Moldova Ties Official Pay to Local Revenue
Local public authorities will be able to grant monthly bonuses for executive public officials of up to 50% of the base salary. A bill that provides for this was voted on, in the first reading, by the Parliament.
According to the Legislative, the proposed amendments aim to expand the category of income of the local budgets of level I local public authorities, in order to provide financial incentives to employees through monthly allowances according to the criteria and conditions provided by the legislation in force. The bill provides for amendments to the Law on the Single Salary System, by offering the possibility for level I local governments to offer monthly bonuses of up to 50% of the base salary in order to enhance the professional skills of public officials within town halls. Monthly bonuses will be granted only from the own revenues generated by the local public authority, based on an internal regulation approved by a decision of the local council.
Through this initiative, the authors of the project aim to encourage town halls to consolidate their own revenues in order to obtain the status of an administrative unit with sufficient administrative capacity. This aspect involves an exercise of reviewing all local taxes and fees, the mechanisms for collecting financial resources, and applying fiscal discipline at the community level. At the same time, it will be possible to grant level I local governments greater decision-making power in establishing their own rules regarding the increase of salary incomes of executive public officials depending on their performance and the amount of revenue collected in the local budgets.
The bill will be proposed for adoption in the second reading in the plenary session of the Parliament.
Translation by Iurie Tataru
