Reuters International

BUCHAREST (Reuters) - A planned government overhaul of wages in the public sector will cost the budget roughly 2.3 billion lei (401 million pounds), or about 0.3 percent of gross domestic product, Labour Minister Dragos Pislaru said on Tuesday.

The overhaul seeks to rectify pay discrepancies for employees with equal rank and functions across sectors, raise salaries in the healthcare sector and introduce performance bonuses for health and education, the minister said.

Pislaru added that the draft project did not address all the issues of public sector pay but was within the limits of what the consolidated affords. The public sector in the European Union state employs roughly 1.2 million people.

The draft government bill is under public debate from Tuesday and once it is approved, it will overhaul wages from August.

(Reporting by Luiza Ilie)

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