Moldova Plans Major Reform of Public Sector Pay System Starting in 2027

Moldova’s public sector pay system could be reformed by reducing the number of reference values, incorporating the fixed monthly allowance of 1,300 lei into base salaries, and introducing special pay mechanisms for hard-to-fill positions and IT specialists. The proposed changes are included in a draft law submitted by the Ministry of Finance to the Government for approval, IPN reports.

According to the explanatory note, the reform aims to reduce salary inequalities and strengthen the role of base pay. Starting in 2027, the number of reference values would be cut from ten to six, ranging from 4,200 to 6,900 lei.

The draft also proposes expanding occupational groups from eight to ten by creating a separate category for IT specialists and splitting the healthcare and social assistance sectors into separate groups.

For hard-to-fill positions, a competitiveness coefficient of up to 1.3 would be introduced, allowing base salaries to be increased.

The system of salary bonuses would also be reorganised. Performance bonuses would be awarded only to employees rated “excellent” or “very good”, while the allocation for these bonuses would be reduced from 10% to 4% of the basic salary fund.

The draft also provides for a reduction in the ceiling for one-off bonuses granted on the occasion of professional holidays and public holidays, from 5% to 2% of the annual salary fund. In addition, the amount awarded to an individual employee would be capped at 10,000 lei per year.

In local public administration, certain categories of employees could receive additional allowances of up to 30% of their base salary to strengthen institutional capacity. Such payments would be permitted within a limit of 50% of the local authority’s own revenues collected in the previous year.

Most of the proposed changes are expected to take effect on January 1, 2027, while the special mechanisms for hard-to-fill positions and IT specialists would come into force in 2028, according to the cited source.

The draft law is due to be examined by the Government and, if approved, submitted to Parliament.

The reform does not provide for a uniform salary increase for all public sector employees. Its impact would vary depending on the position and professional category.

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