Reform of public sector pay: 12-grade scale and compensation for over 500,000 employees

The public sector pay system is preparing for a major overhaul with the introduction of a unified pay scale featuring 12 salary grades, which will replace the current fragmented system from 1 January 2027. The reform introduces a simplified structure in which salaries will be calculated on the basis of coefficients ranging from 1 to 8, applied to a reference value set at 4,100 RON for the first year.

Protection for lower-paid employees

A crucial aspect of the reform concerns the protection of approximately 528,000 public sector workers who could receive lower salaries under the new grading. These employees will benefit from a "transitional pay difference" to compensate for any reduction in income, ensuring that no one is left financially worse off by the change. This protective measure applies only to existing employees who remain in the same post and under the same working conditions.

Elimination of 87 allowances from the current system

The reform brings a drastic simplification through the elimination of 87 allowances from the total of 151 currently in existence across the public sector. This measure aims to create a more transparent and equitable system, replacing the practice of discretionary allowance awards with a more substantial base salary. Remaining allowances will be capped at a maximum of 20% of basic salaries at the level of each institution.

Introduction of performance bonuses

The new system introduces a performance-based reward mechanism through the award of quarterly, half-yearly, or annual bonuses. These bonuses may be awarded to a maximum of 30% of non-managerial posts and 30% of managerial posts, with the total value capped at 4% of the institution's payroll expenditure. In the first year of implementation, the measure will apply only to teaching staff and employees of ANAF (the National Agency for Fiscal Administration).

Transparency within the system will be improved by requiring public institutions to publish, twice a year, a complete list of posts and salary income, including all financial components. Failure to comply with this obligation may be sanctioned with substantial fines of between 20,000 and 30,000 RON.

Implementation of the reform follows a strict timetable, linked to the fulfilment of a milestone under the National Recovery and Resilience Plan (PNRR). Adoption of the legislation must be completed by 1 July 2026, with a financing tranche of over 700 million euros from European funds contingent on that deadline. The reform will come into full effect on 1 January 2027, with no phased rollout.