Despite Romania's excessive deficit correction measures being implemented from 2021, government spokesman Mihai Constantin said on Thursday that certain categories of civil servants would receive a 10% pay increase this year compared to December 2023.
The salary increases will be implemented in two stages, in June 2024 and September 2024, to coincide with local, EU and presidential elections. Certain civil servants, including those in the departments of culture, foreign affairs, government, parliament and local administration, will benefit.
The decision, which comes amid recent protests by civil servants in various government agencies, is expected to have an impact of 1.2 billion lei (around 241 million euros) on the 2024 budget, Constantin said.
However, he could not reveal how the salary hike would be funded, telling reporters: “The finance minister should know.”
Romania has been under a deficit correction procedure since 2021, and the European Commission has asked the government to reduce the budget deficit to at least 2.9% of GDP by 2024.
However, external shocks and rising government spending have delayed fiscal consolidation, leading the European Commission to revise its forecast for Romania's budget deficit to 6.9% of GDP in 2024 and 7% of GDP in 2025.
Despite the government approving a 10 percent wage hike, trade unions representing civil servants and government employees in the Senate and House of Representatives expressed dissatisfaction with the wage hike.
Romanian Prime Minister Marcel Ciolak was alarmed by worker discontent and asked ministries to cut staff numbers to free up funds to cover the salaries of deserving people.
“I have seen growing discontent within the government as well. Employees are protesting what they say is too much work for a monthly salary of around 1,000 euros. I am confident that the government and parliament can find a flexible solution to restructure personnel,” Ciolak added.
(Katarina Mihai | Euractiv.ro)
