Any increase in the minimum wage should be correlated with the findings of an impact study that has to analyse the effects of such a decision on the private sector and the study would be possible in the first quarter of 2016, says Finance Minister Anca Dragu.
“We are not saying right now that there will or will not be an increase [in the minimum wage], but we are saying that we have started an analysis into the possible stages for an increase in the minimum wage in 2016 as well as the impact of the action on the private sector, because there could be an effect of diminished competitiveness of Romanian companies, which might be compelled to lay off workers, reduce production or exports. It could also lead to investors withdrawing from certain branches and that could also have a hidden effect in labour migration from the white area to the gray or black market. A minimum wage increase could also affect the newcomers on the labour market, the young people or low-qualified workers,” Dragu is quoted as saying in a statement posted on the website of the Finance Ministry. More…