Over nine in ten (93%) small enterprises that participated in a survey said the increase in the minimum wage, the social contribution transfer from employers to employees and the increased contributions for part-time employees have generated negative effects on their businesses.

Six in ten entrepreneurs said they faced difficulties in transferring the social contributions on their employees and 68.7% said they had part-time employees whose net salaries were lower than the minimum social contributions they had to pay (RON 665), according to a survey by the national council for SMEs - CNIPMMR.

Close to 80% of the respondents also said the minimum wage increase starting January 1, 2018, has caused them difficulties and half of them anticipate the measure will lead to layoffs. Most respondents (72%) said however that they increased their employees’ gross salaries to fully compensate the social contribution transfer, 13.3% decided to pay monthly bonuses while 12.9% raised the gross salaries but only partly compensated for the social contribution transfer.

A total of 1,752 respondents took part in this survey, which was carried out between February 7 and February 16.

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