Sandu: I Don’t Think Salaries Can Be Increased from September 1

The salary increases provided for under the new remuneration law will not take effect on September 1. President Maia Sandu made the statement explaining that the government needs to review the draft law in light of the impact of the new tax policy and the budgetary resources available, reports Realitatea.md. Speaking on Jurnal TV’s Cabinetul din Umbră programme, the head of state said that, once the tax policy is approved, the government will have to assess the additional revenue it is expected to generate and weigh it against the costs of implementing the new remuneration system. “I don’t think this can be done by September 1, because it’s already August. The situation around the tax policy has now become clearer, and we will see what resources the government is projecting and to what extent they correspond to the cost of implementing the new remuneration law. Expenditure and revenue have to be balanced,” Maia Sandu said. According to the President, the government may amend the bill to bring it in line with the available budgetary resources. At the same time, Maia Sandu expressed hope that the pay rise would be implemented as soon as possible, even if it does not take effect at the beginning of September. “I don’t think the pay rise will take effect on September 1, but I still hope it will happen sooner rather than later,” the head of state said. The President said she could not give an exact date, stressing that drafting and amending the bill is the government’s responsibility. She expressed confidence that the government would make the necessary changes in the coming weeks and that, once Parliament returns from its summer recess, the bill on the new remuneration system would be placed on the legislative agenda. Prime Minister Vasile Tofan previously announced that the draft law on public-sector pay would be put out for public consultation in September. He said the reform is aimed at making the salary-setting process more transparent and narrowing pay gaps between employees in similar positions. The final version of the bill will be prepared taking into account the impact of the tax policy and the budgetary resources available.