The national minimum wage in Romania is insufficient to ensure a decent standard of living. The country has made progress on the minimum wage, but its level is still below the minimum threshold, which is at 50% of the average net wage, according to a report recently published by the Council of Europe. In Romania, the net national minimum wage is 34.32% of the net average wage.

The recent report analyses how Romania complied with the Revised European Social Charter on labour rights. It reflects information available on October 31, 2013.

“The Committee takes note of the efforts made to improve the pay situation in the long term. It notes, however, that the net national minimum wage is 34.32% of the net average wage, which is below than the minimum threshold, and can therefore not be regarded as a decent wage within the meaning of Article 4§1 of the Charter,” according to the report.

Romania fails to comply with six articles in the Charter, of the total 19 analyzed situations. In three other cases, the Council of Europe asked the Romanian Government to submit more information, because of incomplete available data. Most of the non-conformity conclusions are on Article 4 of the Charter, on the right to a fair remuneration of labour.

“In order to ensure a decent standard of living within the meaning of Article 4§1 of the Charter, wages must be above the minimum threshold, which is set at 50% of the average net wage.”

The national gross minimum wage in Romania, in 2012, was of RON 700 (EUR 157), only 33% of the country’s gross average income, which was RON 1,547 (EUR 348), at that time, according to the report.

Romania had the lowest minimum wage in the European Union, in 2013, according to Eurostat data.

The country’s Government has made some progress in increasing the minimum wage. On January 1, 2015, the gross minimum wage went up to RON 975 (EUR 217), from RON 900. The net minimum wage thus increased to RON 724 (EUR 161), which is 41.5% of the net average wage registered in November 2014, of RON 1,743 (EUR 387).

The gross minimum wage will go up again starting July 1, to RON 1,050 (EUR 233). This will bring the net to RON 777 (EUR 173), or 44.5% of the net average income.

The full report can be read here.

Andrei Chirileasa, andrei@romania-insider.com