Moldova’s Congress of Local Authorities (CALM) is warning that a planned reform of the public-sector salary system could leave local government employees with the lowest reference salary levels and fewer salary guarantees.
The organization has strongly criticized a draft law that is expected to enter into force on January 1, 2027.
CALM says that although the draft is presented as a reform aimed at creating greater fairness in the public-sector pay system, its current version would place local public administration employees at the bottom of the salary hierarchy.
The organization submitted its position on the finalized draft reform to the Ministry of Finance and the State Chancellery.
According to CALM, the proposal does not sufficiently take into account the growing responsibilities of local authorities, larger administrative territories, the number of people relying on public services and the increasing workload of local administrations.
“Larger territories, more residents, more work and responsibilities, the requirement to attract EU funds and around 80% of European legislation to be implemented — but the lowest reference value in the public sector and the greatest discrimination!” CALM said.
CALM warns of staff shortages
The organization says the issue is not limited to salaries. CALM argues that reducing guarantees and financial incentives could lead to specialists leaving local public administration, potentially affecting the services provided to citizens.
Among the concerns raised by CALM are the application of the lowest reference value in the public sector, including for mayors; the removal or conditioning of certain salary guarantees, including a 50% allowance for capacity building; and reductions or caps on additional payments.
CALM also objects to the lack of opportunities for local authorities to provide financial incentives from their own revenues, the use of population size as the main criterion for salaries without taking into account the complexity of responsibilities, and the lack of recognition of more than 20 years of professional experience.
The organization further argues that the reform could shift additional financial burdens onto local budgets without providing adequate funding sources.
CALM is also calling for its participation in the evaluation of public administration positions to be mandatory rather than included only “where appropriate.”
The organization says certain legislative changes could also lead to legal disputes.
CALM considers the issue particularly important in the context of Moldova’s European integration process. The organization says approximately 80% of the EU acquis is expected to be implemented at the local level, creating additional responsibilities for local administrations.
“We share the objective of fair remuneration in the public sector. But fairness must also apply to mayors’ offices, which today receive the lowest reference value, face the most restrictions and have the most unfunded responsibilities,” CALM Executive Director Viorel Furdui said.
According to Furdui, the issue is becoming even more significant in the context of the planned administrative-territorial reform, which would result in larger territories to administer, more beneficiaries of public services and increased responsibilities for local authorities.
CALM calls for changes to the draft law
CALM is asking the government to substantially revise the provisions concerning salaries for local public administration employees and to include proposals from local authorities before the law is adopted.
Among its requests, the organization wants the standards established under current legislation to remain guaranteed minimum salary levels for local administration, the monthly 50% capacity-building allowance to be maintained, and the performance bonus fund to remain at 10%.
CALM is also calling for new seniority levels to be introduced and for the reference value to be reviewed in line with projected inflation.
The organization further wants the participation of representative local government organizations in the working group responsible for evaluating positions to become mandatory rather than optional.
CALM argues that the current version of the draft is inconsistent with the principles of the European Charter of Local Self-Government and Council of Europe Recommendation 436 (2019) concerning the remuneration of local government employees.
The organization said it remains ready to discuss the proposals with the Ministry of Finance and the State Chancellery, but insists that the draft should be amended before adoption.