Romania’s Govt. publishes formula for EU-compliant minimum statutory wage

Romania’s Labour Ministry published on November 13 the draft bill for updating the minimum statutory wage on an annual basis, by indexation with a coefficient that includes inflation and labour productivity gain, Cursdeguvernare.ro reported.

In case the result is lower than 52% of the projected average wage in the coming year, as projected by the state forecasting body in its autumn forecast, tripartite negotiations, including the employees and employers, take place.

The trade unions, however, objected to the formula proposed by the government since it could result in the freezing of the minimum statutory wage.

Specifically, if both the inflation and productivity gain fail to exceed 1%, then the statutory minimum wage is kept constant from one year to another. Separately, lower productivity can have a negative effect on the indexation coefficient, even if the coefficient can not be negative.

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