in order to cut the VAT for bread, I am quite happy. Starting on January 2014, in order to make up for the fact that we no longer take the contribution for health from pensioners living on a pension under RON 740, pensioners that also have incomes from rents pay 5.5 percent for health,’ the Premier told. When asked if the Romanians can hope for salary rises, Ponta said: ‘Not this year!’ On the other hand, the Premier emphasized the fact that in July Romania collected EUR 731 M from European funds and in six years they collected about EUR 1 bln. Ponta added that he wanted to talk with all the parliamentary groups about building the budget for 2014.

Public company salary rises limited to 60 pc

According to an emergency ordinance draft of MFP (the Ministry of Public Finance) and cited by Mediafax, rises in the salary of public operator or public company employees will be restricted to a maximum of 60 percent of the productivity bonus; the rises include potential premiums and bonuses given by economic agents. The draft also stipulates that, in accordance with the law, joint labour contracts must be negotiated after the income and expense budgets of economic agents have been approved. The net average salary per month is determined as the ratio between salary expenses and the average number of employees/number of corresponding months.
The legislative draft also stipulates that labour productivity expressed in value unites is calculated as the ratio between total exploitation incomes and the average number of employees, while labour productivity expressed in physical units is calculated as the ratio between the and the average number of employees and the quantity of end products resulted from the basic activity, – according to the main scope of business – the value of which can be found in exploitation incomes and is the equivalent of over 50 percent of the level of exploitation incomes.
If the execution rate of total incomes approved in income and expense budgets has been below 90 percent for the preceding two years, total incomes for the current year will be determined at a level no higher than the execution level of the preceding year. The expense limit is calculated by taking into account the number of months for which the last income and expense budget was approved.
Additionally, the ordinance sets sanctions of contraventional fines worth between RON 5.000 and RON 10.000 for failure to submit budgets in time to central or local authorities, failure to comply with expense limits established for the budget execution or for exceeding the level of outstanding payments approved through the income and expense budget. If the expense limits established up to the date at which the budget for the current year has been approved are exceeded, the contraventional fine could amount to the difference between the expense limit and the actual incurred expenses.

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