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Ministry of Labour: Gross minimum salary formula to consider purchasing power and labour productivity

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The formula that will be established for the country’s minimum gross salary guaranteed in payment will take into account the purchasing power, the level of the average gross salary and labour productivity, informs the Ministry of Labour and Social Solidarity (MMSS).

According to a press release, the MMSS organized, on Tuesday, consultations with the social partners from the trade unions and employers’s union, for the drafting of the normative act on the transposition into the national legislation of the European Directive on the establishment of the minimum gross salary per country guaranteed in payment.

„The formula that will be established will take into account the purchasing power, the level of the average gross salary and labour productivity. Directive no. 2041/2022 is to be transposed into the Romanian legislation this year. The legislative act of the European Union establishes that each state will have the level of the minimum income depending on the social and economic conditions and the evolution of the economic indicators,” states MMSS.

In an analysis published on Tuesday, representatives of the National Trade Union Bloc (BNS) draw attention to the fact that approximately 15% of employees with full-time employment contracts have gross salaries at the level of the minimum gross salary in the country.

„For the lowest 40% of the salaries in Romania (salaries related to full-time employment), the average gross salary was 3,362 Ron, in February 2024, just 62 RON above the minimum salary. At the opposite end of the scale, for the highest 10% of the salaries, the average gross salary was 37,375 RON in February, ten times higher than the minimum salary per the economy,” a press release of the trade union organization states.

According to the same source, the average gross salary per economy was of 7,990 RON, in February 2024. In the same period, 60% of the gross salary earnings for full-time employment contracts were below the average gross salary earnings in the country.

The National Bank of Romania (BNR) and the 29 affiliated federations organized a rally in front of the Romanian Government on Monday, requesting the reduction of taxation on labour and the urgent start of a tax reform. The protest was followed by a march to the Ministry of Economy, Entrepreneurship and Tourism (MEAT), the Ministry of Labour and Social Solidarity (MMSS) and the Ministry of Finance.

AGERPRES

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