French investors in RO say minimum wage increase can affect the whole economy

The changes to the minimum wage in the form announced by the government can affect the whole economy as it will lead to an increase in labor costs which will also be reflected in price increases, according to the French Chamber of Commerce in Romania – CCIFER. The changes, which were announced in a very short time frame, also affect predictability and fiscal stability and the capacity of local companies, especially small and medium ones, to adjust their budgets accordingly. “We are talking here not only about minimum wage increases but about the whole pay grid, which needs to be adjusted to the new conditions, without being correlated to productivity,” according to CCIFER representatives. The organization points out that Romania is at the bottom of the EU list on productivity as the wage adjusted productivity has declined in all sectors due to disproportionate salary increases. CCIFER also believes that setting a differentiated minimum wage based on seniority will lead to excessive bureaucracy and will affect the chances of senior workers to find jobs according to their training and competencies. German investors in Romania warn that new minimum wage hike will force them to change plans Minimum wage to increase in two stages in Romania (Photo: Pixabay) editor@romania-insider.com