More money for the poorest Romanians, from 2025. From January 1 next year, no Romanian will receive an income of less than 500 euros net (“in hand”), i.e. 2,500 lei, based on a decision established at EU level.
The “European minimum wage” will take effect from July 1, 2024, announced Friday, April 26, Marcel Ciolacu, the Prime Minister of Romania.
“Yes, the mechanism starts. We cannot stay, this form is a bit empirical in which there is a negotiation with social actors, employers and unions and the Government decides by how much and how, depending on certain parameters. I think there must be something predictable and a very clear mechanism, especially since now it will be a European-level mechanism”, stated Ciolacu.
How much will the salaries for the poorest Romanians increase?
From July 1, the minimum net salary will increase to 3,700 lei gross, i.e. up to 2,217 lei net, from the current 2,079 lei net. For January 1, 2025, the target is 500 euros net monthly, i.e. 2,500 lei net.
At the beginning of 2024, the Minister of Labor from the PSD, Marius Budăi, announced that the initiative is based on the European directive 2041/2022.
It remains to be seen how this measure will be implemented, which could impact the business environment extremely hard. Important to remember, Romania is one of the countries in the EU with the lowest salaries, but with labor taxes among the highest.
PSD and PNL have not made it clear that they want to intervene to reduce taxation. In contrast, the opposition from USR and AUR supports this measure.
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