The European Directive on minimum statutory wage would push up the gross wages in Romania quite substantially: the minimum level would be hiked by RON 1,000 (EUR 200) to RON 3,500 (EUR 700), according to G4media.ro commenting on an interview given by MEP and former EU Commissioner Corina Cretu (Progressive Alliance of Socialists and Democrats).

This can not have a negligible impact, and the investors have already warned of the massive negative impact in terms of jobs lost.

On the other hand, the same effect (higher wages) is achieved by the workforce mobility and the investors’ complaints about “the lack of [chap] workforce” demonstrate this.

Under the Directive, the minimum statutory wage will be calculated on a country-by-country base as 60% of the economy-wide average wage. The benchmark coincides with the poverty line - 60% of the average per capita income.

The European minimum wage Directive is close to the final vote in the European Parliament. Some EU member states still oppose the Directive, including Sweden and Denmark; they say that it is not their governments that set the minimum wage, but that it is set through negotiations on collective bargaining agreements.

The Directive was already voted in the Labor Committee of the European Parliament, and the vote in the plenary sitting could take place early next year, MEP Cretu explained for G4Media.

In short, if applied, the minimum gross wage would increase in Romania.

In the field of European funds, Cretu warned those who will take over the relevant ministry that the new Operational Programs must be concluded and approved by the European Commission and the Resilience Plan PNRR must be kicked off urgently - otherwise, Romania will lose huge amounts of money. 

iulian@romania-insider.com

(Photo source: Dreasmtime.com)