Government slashes public-sector allowances, caps bonuses in sweeping pay reform
Romania’s government unveils sweeping public-sector pay reform, cutting 87 allowances and capping bonuses at 20% of base salaries from January 2027. Acting Labour Minister Dragoș Pîslaru announced the overhaul on Monday, framing it as a key milestone under the country’s €29.2 billion EU Recovery and Resilience Plan (PNRR).
The new law eliminates 57% of existing allowances—including niche bonuses for “dust” and “antenna” work—while limiting remaining supplements to a maximum 20% of base pay. Of 56% of public-sector employees will see salary increases, but 44% will face net losses as base wages fail to offset the cuts, according to ministry calculations. Judges, who had secured court-ordered raises above the official pay grid, will see monthly salaries drop by 16%, from 22,907 lei to 19,268 lei.
A unified 12-grade pay scale, with coefficients ranging from 1 to 8, replaces the current patchwork of 300-plus salary grids. Performance bonuses of up to 40% of base pay will be introduced for staff managing EU-funded projects, though these will be subject to strict transparency rules. The reform applies uniformly across all public institutions, with no exemptions for specific professions.
The government has opened the draft for public consultation, but trade unions have already threatened legal challenges in Brussels and warned of blocking PNRR disbursements if the law proceeds without further dialogue. The legislation is slated for parliamentary approval by year-end, with implementation set for 1 January 2027.
Government slashes public-sector allowances, caps bonuses in sweeping pay reform
