twitter   facebook   facebook
← Overview Database of Innovative Social Policies in Europe

Statutory prohibition of any increase in salaries until the unemployment rate decrease to less than 10 percent

Country of implementation
General short description of the innovation
The Government prohibited by a Ministerial Council Decision any increase in the salary of private sector employees while the unemployment rate exceed the level of 10%.
Target group
Total Population
Policy Field
  • wage
Type of Policy
  • publicly mandated to non-state organisation
Duration of the policy
Scope of innovation
  • Scope: temporary with structural implication
  • Number of intended beneficiaries: 2 millions private sector employees
  • Spatial coverage: national
General description of (intended) objectives and strategies
Facilitation of employment by reducing the labour cost
Nature of the innovation-short-term perspective
Type of ideal-typical strategy for the innovation
  • others (imposing authoritative measures to collective bargaining and depressing the social dialogue)
Type of innovation
  • new policy, practice or measure
New outputs
  • governance
  • regulations of the labour market
  • wages
Intended target group
Curb the increase in unemployment rates by reducing the labour cost
Working age population
  • income level (low/medium/high)
Employers-private institutional actors
employers and trade unions jurisdiction in collective bargaining
Actors involved in policy-making/implementation and/or evaluation
  • central state
  • employees (organised or individual)
  • employers (organised or individual)
Intended output
  • wages
Intended and unintended outcomes
Clarification of outcomes in terms of impacting resilience and labour market inclusion
The authoritative prohibition of any increase in salaries annihilated the jurisdiction of collective agreements and social dialogue
Share this page: