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Labor and Social Protection Minister Raluca Turcan said Thursday in Oradea that she is considering a significant increase in the minimum wage, which should normally come into force at the beginning of next year, after the idea of raising the minimum wage was agreed by employers, trade unions and state institutions.
“The minimum wage is a zero priority for the government and a big step forward compared to the way other governments have behaved so far. Usually the minimum wage increase comes into force at the beginning of next year. From 1 January we should normally have a minimum wage increase. I am thinking of a significant increase in the minimum wage as the price increases are much higher than what has been happening in Romania in the last period”, Raluca Turcan told a press conference.
She stressed that in order to address the problems on the labor market, the minimum wage in Romania needs to be increased, as the current level is not only insufficient, but is also a factor generating migration.
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“I am probably the most pro-minimum wage increase minister in Romania. Our Romanians choose to go abroad because of the salary and because of the services they receive in other countries. We can no longer accept and bear this level of minimum wage as a society. For the first time, in a government, in an eight-month mandate, at the same table, employers, trade unions, state institutions, we have managed to agree that the minimum wage must increase, that this increase must be predictable and as soon as possible so that the economic environment can prepare its activity for the following year and also that it should not be done subjectively, under pressure from various factors, but anchored in some economic indicators so that in the coming years we can assess how the minimum wage will evolve”, said the Labour Minister.
She noted that all the employers’ confederations had come to the conclusion that the minimum wage should be increased and it had been agreed, both in talks with the Prime Minister and in talks with employers and trade unions, that by the end of October there would be a first form of negotiation on the level of the minimum wage.
According to the minister, the main problems are the wage level, the “acute and already chronic” labor shortage for the 40,000 jobs “on offer” and the 200,000 job applications, and the often poor training of potential employees.
The government’s response, said the minister, is to focus on: education focused on qualifications and skills by strengthening dual vocational education, qualifications and vocational training adapted to the needs of the labor market, and the digitalization and flexibilization of labor relations.
Raluca Turcan also underlined the ministry’s two current priorities – vaccination and supporting vulnerable people – beyond which the engines of the economy are sustained through investment, jobs and growth.
“These priorities are reflected in our figures, which show that we have increased investment in Romania to 23 billion, 31% more than last year, that we have 120,000 jobs and record economic growth. These are the results of the Government achieved together with the Romanians”, said the Labour Minister.
Minister Raluca Turcan participated on Thursday in an international conference to launch a cross-border project organized by AJOFM Bihor and visited the job fair organized by the same institution, where employers displayed an offer of over 1,000 jobs. The Minister also participated in discussions with representatives of the private sector, employers and employees, heads of institutions, the President of Bihor County Council, Ilie Bolojan, and ordinary employees of state institutions.