The Romanian Business People’s Organization – AOAR proposes the Government to adopt a minimum hourly wage instead of the minimum monthly wage, which would better suit the current economic conditions and the variations on the local and international markets.

AOAR’s proposal comes after finance minister Eugen Teodorovici said recently that he would be for eliminating the minimum wage in the private sector. However, his government colleague, labor minister Lia Olguta Vasilescu, said such a measure would be out of the question, as it’s not included in the Social Democratic Party’s governing program.

AOAR believes that a minimum hourly wage would allow higher workforce flexibility for local companies and that it can boost job creation in regions of the country where unemployment is still high due to lack of infrastructure. However, unions don’t share this opinion and are against it.

The minimum gross wage in Romania is currently RON 1,900 per month, corresponding to a minimum net wage of just under RON 1,200 (EUR 258).

editor@romania-insider.com