Romanian Salary Rights Won In Court Hit RON7B, Payment Postponed For 2012

Salary rights won in court by employees of public institutions financed entirely from the state budget and the social security budget hit RON3.77 billion, and salary rights won in court by pre-university education units staff reached RON3.22 billion, according to the explanatory note of a draft emergency ordinance drawn up by the Finance Ministry.

The Government will pay the respective salary rights starting 2012 in an interval of three years. Beneficiaries will receive one third of the total sum annually.

Last year, the Government decided to pay salary rights won in court by the end of 2009 in three tranches, namely 34% in 2010, 33% in 2011 and 33% in 2012, while wage rights won through final court decisions in 2010 would be paid in the 2011-2013 interval.

In May 2010, the Finance Ministry drafted an act which postponed by two years the payment of salary rights won in court, which amounted to RON2.16 billion.

During negotiations with the IMF, the Government pledged to stay within a budget deficit of 6.8% of the GDP in 2010 and to reduce it to 4.4% of GDP in 2011.