Lower wages and allowances, starting July 1

The Law on certain steps necessary to restore the budget balance is to be enforced starting July 1, after being published by the Official Gazette on Wednesday.

The law stipulates a 25 percent cut of the gross wages / military pay / monthly allowances, including the bonuses, allowances and other remuneration rights, as well, and other pay rights in lei or in foreign currency, established in accordance with the Framework Law No. 330/2009 on the unitary pay of public sector staff and with the Government’s Emergency Ordinance No. 1/2010.

According to the law, starting July 1, a 25 percent cut will be also applied to the wages in foreign currency and to other pay rights in foreign currency and in lei of the staff sent on permanent or temporary mission abroad, the teaching staff pay, as well as to the pay rights of the personnel from defence, public order and national security institutions.

The law also stipulates that the „amounts resulting from the wage reduction of the aforementioned personnel and those from the public authorities and institutions integrally financed from own revenues are to be integrally transferred to the state budget” and, in case from the application of the law it results a lower amount than the minimum gross wage per economy, the respective person would receive a wage of 600 lei. (1 euro = 4.36 lei).

The quantum of unemployment benefit and the pay rights for public sector staff made redundant is to be cut by 15 percent. The text of law also stipulates that pensioners will not longer benefit of free vacation vouchers. The minimum granted social pension is of 350 lei. Revolutionaries allowances are to be cut by 15 percent, as well.
No layette money will be given to the families of newly born children, and the decision to provide free books to pre-university teaching staff will be eliminated, the same as the social protection measures in the case of former MApN, Romsilva staff.

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