14:27, 12 Feb. 2025
Boc said that the decision to cap high salaries earned by employees of certain state-run companies is an additional measure to be applied alongside others which entail cutting spending on goods and services in public institutions and reducing the number of Government agencies.
People close to the matter told MEDIAFAX last week that Romania’s Government would set a maximum wage ceiling for employees of state-run companies and public institutions, and 70% of the sum exceeding this cap would go to a solidarity fund. According to the sources, the ceiling will be significantly higher than the average wage and will probably be set around 5,000 lei (EUR1=RON4.2180).
The procedure will be regulated through a Government memorandum. According to this document, the shareholders and boards of state-owned companies will be empowered to request that managers transfer certain amounts to the solidarity fund.
The Government also announced that budgets of Romanian state-owned companies will be reevaluated, as a first step towards reducing salaries, but the budgets of companies that have already been restructured will not be reevaluated.
The Government seeks the lawmakers’ confidence vote for its austerity plan, which cuts public sector wages, pensions and social welfare benefits.