[Romania] European directive on minimum wages would have significant impact

If passed at its final vote in the European Parliament, the European Directive on the minimum statutory wage would increase gross wages in Romania quite substantially, Romania Insider reports.

The minimum level of wages in the country, after the directive passing, would be hiked by RON 1,000 (EUR 200) to RON 3,500 (EUR 700), according to G4media as part of a commentary on an interview given by MEP and former EU Commissioner Corina Cretu (Progressive Alliance of Socialists and Democrats).

Such a leap in pay would have a far from negligible impact and investors have already warned of the hugely negative consequences in terms of jobs lost.

However, higher wages can also be achieved by workforce mobility and investors’ complaints about “the lack of [cheap] workforce” highlight this fact.

Under the Directive, the minimum statutory wage will be calculated on a country-by-country basis as 60 per cent of the economy-wide average wage. The benchmark mirrors the poverty line; 60 per cent of the average per capita income.

The European Minimum Wage Directive is close to the final vote in the European Parliament. Some EU member states still oppose the Directive - including Sweden and Denmark - saying that it is not their governments that set the minimum wage, it is set through negotiations on collective bargaining agreements.

The Directive has already been voted on in the Labor Committee of the European Parliament and the vote in the plenary sitting could take place early next year, MEP Cretu told G4Media.

Source: Romania Insider

(Link via original reporting)

If passed at its final vote in the European Parliament, the European Directive on the minimum statutory wage would increase gross wages in Romania quite substantially, Romania Insider reports.

The minimum level of wages in the country, after the directive passing, would be hiked by RON 1,000 (EUR 200) to RON 3,500 (EUR 700), according to G4media as part of a commentary on an interview given by MEP and former EU Commissioner Corina Cretu (Progressive Alliance of Socialists and Democrats).

Such a leap in pay would have a far from negligible impact and investors have already warned of the hugely negative consequences in terms of jobs lost.

However, higher wages can also be achieved by workforce mobility and investors’ complaints about “the lack of [cheap] workforce” highlight this fact.

Under the Directive, the minimum statutory wage will be calculated on a country-by-country basis as 60 per cent of the economy-wide average wage. The benchmark mirrors the poverty line; 60 per cent of the average per capita income.

The European Minimum Wage Directive is close to the final vote in the European Parliament. Some EU member states still oppose the Directive - including Sweden and Denmark - saying that it is not their governments that set the minimum wage, it is set through negotiations on collective bargaining agreements.

The Directive has already been voted on in the Labor Committee of the European Parliament and the vote in the plenary sitting could take place early next year, MEP Cretu told G4Media.

Source: Romania Insider

(Link via original reporting)