The minimum wage in Romania will go through a new increase, according to an announcement made by Marius Budăi. The former labor minister offered more explanations and said the law would be finalized by December 2024.
Marius Budai declared on Saturday, April 27, that the minimum wage in Romania will go through a new increase. However, the procedure must be carried out in several stages, according to the explanations provided by the former Minister of Labor.
The minimum wage in Romania will go through a new increase
The former minister says he has information from the Ministry of Labor according to which “another increase in the minimum wage” is coming. Budai says that these procedures must be closely discussed in the Tripartite National Council with the social partners.
Thus, the best solution can be found, he says. Marius Budai also emphasizes that both the measures aimed at the median salary and those aimed at the minimum average salary must be respected.
“I have information from the Ministry of Labor, from my colleagues, that the implementation of the directive will be completed in Romania; the law will be finalized in Romania by December 2024. There will be another increase in the minimum wage. There are stages that we have to go through. Attention, we must discuss closely in the Tripartite National Council with the social partners, I mean here the employees and employers, to find that solution and those principles from the directive: the median salary or the average minimum salary – let both be respected and aim for half the salary gross average per country”, said Marius Budai at Realitatea PLUS.
The former minister says that these measures must be implemented
The former minister also said that these measures must be implemented in Romania. Instead, the authorities must be very careful. Otherwise, they will end up in a situation where “the best is the enemy of the good”, says Budai.
More precisely, the minimum wage must not be increased “without a backstop”, so as to upset the business environment.
He also explained that sound tax reform is not just about tax increases. The former minister is of the opinion that such a measure must also aim at a rearrangement of taxes in Romania.
“There are measures that we must implement. I have a signal here: we must not end up in the situation where the best is the enemy of the good, that is, to increase a minimum wage without a support behind it, so as to disrupt the business environment, but we must also take care of the workers.
I know there are thoughts so that for those on low incomes let’s talk about a certain tax – let’s see if we can talk about the progressive tax.
I have no measure now, I am not the one working on the reform. What I want to say is that we have these thoughts, at least within the PSD, that for those with low incomes, let’s see how we do with taxation and, above all, let’s all realize that a tax reform does not necessarily mean coming with tax increases . This is not sound tax reform. We have to think about a rearrangement of taxes”, Budai also said.
When will the European minimum wage be implemented in Romania?
Previously, Prime Minister Marcel Ciolacu spoke about the moment when the European minimum wage will be implemented in Romania. The head of the PSD said that he issued an order, and the mechanism will start from July 1.
The prime minister also said that the mechanism must be predictable and very clear, especially since it will be a European measure. According to the explanations provided by Ciolacu, every country in the European Union will comply when we have a European legislation.
