The Government is to adopt on Friday the draft decision on the gross minimum wage. Although it has promised to increase the minimum wage for employees with seniority of 15 years and for those with higher education to the level of RON 2,350, the Dancila cabinet has decided to increase the minimum wage only for the latter category, ziare.com reports. The employees with seniority of over 15 years will get a gross minimum wage of RON 2,080.
At the beginning of the Government sitting on Friday, Prime Minister Viorica Dancila said “the minimum gross wage will be increased to RON 2.080 and to RON 2,350 for employees with higher education, having seniority of at least one year. The decision will come into force as of January 1, 2019. (…) So, we fulfill our commitment provided by the governing programme.”
The draft decision reads that for state employees who will get RON 2,080, the increase will be of 9.47% against December 2018, whereas for those to receive RON 2,350 the increase is of 23.6%.
The hourly payment in 2019 will be of RON 12.43 for a complete working schedule of 167.333 hours.
The Government argues the increase of minimum wage will have positive effects on economic growth by stimulating jobs, increasing the employees’ purchasing power and reducing the work on the black market.
The shock on the labour market (on the number of employees) is entirely absorbed and the competitiveness in the competition sector is not affected, the draft bill reads.
However, the businessmen and foreign investors have repeatedly warned that the increase of minimum wage will affect the economy.