Labour Minister: Wages to stagnate not fall in the public sector in 2010

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The single pay law will be a priority in 2010, says the Minister of Family and Social Protection (MMMFPS) Mihai Seitan.

According to the dignitary, no wage cut will be seen next year because of the implementation of the single pay law, with only such salaries in the public sector now found below 705 RON to grow up to this value. Another priority announced by the MMFPS was the approval and implementation of the single pension law.

‘The current pension system is a safe one. No pension will be cut. The budget stipulates the amounts we need to cover the pensions this year. The new pension law will have provisions to cover all the pension systems existing now on the market. Moreover, a new pension scheme will be introduced, depending on the value of the contributions and years of service.

The pension law was discussed with the IMF (International Monetary Fund) representatives, currently waiting to be approved by the Parliament. We hope to have it ready by end-March, with 6 month of implementation to follow’, Mihai Seitan said. According to the Labour Minister, a cut in the personnel in the public sector will indeed be seen in 2010.

‘Expenditures with the personnel will have to be reduced, but not in all the sectors. Those people to be sent home will have to be caught in professional training systems instead, in order to have them reintegrated. There will probably be seen a cut by 70,000-80,000 jobs in the public sector. The unemployment rate will stand at 7.3 percent in end-2010, following to probably grow during the year’, the Labour Minister said.

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