Minimum wage

Romania's gross minimum wage exceeds the Central and Eastern European average, but at the same time the country has the highest effective tax rate in the region, specifically 41.5 percent, shows a survey by Deloitte Romania.

The effective tax rate is the highest, at 41.5 percent, for a gross wage of 1,000 euro, whilst the region's average is 27 pct.

Finance Minister Eugen Teodorovici said on Sunday evening that in the coming days the government might announce the date when the minimum wage will increase.

The main argument of the business is that the decision for higher income and the increase the maximum monthly amount of earnings used to calculate social security contributions was taken without the government to comply with the opinion of the employers, reports BNT. 

The Hellenic Confederation of Commerce and Entrepreneurship (ESEE) informed the Labor Ministry on Friday that it is in favor of the gradual rise of the minimum wage to 751 euros per month in 2022, as well as the "rationalization" of social security contributions by freelance workers and the reduction of contributions for auxiliary social security by one percentage point.

The public consultation process concerning the new level of the minimum wage is expected to begin within this month and be completed by end-December, while the requisite ministerial decision for that purpose will be issued in the latter half of January 2019.

This is according to the new timetable included in a law amendment submitted by Labor Minister Effie Achtsioglou on Wednesday.

According to the new pension bill, about 65 percent of the employees will only collect the minimum pension, president of the 'Cartel Alfa' National Trade Union Confederation Bogdan Hossu told a press conference in Zalau on Wednesday.

Trade unions announced they would ask for the minimum wage at RSD 209 per working hour and for minimum monthly wage to be increased by RSD 11,000. On the other hand, employers offer a 6-7% raise.

The Labor Ministry is launching a series of inspections to stamp out undeclared labor, following the publication by the Single Social Security Entity (EFKA) of the decision specifying details of the law this week.

According to Eurostat data in 2017, labor costs per hour on average for the EU amounted to 26.8 euros. The lowest is in Bulgaria - 4.9 euro per hour, and the highest in Denmark - 42.5 euro per hour. Labor costs in Bulgaria are almost 5.5 times lower than the EU average.

The net average monthly wage was 2,487 lei this February, 0.1 percent or 3 lei higher compared to the previous month, the National Institute for Statistics (INS) said on Wednesday.

The gross nominal average wage was 4,128 lei.