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Minimum Salary Boost Threatens Romania’s Econ Stability – Employers

The rapid growth of the Romanian minimum salary from the current 600 lei (EUR1=RON4.1560) to RON1,600 or RON1,700 over the next 2 or 3 years and the approval of unrealistic salary grids over the next 3 to 5 years threaten economic stability, an employers confederation said.
Minimum Salary Boost Threatens Romania's Econ Stability - Employers
11 mai 2009, 14:35, English

"The confederation said the approval of salary grids based on unrealistic budget revenues over the next 3 or 5 years, the rapid growth of the national minimum salary from the current level of RON600 at RON1,600 or RON1,700 over the next 2 or 3 years threaten Romania’s economic stability and are an extremely negative signal for the business environment," the National Confederation of Romanian Employers CNPR said in a statement.

CNPR asks for publishing and holding public talks on the three salary grid variants as well as for making financial analysis with their influences upon staff expenses covered by the state budget.

Also, CNPR representatives said they will further ask for the approval of a salary law on the budget personnel and for the removal of "major discrepancies deliberately created in the last ten years between the different salary levels of different social categories."

The 4.9 million employees in Romania could not financially support "the unrealistic social commitments," CNPR also said, and the country could not overcome the financial crisis through higher social assistance, but by making investments and creating job opportunities.

Romania’s minimum salary, which is currently at RON600, could reach RON1,500 or RON1,600 after the application of a new salary grid for the public sector, labor minister Marian Sarbu said late April.

Sarbu also told MEDIAFAX that the new salary grid in the public sector will be applied as of January 1, 2013, adding no other date has been put forth by the government for its enforcement. He also said the single unitary wage law would be completed this year and would be applied as of January 1, 2010.