Labour minister: 20,000 people to be hit by ban on adding a salary to pension
Furthermore, each public sector institution in a year’s time will have a limit set for expenditure, the minister said, adding this will be the main budget planning measure.
‘When we speak of a target set for cutting the salary spending it doesn’t necessarily mean massive layoffs and the law on a single pay in the public sector will help a lot, by the discipline it will bring.
The government, at the beginning of its tenure, blocked 145,000 positions, which means no staff will be employed. This also means a 10 percent cut in expenditure.
We have approved an emergency ordinance agreed upon with the trade unions and the employers and we have set maximum ceilings for certain salary allowances.
These two measures are part of a wider package thanks to which the IMF had confidence to give us the loan’, Sarbu explained.
The labour minister stressed that such allowances, currently accounting for 51 percent of the total salary fund, should account to just 30 percent in three years.