PM: Gov’t to cover 41.5% of the gross salaries of employees who will resume activity after June 1. Furlough to go on for the sectors under restrictions

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PM Ludovic Orban has announced several measures to help the economy during the current state of alert. Orban said that furlough will continue for those sectors under restrictions, as for the employees in the fields that will resume activity after June 1 the Government will pay 41.5% of their gross salaries.

“For those sectors where restrictions will be maintained, after 1 June, we will continue to pay furlough. For all sectors that will resume work, after restrictions ease down, furlough will be replaced by an active measure to support the employees who resume work, by allotting a percentage of the employee’s gross salary of up to 41.5pct, for each employee,” the Romanian PM stated.

At the same time, the Executive intends to pay 30% of the gross salaries to companies that will be hiring for a period of three months.

“There are categories of employees for whom employment is more difficult, such as young graduates, such as people close to retirement age and who find it harder to get jobs. For these categories we will develop much more generous hiring support tools, covering a significant percentage of gross salary for a longer period of time. Of course these measures will be taken under certain conditions for instance the company will have to keep  the employees who benefited from these active measures,” the premier added.

Pensions to increase if….

PM Ludovic Orban said that pensions will increase, but only a very serious analysis, after there is the guarantee they can be paid.
The state budget envisages the necessary amounts to enable the rise of pensions, we will increase pensions, but this decision can be made only after a very serious analysis. We want to increase pensions, but at the same time we want to have the guarantee that pensions can be paid, because the road to hell is paved with good intentions. If you increase public income without financial resources and without the guarantee that you have the ability to pay either salaries or pensions, according to forecasts conducted by us and by the financial bodies, you risk doing only harm. After six months, in accordance with the law of fiscal-budgetary responsibility, we will have the half-yearly report on the evolution of the economy. We will also draw up the forecasts and consult all the forecasts made by the European Commission or other institutions (…) and we will make the decision,” Orban explained, adding that the Government’s priority though is to pay pensions and salaries.

 

EU funds

PM Orban also announced that Romania will benefit of EUR 3 to 5 billion from the European Union, as a result of the approval by the Council of the EU of regulation on the SURE programme.

“The Council of the European Union has approved a regulation on the implementation of the so-called SURE programme. This is a programme by which the European Union helps the member states, the active employment measures. Basically, we can say today that Romania has the guarantee that it will benefit from EU funds to be able to put into practice the employment measures drafted by the Romanian Government in order to help both the employers and the employees. (…) in exchange, Romania will have to provide a guarantee of up to EUR 400 billion and it will benefit, according to our calculations, of course, depending on the mechanism of distribution of the respective funds, of an amount between  EUR 3 billion and 5 billion,” Orban said in a press statement on Wednesday evening.

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