The proposal of the head of the Government to increase the minimum gross salary by 8% would have an insignificant impact on the net income of an employee paid with the minimum wage, compared to the increase in energy prices borne by employees, the president of the National Trade Union Bloc, Dumitru Costin, told Agerpres.

“An 8% increase in the minimum wage, without that correlation in the Fiscal Code (increasing the personal deduction of employees with the minimum wage, no.), would have an absolutely insignificant impact, a symbolic gesture, which will not produce a significant impact on income net of an employee,” said Dumitru Costin.

Prime Minister Florin Cîţu mentioned, at the end of last week, that he is considering increasing the minimum gross salary by 8%, and its increase could become active from November 1 or December 1, 2021.

The NBS leader appreciated that the Government’s option of increasing the minimum wage by 8% is not a serious approach, because it does not have the basis of a calculation mechanism.

“In our opinion, the 8% increase proposal is a frivolous approach to the issue of setting the minimum wage in the economy. For 5 months the European Commission has been asking Romania to develop a transparent, predictable, balanced mechanism for setting the minimum wage. When I say mechanism we are not referring to a calculation formula, the calculation formula is part of the solution. (…)

This 8% increase is frivolous because it has no foundation. What is this 8% increase on? We find again that it is made up. The Orban government came up with a calculation formula that it proposed to the social partners and on the basis of which the minimum wage in the economy for 2020 was established. The Cîţu government comes and says that Orban’s formula was not good and comes with another calculation formula. Now, this 8% is not even on their calculation formula since December last year. The same government is now coming up with another calculation formula. So we live in a strange period in which from year to year we come up with a different format of mechanism for determining the minimum wage. (…) There should be a tripartite structure of employers-unions-Government based on experts to make evaluations, determinations, simulations, impact analyzes and subsequently propose to the Government and national social partners, at the level of political decision, at the level of The Tripartite National Council for Social Dialogue has some values, with an impact analysis and everything needed,” added Dumitru Costin.