LabMin Vasilescu: We’ll hike all public sector gross salaries by 25 pc, but starting on 1 January 2018

Labour Minister Olguta Vasilescu stated on Tuesday, at the Palace of Parliament, that the latest variant of the salary law agreed with the Finance Ministry stipulates that all public sector employees will have their gross salaries hiked by 25 percent starting on 1 January 2018 and that teachers and physicians will receive the promised money difference starting on March 1st. Initially, the first salary hikes were scheduled for 1 July 2017.

“There were four variants we discussed this morning. We’re talking about the final variant which we agreed on with the secretaries of state initially from the Finance Ministry and now by phone with the Finance Minister too, [variant] in which we would hike the salaries of all public sector employees by 25 percent, [hike] applied to the gross salary starting on 1 January 2018; then, starting on March 1st, a hike of another 20 percent for education sector salaries, which in addition to the 25 percent represents an overall hike of 50 percent, as promised, and with the salary grid until 2022 for physicians and nurses too, also from March 1st. This would be the variant with which we will enter the committee,” the Labour Minister pointed out.

“We had an agreement with the MFP [Finance Ministry] from the start. Now we have a 68 billion envelop that was hiked this year and even last month salaries were hiked by 20 percent at the OPC, at the SMEs, at the Environment Guards, all environment authorities. Soldiers’ pay has doubled, now starting off from the minimum salary, all these things have already had a budgetary impact on the envelop we had forecast for this year. In addition to this, there were 80 amendments in the Senate and approximately 100 amendments in the Lower Chamber. (…) Salary hikes were done, there were also some hiking of bonuses, hiked coefficient for certain categories of public sector employees and naturally we had to rethink all that the envelope means, in order to stay within 75 billion, the sum the Finances pointed to us as possible for next year,” the Labour Minister explained.

According to her, the salary law will be adopted on Wednesday.

“We’ll have to adopt it within the Lower Chamber tomorrow,” Vasilescu said.


FinMin Stefan says budgetary impact of uniform public pay bill to stand at 8.6pct of GDP in 2018


The impact of the uniform public pay bill will be standing at 8.6 percent of the Gross Domestic Product (GDP) in 2018; preferably, that should have not exceed 8 precept, but anything between 8 and 9 percent is sustainable, Finance Minister Viorel Stefan said Tuesday after meeting Prime Minister Sorin Grindeanu.

“This morning at eight we started a meeting where also attending was [Labour Minister] Olguta Vasilescu. On January 1, 2018, there will be a 25-percent increase in public pay for everyone, while on March 1, 2018 we will reach our objective of securing full coverage of the increase in pay for the public healthcare staff and the coverage of 50-percent increases in education. The effect will be a pay envelope of 75 billion lei, which bring us to 8.6 percent in terms as GDP percentage. That is the target we have been followed. I would have liked that to be close to 8 percent, but anything between 8 and 9 percent is sustainable,” said Stefan.

He mentioned that the same expenses in 2017 will stand at 66 billion lei.

“As against the 66 billion lei in 2017, which excludes meal tickets and holiday vouchers, we will bring the gross impact to 76 billion lei,” added Stefan.



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