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October 1, 2020

LabMin Vasilescu proposes minimum gross wage to increase to 1,900 lei on 1 January 2018

Under a government decision unveiled by Labour Minister Lia Olguta Vasilescu for a first reading at the beginning of a government meeting on Thursday, the minimum gross wage in Romania would increase to 1,900 lei as of 1 January 2018.

“We are unveiling today for a first reading a government decision under which the minimum gross wage increases to 1,900 lei as of 1 January 2018, so that Romanians’ wages will not be affected by the return of the tax burden. This amount matches the wage figures provided for under the governing programme, which was 1,550 lei as of 1 January 2018, but at that time the return of the tax burden from employer to employee had not been factored in,” Vasilescu said at the beginning of the meeting at the Government House.

She also unveiled for a first reading a draft ordinance increasing the minimum maternity grant, also from January 1, 2018 to 1,250 lei from a current 1,233 lei.

The minister also came up with a proposal to postpone by a year, until 1 April 2019, the minimum inclusion income for technical reasons, because the information system is not ready yet.

The minister also mentioned another proposal provided for in the draft emergency ordinance regarding an increase in the minimum pension to 640 lei.

“Last, but not least, the draft ordinance provides for an increase in the minimum pension to 640 lei and of the pension point to 1,100 lei as from July 2018. These measures come in the same package that includes cuts in the percentage of contributions to the pension pillar II from 5.1 percent to 3.7 percent, without affecting the current nominal value. More precisely, the amount that is paid today to the administrators of the pillar II pensions will be at least the same next year, but the cut in the percentage is necessary after the increase by 20 percent in the minimum gross wage,” said Vasilescu.

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