A new increase in the minimum wages

The minimum salary in Romania will be increased as of December 1

Roxana Vasile, 05.11.2018, 15:06

The announcement regarding the upcoming pay rises in Romania was made by labor minister, Lia Olguta Vasilescu, who specified that salaries will be differentiated according to education level.

Lia Olguta Vasilescu: “At the next government meeting we’ll have an emergency decree to modify the Labor Code. At present, the Labor Code mentions minimum wages but says nothing about differentiated minimum wages. After the modification of the Labor Code, we’ll need a government decision. As of December 1, the minimum wages are going to be raised at 2,080 lei, the equivalent of 425 Euros, while the minimum pay for higher education graduates will be 2,350 lei, around 510 Euros. Also, those with 15-year job seniority will have a similar minimum pay of 2,350 lei.”

As to job seniority, the labor minister showed that it refers to seniority in general, irrespective of the work place or of the existence of a period of unemployment or maternal leave during these 15 years. Increase in and differentiation of the minimum pay represent a follow up to a number of other measures taken under the Salary Law in the public sector, which is part of the governing program of the ruling coalition made up of the Social Democratic Party and the Alliance of Liberals and Democrats. This law took effect on July 1, 2017, and its first effects could be seen starting on January 1, 2018.

The law provides for pay rises, in stages, for the teaching staff, for the healthcare staff, for the employees of the judiciary as well as for other categories of state employees. The purpose of the law was to balance the state pay system, as there were major discrepancies in the salaries paid for the same positions and the same attributions. Moreover, according to the authorities, a pay rise was needed especially in the healthcare system, against the backdrop of acute lack of labor force. So far the salaries of the medical staff, who previously chose to leave the country in search of a better-paid job, have increased significantly.

The authorities are paying equal attention to the modification of the current law on the public pension system, which is going to benefit more than 5 million pensioners. Scheduled to come into force next year, as of January 1, and to be applied in stages, until 2021, the draft law adopted by the Government and forwarded to Parliament for adoption stipulates not only pension increases but also the elimination of inequities. It is envisaged that the payment of pensions should be made according to the contribution of each person, and pensioners with the same job seniority, but who retired at different times, should receive the same pension. This week the draft law on the public pension system is expected to be debated in the Senate’s labor committee.