Romanian parties agree to adopt new public‑sector salary law by 2027

The Social Democratic Party (PSD), National Liberal Party (PNL), Save Romania Union (USR) and Democratic Alliance of Hungarians in Romania (UDMR) signed a political agreement, mediated by the Presidential Administration, to adopt a new salary law for public‑sector employees before the end of the current parliamentary session. The law is a key element of Romania’s National Recovery and Resilience Plan (PNRR) and must be finalized by the 1 July 2026 deadline.

According to the agreement, the law will take effect on 1 January 2027 without phased implementation and will not be altered by special interventions. It guarantees that “no public‑sector employee will record a decrease in total income” and limits the increase in total public‑sector salary expenditures for 2027 to no more than 8 billion lei above 2026 levels, preserving Romania’s short‑, medium‑ and long‑term fiscal targets. The Ministry of Labour will publish the draft law and begin a two‑week consultation with unions and occupational families.

The reform aims to replace the fragmented salary system with a single, transparent grading grid based on objective criteria, eliminating many existing allowances while protecting current earnings. Successful implementation is linked to the continued disbursement of EU‑funded PNRR resources.