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Public sector wage law (Unified wage bill)

June 7, 2017

The Parliament of Romania passed on Wednesday, 7 June 2017, the Public sector wage law. The bill was passed by a large majority (188 votes), mainly consisting of deputies from the ruling coalition parties. Another 17 opposition deputies also voted to pass the law.

Under the provisions of the Constitution, laws are promulgated by President Klaus Iohannis.

The parliamentary opposition has 2 days to challenge the unified wage law before the Constitutional Court of Romania (CCR). USR, an opposition party, has already announced it will ask CCR to review the bill.

 

Main provisions of the law:

  • Wages are to increase gradually over the next six years, from 2018 to 2022.

  • The bill says that in 2022 the base salaries will be calculated by reference to a minimum wage of 2,500 lei (about €555). The minimum wage is currently 1,450 lei (about €322)…

 

The social and economic impact of the wage law:

  • Originally, the projected budgetary impact was 32 billion lei by 2022. After the latest amendments to the law passed by the Parliament the burden will be close to 30 billion lei just for 2018, and will reach 50 to 60 billion lei by 2022, according to the Fiscal Council…

     

     

     

     

     

     

     

     

     

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