Romania’s President Klaus Iohannis warned the Executive that the salary law for public sector employees ran counter to the principles of equality and predictability and called for caution in approaching economic policies.
Company bureaucrats from big public sector areas like the distribution of electricity and gas, are affected by this salary law.
The head of state also said that transferring the obligation to pay social security contributions from employers to employees and reducing the tax on salaries lead to an insignificant increase in the net salaries, and the effect was annulled by the growing inflation rate.
The president made the statements during the meeting he had with the Social Democrat Prime Minister Viorica Dancila and the Labour Minister Lia Olguta Vasilescu. In turn, the latter ensured the president of the fact that the financial resources needed for the application of the salary law and the subsequent pay rises were stable.
We recall that lately, the coalition government formed by the Social Democratic Party and the Alliance of Liberals and Democrats has been the target of many protests triggered by the new salary law.
Source: Radio Romania International.