Romanian prime minister Ludovic Orban said the Government will increase the minimum wage, but only after "serious analysis" and based on a predictable mechanism and formula.

In the latest government meetings, the former cabinet of PM Viorica Dancila promised to increase the minimum wage as of January 2020 and a bill in this regard was launched for public consultation.

"Regarding the setting of the minimum wage, the EU partners have asked Romania since 2015  to establish a mechanism and a formula in order to ground the minimum wage based on objective indicators - such as productivity, inflation rate, that is to say, not to set it discretionary. You know how it is: the road to Hell is paved with good intentions,” PM Orban said, adding that setting the minimum wage often turns against those for whom the measure is taken, Wall-street.ro reported.

Separately, Orban assured that the wages in the public system will not be reduced, although he stressed that there are differences between the average wage in the public sector and the wages in the private sector. Average salaries in the public sector are now higher than those in private companies.

editor@romania-insider.com

(Photo source: Shutterstock)