The adjustment of expenses related to salaries in the public sector became visible in 2025, when their share in the gross domestic product dropped from 9.4% in 2024 to 8.8%. According to an analysis conducted by Profit, the reduction was mainly achieved through salary freezes and hiring restrictions decided by the government led by Marcel Ciolacu since December 2024, as well as by cutting some bonuses and imposing stricter limits on hiring, measures adopted by the government of Ilie Bolojan in mid-2025.
In nominal terms, salary expenses reached approximately 167.7 billion lei in 2025, compared to 164.6 billion lei in 2024, with the increase being explained by the evolution of the GDP, not by significant salary raises.
The upcoming governments aim to reduce salary expenses to around 8.3% of the GDP, a level close to that of the years 2022–2023.
Medium-Term Target: Reduction to 8.3% of GDP
The seven-year fiscal plan agreed upon by Romania with the European Commission indicates the maintenance of pressure on personnel expenses in the coming years. For 2026, the salary expenditure should decrease to 8.7% of the GDP, and the government has already decided to freeze salaries, keeping them at the November 2024 level.
According to the indicative trajectory in the fiscal plan, the following years are expected to be marked by stagnations or very limited salary increases, in order to continue the gradual decrease in their share of the GDP. An additional contribution to this adjustment could come from reducing the number of employees in the public sector, although this process is considered challenging, given that the main employers are Education, Health, Police, and the Army.
Greater Pressures on Pensions and Investments, Not Just on Salaries
Although budgetary salaries have been at the forefront of public debate in the past year, the most significant adjustments are forecasted in the social assistance area, especially regarding pensions, but also in public investments. In the fiscal plan, the adjustment of social assistance expenses is estimated at about two percentage points of the GDP, compared to about one percentage point for budgetary salaries.
Pensions have already been frozen for 2025 and 2026, and a reduction in public investments is anticipated upon the completion of the National Recovery and Resilience Plan (PNRR).
High Deficit and Increasing Costs with Interests
Romania has already deviated from the initial trajectory outlined in the fiscal plan. In 2024, the budget deficit was 9.3% of the GDP (ESA standard), exceeding the target of 7.9%, and in 2025, the deficit is estimated at 7.65% (cash standard), compared to an initial objective of 7%.
Returning to the assumed trajectory becomes essential, especially since the public debt accumulated during years of budgetary deviations is already reflected in a high level of interest expenses, further limiting the budget space for salaries and investments.