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June 25, 2021

Labor Min seeks to increase minimum salary to RON 800

Also, the cabinet contemplates reducing social contributions by 5 percent as of next year.

Labor Minister Mariana Campeanu told a TV programme on Sunday night that retired people will start getting back the illegal 5 percent tax on health care, in several tranches, as of June.« The pensions up to RON 1,000 will rise by RON 82 and those over RON 1,000, will go up RON 68, starting from June,” the minister said.  Also, according to a draft Emergency Government Ordinance (OUG), the health care contributions from pensions will be returned in installments, with the health insurance fund to lose over RON 1.5 bln in contributions, according to Mediafax.Referring to those pensioners who had additional incomes and were taxed by the previous Executive, the minister said that, once teachers or doctors, for example, bring a document attesting to their having been paid hourly, and not under an individual labor contract, they will get their money back. The minister also said that next year might see a return of allowances to mothers equal to 85 percent of their pay. “We have the lowest birthrate in Europe and future measures will hopefully encourage a higher birthrate”. Referring to public employee salary increases in December, Campeanu emphasized that, while the pay will be 7.4 percent higher in December, employees will nonetheless receive it in January. « This increase is sure to impact next year’s budget, “ the minister said.The desired increase to RON 800 of the minimum salary in the near future is another major target of the new minister, along with a 5 pc reduction of the social contributions paid by employers.  « These measures, along with salaries up to RON 800 being charged a tax of 8 percent tax will lead to the creation of more jobs and hopefully stimulate employers to declare the real income of their employees,” the labor minister said.  Prime Minister Victor Ponta said again Monday that budgetary salaries will be increased even if the European economic situation is getting worse and worse, stating that this is already provided in the budget deficit.Ponta said that the situation in which Romania would have problems on the revenue budget, the state will have to make other savings to increase salaries budget.

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