RO Govt. to decide on minimum wage by end of November

Romania’s Government will decide on the minimum wage hike planned by the former Social Democratic cabinet only after a thorough analysis and consultation of the social partners, Ionel Danca, a spokesperson for the incoming cabinet of Liberal prime minister Ludovic Orban, announced on November 11, News.ro reported.

Previously, PM Orban avoided ruling out such a move ab initio, but he hinted that the minimum wage hike should be grounded on quantitative indicators rather than political reasoning.

The main parameters to be assessed for establishing the minimum wage level for next year will be those related to the economic activity: macroeconomic indicators such as the economic growth for the current year, the inflation, Danca said.

But the Government will also run a microeconomic assessment of the impact at the levels of the enterprises in the economic sectors where employees are predominantly paid the minimum wage.

“A decision will be taken after consulting the social partners, employers, unions. The Government plans to draft the government ordinance, launch it for public debate, and endorse it by the end of November, so that the companies enjoy predictability when building own business plans for next year,” Dancă announced.

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