Romanian prime minister Marcel Ciolacu announced that the 2024 budget would include a 5% reduction in labor taxation on low to medium incomes, aiming to ease the financial burden on employers and support increased wages, News.ro reported. 

Speaking in Argeş County after discussions with union leaders from the Dacia car factory, Ciolacu stated, "This measure will significantly alleviate employers' efforts to raise incomes and reduce tensions between unions and employers."

While Ciolacu confirmed that consultations with labor minister Simona Bucura-Oprescu and union representatives influenced this policy direction, he did not specify whether the tax reduction would be limited to the automotive industry or extended across sectors. 

The initiative is expected to be formalized as part of next year's budget.

iulian@romania-insider.com

(Photo source: Inquam Photos/Octav Ganea)