The wages of all the public servants are going to raise as of 1 January 2018 by 25 percent, on Monday night announced the Labour and Social Justice Minister, Lia Olguta Vasilescu, at the TVR1 public broadcaster.
“As of 1 January absolutely all wages will grow by 25 percent, following which what it is in payment that year and what they have in their box within the Uniform Pay Law, for each occupation it is a little box with the wage that must be attained in 2022, so in 2019, 2020, 2021 and 2022, will be divided into a quarter each year,” said Lia Olguta Vasilescu.
The Labour Minister stated that currently the entire pay system of Romania needs 63.5 billion lei, and as many as 32 billion lei will add to this sum by 2020, and that a growth by 10 billion for this year is bearable from the state budget.
“The moment the wages grow, instantly grows the consumption because they do not increase of that manner so you could go and buy yourself a yacht or I don’t know what luxury cars or castles. You are going to put this money into consumption, for clothes, food, and all these things led to the second-round effect that means taxes and duties collected by the state,” Lia Olguta Vasilescu added.
She also said that 1.8 billion lei are to be collected from the raise of the national minimum wage, which will generate contributions to the state budget.