Minimum wage increase in Romania would create problems for companies

Increasing the minimum wage starting January 1, next year, would create problems for businesses, according to three-quarters of the firms that took part in a survey conducted by The National Council of Private Small and Medium Enterprises in Romania - CNIMMPR. Some 62% of the respondents also said that an increase in the minimum wage would lead to the layoff of individual employees, reports local Agerpres. Only 16% of the companies said that there wouldn’t be any effects on the current employees. Most firms have demanded more investments, less bureaucracy, and a drop in taxation to ensure the minimum wage increase in 2016. Romania’s minimum wage will not increase from RON 1,050 to RON 1,200, starting January 1, as the previous Government had announced. A study is first needed which could show the impact of this growth on Romania’s competitiveness and the business environment, said Finance Minister Anca Dragu on Monday. editor@romania-insider.com