\n
<\/p>\n
On January 1st,
\n2019, minimum wage in Romania went up, from the equivalent of some 405 Euro to
\n442 Euro per month. For the people with higher education qualifications, the
\nminimum wage got even higher, reaching approximately 500 Euro. To a western
\nEuropean, the amounts may seem insignificant. The minimum salary in France, for
\ninstance, is 1,500 Euro per month. Let’s not forget, however, what the starting
\npoint was for Romania, seen for many years as the poorest country in the EU. In
\n2016, the minimum monthly wage in this country stood at 250 Euro. In two years’
\ntime, the increase has been quite considerable. This year, workers in the
\nconstruction field, a sector that has been facing significant staff shortage in
\nthe past years, have a special status, as their minimum wage is now double as
\ncompared to last year. Here is what Darius Valcov, an advisor to the prime-minister,
\nhas said about this topic:<\/p>\n
<\/p>\n
\n
<\/p>\n
Following the agreement concluded with the employers’ associations in the
\nfield, the minimum gross salary in the construction sector went up to 3,000
\nRON, and labour taxes have been reduced as follows: the income tax is now
\n0% from 10%, the contribution to the pensions fund has also
\ndropped from 10% to 0%, the contribution to the health-care fund was reduced
\nfrom 25% to 21.25%, and the employer’s contribution is now 0.337%, down from
\n2.25%. In other words, the minimum monthly wage in the construction field is
\nnow 500 Euro, in keeping with the commitment that the Government made on
\nDecember 1st, by signing the agreement with the employers’
\nassociations in the sector.<\/p>\n
<\/p>\n
\n
<\/p>\n
Some have hailed
\nthe measures taken by the Government, because this way the employees now get
\nmore money, which translates into a labour force easier to recruit, and
\ntherefore higher productivity. Others have spoken against the measure, saying
\nthat the increase in the minimum wage will upset the business plans of most
\ncompanies operating in Romania. Small companies, which potentially pay a larger
\nnumber of minimum wages, will have to increase them too, and that will incur
\nsignificant financial losses on their part. Then, there are voices saying that
\nmost likely the increase in the cost of the labour force will be soon reflected
\nin the prices of products and services, that consumption will grow and that
\nwill trigger an increase in the volume of imports and therefore in the trade
\ndeficit. That is why specialists plead for an algorithm based on several
\neconomic parameters, such as labour productivity, the increase in the average
\nwages and the inflation rate or any other indicator that would render the
\ngrowth rate logical and predictable, not just the result of political
\ndecisions. <\/p>\n
\n
\n
\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
The minimum wage in Romania went up as of January 1<\/p>\n","protected":false},"author":109,"featured_media":80190,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[37738],"tags":[35515,39544,29693,39545],"coauthors":[],"class_list":["post-80189","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-today-in-the-news","tag-business-sector","tag-construction-sector","tag-minimum-wage","tag-prices-for-products-and-services"],"acf":[],"yoast_head":"\n