Gov’t draft ordinance concluded: What wage hikes and fiscal measures does it contain?

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The draft of the Ordinance on budgetary and fiscal measures coming into force in 2024 has been finalized by the Government. There are several novelties, such as the return of the 1,500 lei facility for daycare or kindergarten, the freezing of employment at the State, the increase of teachers’ salaries, vouchers for the Rabla program and others.
Therefore, the ordinance stipulates that the public employees will benefit from a 5% salary increase from January 1, 2024. At the same time, teachers’ salaries will increase in 2024 by 20% in two installments, respectively by 13% starting in January, the difference being granted starting in August. The education staff has though faced some surprises this morning when they saw the GEO stipulating only a 8pc increase of their salaries as of January 1, as against the 13 pc one. However, the draft has been amended soon after and included the right 13 pc increase. Increases, allowances, compensations, premiums are maintained at the current level, according to the same ordinance. At the same time, A number of allowances are increased by 13.8%, such as for invalids, veterans, war widows.
However, the ordinance does not contain only good things. Additional work of state employees performed over the normal duration of working time will be compensated only with time off, so no extra money. Also, no vouchers will be awarded in 2024, with the exception of nursery vouchers. By way of exception, awards can be given to athletes and technical teams who have achieved outstanding performance at official international and national sporting events, to pupils, students, researchers and teachers who have obtained distinctions at international Olympiads and international and national competitions in educational disciplines and for the teachers who trained them, with the budget allocation.
Moreover, hiring in the state institutions remains frozen. Also, the occupation of vacant or temporarily vacant positions by competition or examination is suspended, with the exception of single positions. And it is forbidden, in 2024, to purchase, lease or rent cars, furniture and office equipment, by public authorities and institutions, regardless of the way of financing and subordination.
Other fiscal measures
In the year 2024, the amount of the eco-ticket granted through the Program regarding the reduction of greenhouse gas emissions in transport, by promoting non-polluting and energy-efficient road transport vehicles, 2020 – 2024 is in the maximum amount of 10,000 lei.
The minimum turnover tax and the additional tax for legal entities carrying out activities in the oil and natural gas sectors are also changed.
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