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Monday, 28 Nov

The minimum wage in 2017 and the Draft Law on the unitary pay system have been addressed within the National Tripartite Council

Prime Minister Dacian Ciolos has attended the meeting of the National Tripartite Council

 

 

On today's National Tripartite Council (CNT) meeting, the Government representatives have discussed with the social partners about the level of the minimum wage in 2017 and they have presented several amendments provided by the draft law on the unitary pay.

The Government has requested the social partners, trade unions and employers to put forward over the next two weeks their proposals on the gross minimum wage guaranteed in payment for 2017,  and by the end of the tenure, the Executive will establish the new minimum wage, according to legal provisions.

Prime Minister Dacian Ciolos has conveyed to the social partners that for year 2017, the level of the minimum wage per economy will be established following negotiation between trade unions and employers, the same as during the previous years. As of next year, the level of the minimum wage is to be set whereby a mechanism of calculation on which a group of independent experts has been working.

„I came up at this meeting without preconceived ideas. We are open to the social partners’ proposals and we are today here to listen to your opinions, but also to continue to work together on a transparent mechanism meant to ensure predictibility in the evolution of the minimum wage”, Prime Minister Dacian Ciolos has stated.

The Labor Minister Dragos Pislaru has stated that to establish the minimum wage, several steps are needed, the first being the centralisation of the proposals made by the trade union and employers confederations, and a new  National Tripartite Council is to be later convened to reach a consensus.

The Labor Minister has added that to secure the predictibility of the minimum wage per economy, Minister has conveyed to social partners a study on the evolution of the minimum gross wage, guaranteed in payment, in Romania, and an assessement of the economic and social impact of its enforcement.

The study conducted by the National Institute of Scientific Research in the field of Labor and Social Protection includes analyzes and evaluation studies on the potential economic and social effects of the increase in the minimum gross salary guaranteed in payment. The study has a documentation character,  having no impact on establishing the minimum wage in 2017.

The results of the study are to be used in the second research phase to establish a transparent mechanism to set the minimum gross wage, guaranteed in payment, under the specific Country Regulations of the European Council of July 8, 2014 on Romania’s National Reform Programme.

The mechanism to establish the minimum guaranteed wage is established by a group of independent experts proposed by social partners, and it will be ready by the end of the year.

This study offers a picture of the remunerated persons in Romania who receive the minimum wage and it outlines their degree of exposure to poverty risk. Also, the study proposes five scenarios on the increase of the minimum wage and the impact of the enforcement of each scenario on the economic environment.

At present, the amount of the minimum gross wage per country guaranteed in payment is established based on the following elements:

Article 3 of the International Labor Organisation no.131/ 1970 on establishing minimum wages, ratified by Romania, in 1975;

Reducing the number of employees at poverty and social exclusion risk;

The European Commission’s recommendation on improving the share of the minimum wage in the average wage, so that the ratio between these two wages gets closer to 50 percent, as it is in the EU developped countries.

The economic factors, including the economic development requirements, productivity and the interest in maintaing a high level of use of labor force.

Thus, the minimum gross wage per country guaranteed in payment rose from 500 lei in 2008, to 1.250 as of May 1st, 2016, and its share in the gross average salary gain in Romania rose from 29, 8 percent as in 2008 to 46, 62 percent in 2016.

A synthesis comprising the main conclusions of the study:

http://www.mmuncii.ro/j33/images/Documente/Transparenta/2016/Studiu_salariu_minim_proiect-sinteza.pdf

 

The integral study can be consulted at : http://www.mmuncii.ro/j33/images/Documente/Transparenta/2016/Studiu_salariu_minim_proiect.pdf

With respect to the draft law on the unitary pay, the Labor Minister Dragos Pislaru has stated that it is necessary to earmark 19, 5 billions lei until 2022 in order to resolve all wage inequities in the public system. The average increase of salaries paid from public funds will amount to 37, 3 percent correlated to the forecast economic growth, and the ratio between minimum and maximum wage will be reduced to 1/13. Also, the Minister has announced that the draft law further provides that the biggest wage will be that of President, but that the Prime Minister’s wage will be reduced by 300 lei compared to the current level.

The draft law provides for increments for hard to occupy vacancies (30 percent), such as those of doctor and IT specialist, to offset the situations in which personnel recruitment is difficult. Also, the document provides for granting performance increments in the limit of 5 percent of the budget.

„With respect to the unitary pay law, I ask you a realist approach, so that we resolve the system inequities issue, and not affect wages in payment”, Prime Minister Dacian Ciolos has stated.

The draft law is to be sent to social partners given the consultations to take place within the Labor Ministry's social dialogue committee. 



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