Draft law provides increases worth 13.8pct in pensions, 5pct in salaries as of January

Pensions will increase 13.8% as of January 1, 2024, and base salaries of staff paid from public funds will increase 5% from the same date, except for education staff who will benefit from a 20% increase in two tranches, according to the draft law approving the ceilings of some indicators specified in the fiscal-budget framework for 2024, published on Wednesday.

However, overtime work performed beyond normal working hours by budget sector staff, as well as work performed on weekly rest days, public holidays and other days when, according to the regulations in force, no work is performed during the normal work shift, will be compensated only with appropriate time off, with certain exceptions provided by law.

On the other hand, next year only civil servants with an income below a ceiling of 8,000 lei net/month will receive holiday vouchers and food allowance. The value of the holiday voucher increases from 1,450 lei/year to 1,600 lei/year so the 10% health insurance contribution - CASS on holiday vouchers should not affect their net value.

The hard working conditions bonus (antenna radiation bonus) has been set at 15% of the base salary but not more than 1,500 lei gross/month for all areas of activity in the budget sector.

The draft law also provides the cancellation of vacancies, the reduction of the share of public management positions in the total number of positions at the level of main credit release officer from 12% to 8% and the limitation of management positions to a maximum of 10% for other categories of staff paid from the state budget.

In addition, a minimum of 10 executive posts is needed to set up a service, a minimum of 20 executive posts is needed for a directorate and a minimum of 35 executive posts is needed to set up a directorate-general.

The public office of secretary of state, state counsellor/under-secretary of state/vice-president and related public offices should be reduced by at least 25%.

The allowance for freelance activity, the amount of the allowances granted to members of the Romanian Academy, the rights for the recognition of the merits of personnel participating in military actions, missions and operations on or outside the territory of the Romanian State are maintained at the level granted/due for December 2023, as are the life annuities provided in Law on Physical Education and Sport no. 69/2000.

For next year, a limit of 5% of the GDP has been set for the budget deficit and a ceiling of 8.5% of the GDP has been set for personnel expenses, while for 2025 a limit of -4.7% of the GDP has been set for the budget balance and a ceiling of 8% of the GDP has been set for personnel expenses.