Romania must implement the adequate European minimum income by 2024 and the Romanian employee will only have to gain, because his minimum income would increase significantly, according to an analysis carried out by EY Romania representatives, Agerpres informs.

According to the analysis, of the latest Eurostat data regarding the minimum monthly wage, it turns out that Romania (a little over 600 EUR) ranks among the last EU countries, ranking 20th out of 22nd, just ahead of Hungary and Bulgaria, on a scale of this indicator between 2,387 EUR in Luxembourg and 399 EUR in Bulgaria. Although it represents a pressing problem only for a part of the member countries, the theme of the minimum income is still positioned as a priority on the work agenda of the European institutions.

A very important step in this regard was the adoption by the European Parliament, in the autumn of 2022, of Directive (EU) 2041/2022 on adequate minimum wages in the European Union and from the moment of its entry into force (October 2022), the member states have two years to transpose its provisions into local legislation.

In order to carry out a correct calculation of this income, the European officials recommend member states to take, as a starting point, the value of the consumption basket (as provided by the national statistical reports) or to set this income at 60pct of the median salary or at 50pct of the average gross salary.

Separately, according to the latest statistical data available for 2022 in Romania, the authors mention the following series of relevant data: the average gross salary is 6,430 lei; the average net salary is 3,974 lei; the value of the minimum consumption basket for a decent living for a single adult is 2,708 lei per month (as provided in the Report of the Ombudsperson); the minimum gross monthly salary at the national level (from 1 January 2023): 3,000 lei (to which, depending on deductions, a net amount of approximately 1,900 lei is due).

According to the analysis, it can be noted the fact that in Romania the minimum guaranteed wage is much lower than the minimum income necessary for a decent living (as stipulated by the Directive), and the discrepancies can be highlighted as follows: determined according to the daily consumption basket for a decent living, then the income (net) minimum guaranteed in Romania should be higher by at least 800 lei net; if the minimum guaranteed income in Romania were to be calculated based on the equivalent of 50pct of the average gross earning on economy – one of the calculation alternatives proposed by the Directive – (i.e., 50pct of 6,430 lei = 3,215 lei), the gap would increase by approximately 500 lei net and therefore the minimum guaranteed income in Romania should increase by approximately 1,300 lei.

The authors believe that the minimum income currently collected, of 1,900 lei, by a Romanian is 50pct lower, 1,000 lei, on average, in absolute values, than the threshold that is supposed to ensure a decent living. The calculations are examples for a single adult. If, on the other hand, a larger family is considered, which possibly includes children and/or other dependents, then the discrepancies become even greater and we can see that the standard of living in Romania, for a good part of the population, is far from „decent.”

According to the authors, the state will have to find, with the transposition of the Directive, the most suitable calculation formula adapted to the daily reality of Romania. Apparently, in any calculation hypothesis (as shown by the simplistic calculations above), the Romanian employee will only have to gain, because his/her minimum income would increase significantly.

They argue that the impact of the Directive will be able to be measured many years from now, after a period of implementation, probably gradual, by the member states. The hopes are that this EU normative act generates greater transparency, certainty, stability and predictability on the labor market, and in times of crisis it can become an anchor for the vulnerable citizens of EU countries, implicitly also for those in Romania.

Agerpres