Government will not implement provisions of Wage Law

As from January 2007, the provisions of the Wage Law that envisaged 10-15 % salary increase will not be implemented, stated minister of Economy and Commerce Igor Dodon at Tuesday’s briefing on the results of 2006 and prospects of next year. As he states, the law provisions will not be implemented “to a large extent, due to the deficit of about 800 mln lei estimated for the law’s implementation”. Minister gave assurances that as of next year “the amount of the salaries will be similar to those ensured in 2006”. According to him, this year, in compliance with the provisions of the Wage Law, the wages, especially in the budgetary sector, have essentially increased. The salary increase per economy was of 29% in all, including 40% in the budgetary sector and 20% in the real sector of the economy. Igor Dodon trusts that the planned pay increases, which were due to be in effect as of January 1, will be implemented in the coming year. Requested by Info-Prim Neo to comment on the actions undertaken by the Government for next year to implement the Wage Law, the Minister mentioned that “certain amendments will be performed to the Budget Law in order to cash up additional revenues to the state budget”. Economist Veaceslav Ionita earlier told Info-Prim Neo that the state budget in this year will fail accruals of about 380 mln lei, fact that will cause the increase in the salary debts. As the expert says, in 2005, when increases in revenues of over 50% were registered in the budget, the authorities “got drunk with cold water” and being tossed by this optimistic wave, have approved the Wage Law for the budgetary sector, without taking into account the forecasts regarding the later evolution of this field. And at present, such proceeds to the budget can not be registered anymore, as a reduction in the consumption by population is attested, an index that contributes to the setting up of Moldova’s budget in the proportion of 85%. Ionita asserts that the accumulation of debts is imminent, as the Law can not be cancelled. In January -October 2006, the monthly average salary of an employee in the economy of Moldova (enterprises with 20 employees and above) was of 1636.4 lei and increased by 29% (real wage increased by 15%), compared to the similar period of the previous year. In the budgetary sphere the average salary constituted 1420.9 lei, in the real sector of economy – 1752.3 lei. The average salary of an employee in October 2006 was of 1779.7 lei, by 29% more than in October 2005. In the budgetary sphere it was of 1541.3 lei, in the real sector – 1906.7 lei.
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