DOCUMENT: Emergency Ordinance Freezing Public Employee Salaries



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The government presented the draft ordinance on measures for the 2021 budget on Monday night.

Prime Minister Florin Cîţu announced that the ordinance on measures for the 2021 budget will be made transparent on Monday evening and will be approved at the government meeting on Wednesday.

The full DOCUMENT can be downloaded at the end of this article.

The first day of work of the new Government also came with a first announcement. Starting on January 1 of next year, the minimum wage in the economy will be increased by 40 net lei. This means that it will increase by 3%, up to 1386 lei. The announcement was made by Prime Minister Florin Cîţu after heated discussions with unions and employers.

However, the solution found by the Government is not satisfactory either for the workers’ representatives or for those of the employers. On the one hand, the trade unionists demanded a net increase of almost 100 lei, while the businessmen demanded its freezing at the current level. The final decision, which expects more than 1 million Romanians to pay the minimum wage in the economy, will be initialed by the government this week.

On the other hand, public employees will not have any salary increase until the Government completes an analysis on the salary law.

The budget was also discussed Monday at the Cotroceni Palace, where President Klaus Iohannis met for the first time since Prime Minister Florin Cîţu and Finance Minister Alexandru Nazare were in office. However, the budget for next year for 2021 is far from being finalized, it also needs the approval of Parliament, which could arrive only in mid-January.

The government also wants to increase child benefits by 10% starting January 1 of next year and increase them by another 10% starting in August. The executive is also considering an increase in pensions, but of only 8 percent, instead of 40%, as established by current law.

The budget for next year will be under great pressure. We need more money for health, but also for pensions, salaries and subsidies.

The Government is preparing the extension of some support measures to companies in the HORECA field, but also to those that are technically unemployed or with reduced hours. In addition, holiday vouchers worth 1,450 lei will be awarded next year.

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