Romanian PM Ilie Bolojan opposes minimum wage increase in 2026

Romanian prime minister Ilie Bolojan said the government is unlikely to raise the minimum gross basic salary in 2026, arguing that such a move would trigger a chain reaction of wage increases across the public sector and impose an unsustainable burden on the state budget, Ziarul Financiar reported.

Speaking at a meeting of the National Tripartite Council for Social Dialogue, Bolojan said that while he recognises the challenges faced by low-income workers amid rising living costs, the government must maintain fiscal discipline.

“Even if the Government has decided to cap public sector salaries for next year, an increase in the minimum wage will automatically lead to an increase in more public sector salaries, an increase that Romania cannot afford next year,” he said.

The prime minister explained that more than 40 legislative and budgetary mechanisms are directly linked to the minimum wage, including various allowances, bonuses, and pay scales. Any upward adjustment, he said, would lead to higher collateral expenditures throughout the public sector.

According to government data, labour productivity in 2025 rose by 5%, while wages increased by more than 9%. The government warned that further wage growth not supported by productivity could fuel inflation, disproportionately affecting low-income households.

Bolojan also pointed to regional disparities, saying that a uniform increase in the minimum wage would penalise poorer counties by threatening low-skill employment, particularly in rural areas and small towns.

Consultations between the government, employers, and trade unions will continue in November, with a final decision on the 2026 minimum wage expected by the end of next month.

(Photo source: Gov.ro)