On Monday, Labor Minister Marius Buday was asked about the scenario of raising the minimum gross salary to 3,500 lei this year, and he said that there is an ongoing dialogue with unions and employers on the issue, News.ro reported.

When asked by Antena 3 whether there will be a scenario of reaching the minimum wage of 3,500 lei from January 1, 2024, the PSD minister said that the increase would be possible at the beginning of next year, but added that he did not want to give a figure to discuss beforehand in coalition and with social partners.

“Unfortunately, we’re not in a period where we can give extremely clear messages without making mistakes, and I’m going to refrain from doing that. This year, on January 1, there was a big jump in the minimum wage by 450 lei. The government also agreed to participate in this jump, and 200 lei is not charged,” said Buday.

“We have discussions with social partners, and such a decision can only be made at the dialogue table, with social partners, with trade unions and employers and the Government in the middle, as a mediator, which it should be. But all these things sometimes there is a saying in Romania that says “the best is the enemy of the good”. We have to see what we want, have clear and honest discussions with the business environment so that we don’t unbalance what we have now,” he added.

New discussions on raising the minimum wage

When asked if an increase to 4,000 lei from January 2024 is more likely, he said that he refrained from giving figures, but assured that there would be an increase in the minimum wage.

“I will refrain from unclear figures and information, which have been discussed for a long time in the coalition and with social partners, because it is incorrect. But discussions about a new increase in the minimum wage either at the beginning of the year or we will see when, but so that there is predictability for the business environment, but also taking into account the purchasing power of those who work for the minimum wage,” he said.

As a reminder, from January 1, 2023, the minimum wage for the economy was increased in conditions of high inflation to 3,000 lei gross, from 2,550 lei, of which 200 lei is tax-free.

This unprecedented growth in recent years has led to a significant increase in the number of private sector workers earning the minimum wage in the economy.

In a report published last week, the IMF estimated that inflation in Romania will reach 7.5% at the end of this year.