Government establishes predictable mechanism for wage increases

The government established in yesterday's meeting that the minimum gross basic wage in the country, guaranteed in payment, will be updated annually depending on the inflation rate and labor productivity. This measure aims to align the national wage policy with European standards and to provide a transparent and predictable mechanism for the evolution of the minimum wage.

Prime Minister Marcel Ciolacu emphasized, at the beginning of the meeting, the importance of this mechanism for updating the minimum wage, highlighting the fact that it is a European model, already implemented in other EU member states. "We are also adopting the mechanism for updating the minimum wage, depending on the inflation rate and labor productivity. It is a European calculation mechanism, assumed by the PNRR. The evolution of the minimum wage thus becomes much more predictable, this formula having been established last year, together with the social partners," declared Marcel Ciolacu.

Currently, the gross minimum wage in the economy is set at 4,050 lei per month, and the new mechanism will ensure its periodic adjustment, thus avoiding uncontrolled fluctuations that could affect the workforce and the economic environment.

Representatives of the Executive specified after the meeting that, through this measure, the aim is to create a framework favorable to sustainable economic growth, while ensuring the protection of employees' incomes and a stable economic climate for employers. The annual implementation of the minimum wage adjustment will contribute to maintaining the purchasing power of the population and reducing the impact of inflation on those with low incomes. At the same time, government officials claim that the introduction of this regular update mechanism will have positive effects on both employees and the business environment. Increased predictability will allow companies to better plan their salary costs, and employees will have the certainty that their incomes are protected against erosion caused by inflation. This measure can also contribute to reducing social disparities and improving the quality of life for low-income categories of workers.