Romania’s Govt. publishes formula for EU-compliant minimum statutory wage
<p>Romania’s Labour Ministry published on November 13 the draft bill for updating the minimum statutory wage on an annual basis, by indexation with a coefficient that includes inflation and labour productivity gain, <a href="https://cursdeguvernare.ro/formula-actualizare-anuala-salariu-minim-pusa-dezbatere.html?mc_cid=c4f1f0c374&amp;mc_eid=cd1f92f96c" rel="noopener" target="_blank">Cursdeguvernare.ro</a> reported.&nbsp;</p>

<p>In case the result is lower than 52% of the projected average wage in the coming year, as projected by the state forecasting body in its autumn forecast, tripartite negotiations, including the employees and employers, take place.</p>

<p>The trade unions, however, objected to the formula proposed by the government since it could result in the freezing of the minimum statutory wage.&nbsp;</p>

<p>Specifically, if both the inflation and productivity gain fail to exceed 1%, then the statutory minimum wage is kept constant from one year to another. Separately, lower productivity can have a negative effect on the indexation coefficient, even if the coefficient can not be negative.</p>

<p><em>iulian@romania-insider.com</em></p>

<p><em>(Photo source: Ruletkka/Dreamstime.com)</em></p>