The review of ranking coefficients, the reintroduction of salary scales for local administration and the limitation of increments are the main measures considered in the public sector salary system.
According to the National Budget-Structural Plan in the medium term – 2025-2031, the revision of the ranking coefficients for the different occupational families will establish clear criteria for the ranking of different professional categories in the public sector, will reduce wage disparities and help to align the payment with the responsibilities, experience and the qualifications.
“This restructuring supports economic resilience by ensuring fair compensation of public sector employees and adequate motivation, thus reducing the risk of labor disputes or inefficiencies that could disrupt public services,” the cited document states.
The reintroduction of salary scales specific to local government employees, both public and contractual, creates greater consistency in remuneration practices between different levels of government, reduces the risk of fragmentation and wage inequality, ensuring that local government employees are treated similarly to those in the central administration, the authors of the Plan claim.
In terms of limiting increments to 20% of basic salary it helps prevent wage inflation and promotes the sustainability of public finances by ensuring that remuneration is based mainly on basic salaries rather than discretionary increments.
“Limiting raises also reduces the potential for abuse and ensures that pay is more predictable and fair for all employees. This contributes to fiscal sustainability, ensuring that public sector wage costs remain manageable and do not put pressure on government budgets. The new legal framework will be implemented, at the same time, for all professional categories, in order to avoid the appearance of new imbalances in the public sector salary system. Also, the reform of the salary system in the public sector will take into account the inclusion in the ceilings of personnel expenses taken into account when establishing the trajectory of adjusting the budget deficit for the forecast period 2025-2031”, it is also stated in the Plan published on Friday evening at the Ministry Finances.
The wage reform in the public sector is the seventh proposed in the medium-term national budgetary-structural plan – 2025-2031, in order to adjust the budget deficit.
The medium-term budgetary-structural plan aims to support the extension of the budget deficit adjustment period from four to seven years and combines the reforms provided for in the National Recovery and Resilience Plan (PNRR) with additional reforms.
According to the cited source, the budget deficit estimated for 2024, according to the ESA methodology, will be 7.9% of GDP, the level from which the trajectory of its adjustment will be projected.
The Medium-Term National Budget-Structural Plan was presented in public debate on October 16 this year in the Tripartite National Council. Also, on October 25, the consultation with the representatives of the business environment took place at the headquarters of the Ministry of Finance, as well as with the associative structures of the local public authorities in the videoconference system.
It is to be sent next week to the European Commission, which has given its agreement in principle on it, stated government sources.
Source: www.cotidianul.ro
