Romania’s four governing parties have failed to reach a political and social agreement on the country’s new public sector pay law, President Nicușor Dan announced on Wednesday.

The President said the Presidential Administration had been mediating discussions between the Social Democratic Party (PSD), National Liberal Party (PNL), Save Romania Union (USR) and Democratic Alliance of Hungarians in Romania (UDMR) since May, but the negotiations ultimately failed to produce a consensus.

The reform is considered essential for Romania’s entire public sector. According to Nicușor Dan, however, the issue should not have been postponed for years, starting in 2022. The delays have now left the parties under significant time pressure while attempting to address a reform with major social and economic implications.

Despite the lack of a final political agreement, the President acknowledged the willingness of the parties and ministerial teams to engage in dialogue and highlighted the intensive work carried out over the past several months.

One of the key decisions reached by the four parties was not to submit separate versions of the pay law to Parliament. As part of their political agreement, the parties have jointly assumed the loss of the €770 million associated with this PNRR milestone.

More importantly, the parties have committed to adopting the new pay law by the end of 2026 and to respecting the overall wage bill agreed with the European Commission.

The available funding, however, will not be sufficient to meet all demands from trade unions. The discussions held in recent months have clarified many of the technical aspects of the legislation, which the President said is now almost technically complete.

The remaining challenge is therefore largely political: deciding how the available wage budget will be distributed among the different professional categories within Romania’s public sector.

This decision will ultimately determine the level of income for each category of public employees.

The negotiations over public sector pay are therefore entering a crucial phase. While the technical work on the legislation is close to completion, the political parties still need to agree on how the available funds will be allocated.

Press statement by the President of Romania, Nicușor Dan
August 26, 2026

“Starting in May, the Presidential Administration mediated discussions between PSD, PNL, USR and UDMR on the public sector pay law.

Unfortunately, despite intense negotiations over the past several months, the four parties have not reached a political and social consensus on the law.

This essential reform for the entire public sector should not have been postponed year after year, starting in 2022. We have thus reached a situation in which such a complicated issue, with major social and economic implications, is being debated under enormous time pressure.

I must nevertheless acknowledge the willingness of the parties and ministerial teams to engage in dialogue, as well as the intensive work they have carried out.

It should also be noted that the parties have honored their commitment not to separately submit a draft law to Parliament, jointly assuming, in accordance with the political agreement, the loss of the €770 million associated with this PNRR milestone.

Most importantly, the parties have committed to adopting the law by the end of this year and to respecting, through the future pay law, the wage bill agreed with the European Commission.

This wage bill will not be able to meet all trade union demands. The work carried out over these months and the discussions with trade unions have clarified many technical aspects, with the law now almost technically finalized.

The political decision of the parties will determine how the wage bill will be distributed among the various professional categories and, consequently, the level of income for each professional category within the public sector.”

Source: Presidential Administration of Romania