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Bucharest
September 30, 2022
BUSINESS

State budget to cash in RON 344 million following minimum wage increase

The state budget will cash in RON 344 million (EUR 77.2 million) following the increase in national net minimum wage, given that next year’s budget draft is based on additional money drawn from this source, according to an official document cited by Mediafax and a statement made by Cristina Pocora, spokeswoman for PNL, in a press release. The Liberal deputy claims increasingly more Romanians are beginning to see the effects of USL’s measures, as proven by prognoses on the minimum wage increase. State budget collections will result from changing wage grids to suit economic levels after the increase is applied and the corresponding taxation of employees.
As of January 2014, the transition in the national net minimum wage from RON 800 to RON 850 will influence over 800,000 employees, a third of whom work in the public sector, and another RON 50 increase will be implemented as of July 2014 for 966,405 employees, according to MMFPSPV (the Ministry of Labor, Family, Social Protection, and Elderly Persons). On Tuesday, the ministry’s decision draft regarding a two-phase increase in the national net minimum wage in 2014 was put for public debate. The explanatory memorandum mentions 804,225 employees – 238,143 of whom work in the public sector and 566,112 employees who work in the private sector – are to be benefit from the increase in the national net minimum wage from RON 800 to RON 850. Beginning July 1, 2014, the base national net minimum wage will be set at RON 900 per month for a work schedule of 160 hours on average per week, which means RON 5,357 per hour. The document will be subject to public debate on MMFPSPV’s website until November 22.

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