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Uniform public pay bill was adopted by the Deputies' Chamber

The uniform public pay bill was adopted on Wednesday in the plenary meeting of the Deputies' Chamber, which is the decision-making chamber in this case, 188 to 28 and 47 abstentions.

The form of the unitary pay law submitted to the Chamber of Deputies is supported by the Government, including with respect to the budget impact of 76 billion lei calculated for 2018, Prime Minister Sorin Grindeanu stated on Wednesday. 

"I am telling you, broadly, about what is now probably the number 1 public debate - the pay Law - and which today I hope will pass the Deputies' Chamber, which is the decision-making Chamber. The Law has passed the Senate, it was granted the vote. Clearly, and yesterday (Tuesday - ed.n.) I had a discussion with the Finance Minister, the 76 billion part, roughly, for next year, is sustainable, because otherwise we would have been as straightforward as possible in saying: No, it is not sustainable," argued Sorin Grindeanu, during an event dedicated to the dialogue with the Romanian investors - the "Romanian Capital Forum". 

The premier added that "everything the Government has assumed through positive opinion is sustainable." 

"The form that was adopted yesterday (Tuesday - ed.n) in the Labor Committee, this form of the unitary pay law, is upheld by the Government. I say it as directly, frankly and without hesitation as possible. We have the financial resource and we will have it next year to support this unitary pay law," the Prime Minister also affirmed.

 

The uniform pay law provides for a phased-in rise of 56 pct in public sector wages within an envelope of 32 billion lei by 2020 and of 43 billion lei by 2022, Minister of Labor and Social Justice Lia Olguta Vasilescu on Wednesday told the Chamber of Deputies plenary. 

"The law is in line with the program approved by the Parliament of Romania and provides for a phased-in increase of public sector wages by 56 pct within a budget envelope of 32 billion lei until 2020 and of 43 billion lei by 2022. At the base of the salary pyramid, the rises are in excess of 100 percent and can be as high as 300 pct, like in the case of Defense, but they are less at the top, where some salaries were so high that the disproportion would have been impossible to correct even at the horizon of 2022," said Lia Olguta Vasilescu. 

According to the Labor Minister, salary rises in the public sector have already begun this year, as 6 billion lei have been earmarked for this purpose, and another 10 billion lei will be allocated next year. 

"The share of wages to be trimmed is less than 3 percent - and this as a result of a host of amendments that were accepted by the Committee; many of the amendments referred to the increase of coefficients so that salaries were adjusted, for management positions included. Wage rises have been enforced this year - as my colleague, Mr. Solomon, said - for several categories of public employees: 15 pct for Health and Education; 20 pct for Administration; 50 pct for Culture; 20 pct for Environmental Agencies, Environmental Guards, Consumer Protection Office staff, SMEs, so one cannot say that this law, or the government's version for it is aimed only at increasing the wages of the dignitaries. These salaries simply increase because they are on a grid assigned to the Local Public Administration and no separation could be done because everybody collecting benefits is on the same grid. But it's inappropriate to say that the wages of the dignitaries are rising, because I want you to know that the pays of officials at the top of the pyramid, for instance the ministers, the President of Romania, the leaders of the Chambers of Deputies and the Senate, are decreasing," the Labor Minister said. 

On Tuesday, Olguta Vasilescu said that the Labor Ministry had calculated a pay law impact of 75 billion lei by the end of 2018, but had to redo the calculations to keep within the wage envelope set forth by the Finance Ministry. 

"As of 1 January 2018, there will be a 25 pct blanket increase for all public sector employees, education and health included. After that, the second rise would be for the health care sector, that is directly pinpointed in the 2022 grid, and there would be another increase of 20 pct in education, which, combined with 25 pct results in an aggregate 50 pct rise," the Labor Minister said in Parliament. 

According to the cited source, 80 amendments cleared the Senate and another 100 amendments - the Chamber of Deputies. 

Separately, Finance Minister Viorel Stefan explained on Tuesday that the impact of the uniform pay law will be 8.6 pct of GDP in 2018. 

"As of January 1, 2018, we enforce a 25 pct salary increase for everybody, and as of March 1, 2018, we achieve our goal of fully ensuring the 50 pct growth in education and healthcare. The effect is a wage envelope of 75 billion lei, which accounts for 8.6 pct of GDP. This is the target we have been pursuing. I would have liked that to be closer to 8 percent, but anything between 8 and 9 percent is sustainable," said Stefan. 

The bill had been previously adopted by the Senate. The Chamber of Deputies is the decision-making body in this case.

 

 

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