Romania takes steps to increase minimum wage by 10%
The Labour Ministry in Romania published, as a last step before promoting it for final enactment, a decision to hike the minimum statutory wage by 10% from RON 3,000 (EUR 600) to RON 3,300 (EUR 660), Digi24 reported. The move will be enforced after the enactment of the bill.
In the construction sector, the minimum wage will increase from RON 4,000 (EUR 800) to RON 4,500 (EUR 900).
Besides increasing the incomes of over 1.5 million employees (28% of the total, according to the ministry’s data) directly and of others indirectly, the move will likely boost the budget revenues (social security contributions, income tax) and will generate inflationary pressures.
The minimum statutory wage increased last time in January 2023 by 17.6% – just above the 16.4% inflation in 2022. This year, the inflation is expected at 7%-8%, after reaching 4.9% ytd in January-August.
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