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May 26, 2020
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Gov’t announces increase of the minimum gross wage for 2020

The minimum wage nationally for the year 2020 will increase in gross terms by 150 RON, and in net terms by 83 RON, stated the head of the Chancellery of the Prime Minister, Ionel Danca.

(1 euro=4.7765 RON)

“The result of the analysis conducted at the level of the Chancellery of the Prime Minister (…) revealed a basis for a mechanism to increase the minimum gross wage in agreement with the commitment made by the Government (…) namely an increase of the minimum gross wage on the basis of a mechanism that takes into account a series of objective economic indicators, so that the purchasing power of Romanian employees increase without affecting the competitiveness of the Romanian economy and without affecting macro-economic balances. The first conclusion of this analysis is that the minimum gross wage for 2020 will increase,” stated Ionel Danca, on Tuesday, in a press conference at the end of the meeting of the National Tripartite Council for Social Dialogue.

He said that the increase of the minimum wage “at the gross level is of 150 RON, and at a net level is 83 RON.”

Danca also referred to elements relating to the impact of this measure.

“An increase of the minimum gross wage nationally by 7.2 pct has an impact on consumption with an increase of 0.3 pct, and at the level of inflation a moderate impact of less than 0.1 pct. In the area of budgetary impact, the measure implies a total impact of 3 billion RON, of which on the income side 3 billion RON, and on the side of costs 1.8 billion RON,” Danca stated.

 

President Klaus Iohannis: Increase in minimum wage is not a request of trade unions, it is a necessity and it will be done

 

President Klaus Iohannis has stated on Tuesday that the minimum wage will be increased because it is a necessary measure.

“The increase in the minimum wage is not a request of trade unions, it is a necessity and it will be done. Those with the Government can tell you more about these details, they concretely manage these matters. But I have discussed, in the sense that I wanted to be informed from the source about these things,” President Iohannis said at the Cotroceni Presidential Palace.

The President has also argued that it will be difficult to fit the limit of 3 percent budget deficit next year, taking into account that money is also needed for the payment of some increases established by the previous governance, but also for public investments.

“I have also discussed (…) a little about the budget for 2020. I don’t know whether the deficit within the 3 percent margin can be achieved, probably further work will be carried out at Finance, however we should be realistic. The previous Governments have made all kind of promises, certain increases have been established by law and cannot be ignored or neglected. People have their expectations and they shouldn’t be deceived. On the other hand, it’s necessary to resume a serious national public investment programme, which will definitely help the national economy. Thus, from this point of view, for now, the situation of the 2020 budget is a complicated one and we will discuss more on this matter,” Klaus Iohannis stated.

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