Romania adopts new public‑sector salary law to cut 87 allowances

Romania’s Ministry of Labour published the first draft of a unified public‑sector salary law on 25 May 2026. The law, slated to take effect on 1 January 2027, introduces a single grading system with 12 salary grades based on a reference salary of 4 100 lei (rising to 4 793 lei by 2031). The maximum gross salary will be 32 800 lei, reducing the salary‑ratio gap from 1:12 to 1:8.

The reform eliminates 87 of the 151 existing allowances and caps the remaining ones at 20 % of the base salary. According to interim Labour Minister Dragoș Pîslaru, “we will eliminate 87 of the 151 allowances”. About 44 % of public employees will keep their current net income, while 56 % are projected to receive salary increases, with notable gains for doctors, teachers and researchers. The law also creates performance bonuses for up to 30 % of staff, limited to 10‑20 % of the base salary.

A political agreement between PSD, PNL, USR and UDMR, mediated by the Presidential Administration, ties the reform to Romania’s PNRR commitments and sets a parliamentary deadline of 1 July 2026. Trade unions, such as the National Police and Contractual Staff Union, warn that the new reference‑salary system could make public workers vulnerable to political manipulation, with Vasile Zelca stating the law “turns budget employees into the politicians’ pawns”.