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Government adopts minimum wage increase to 1,250 lei from May 1
The Government adopted the draft Government Decision on raising the minimum wage from 1,050 lei to1,250 lei starting with May 1, the Government's spokesperson Dan Suciu stated on Wednesday during a press conference at the Victoria Palace.
According to a statement by the Ministry of Labour, Family, Social Protection and the Elderly (MMFPSPV) sent on Tuesday, 1,131,686 employees will benefit from the minimum wage increase, out of which 1,092,364 are active in the private sector and 39,322 in the public sector.
"It is estimated that the proposed increase will have positive effects on the economic growth, by stimulating employment and reducing undeclared work, on the business environment: increasing the minimum salary to 1,250 lei will lead to an additional financial effort borne by the employer of 1,015 lei/employee, corresponding to the seven months of 2016, from a social point of view: the draft decision has an important social impact, ensuring the increase in the standard of living and reducing the gap between social categories, with the monthly net wage of an employee who has no dependents increasing from 777 to 917 lei," the press release states.
According to representatives of the Labour Ministry, the minimum wage increase aims to improve its share in the average wage, so that the ratio of these two salaries can reach 60pct, a rate found in the developed EU member states.