Tag: minimum

  • June 6, 2024 UPDATE

    June 6, 2024 UPDATE

     

    STATEMENT The president of Romania Klaus Iohannis is one of the 17 heads of state to sign a joint statement pleading for a ceasefire between Israel and Hamas. It is time for the war to end and this deal is the necessary starting point, the statement reads. The signatories call on both parties to agree to the US president Joe Biden’s plan, which provides for a 6-week ceasefire in a first stage, accompanied by an Israeli withdrawal from the densely populated areas of Gaza, and a hostage-prisoner exchange. In a second stage, whose details are yet to be set, a permanent end of hostilities and the release of all hostages would take place.

     

    WAGES The government of Romania Thursday approved an increase of national minimum wages to roughly EUR 740 as of July 1. Over 1.8 million employees are estimated to benefit from this measure. The EUR 40 tax deduction for minimum wages has also been raised to EUR 60. The government also passed a bill amending the Romanian Citizenship Act. According to the justice ministry, the measure was required in order to modernize the current legislative framework, to facilitate Romania’s participation in the US Visa Waiver programme, and to help complete benchmarks in the National Recovery and Resilience Plan. The new provisions concern the digitization of procedures, so that the application stages may be followed online, the introduction of a citizenship card, and the use of biometric identifiers such as face and fingerprints.

     

    D-DAY Scores of heads of state and government celebrated in Paris on Thursday the 80th anniversary of the Allied Normandy landings, a decisive moment in defeating Nazi Germany in WWII. The US president, Joe Biden, said Ukraine was invaded by a tyrant and promised his country and NATO would stand strong with Kyiv for as long as necessary in this conflict initiated by Russia. He vowed that the free world would not “surrender to bullies.” Attending the ceremonies in France were also King Charles and the French president Emanuel Macron.  They paid tribute to the 73,000 British troops who took part in the landings. Also present were WWII veterans, many of them over 100 years of age. Locals as well as lots of tourists were in attendance. Russia’s president, Vladimir Putin, was not invited to take part because of his role in the invasion of Ukraine.

     

    VOTE Polling stations opened on Thursday in the Netherlands, the first country to vote in the elections for the European Parliament due over June 6 and 9. Roughly 370 million people are expected to vote in all the 27 EU member states in the following days. Analysts are forecasting a rise of far-right and Euro-sceptical parties amid frustrations caused by the rising cost of living, migration and green policies that are getting more and more unpopular. Like in most EU countries, in Romania the vote for the European Parliament is due on Sunday, concurrently with the local elections. Romania gets 33 seats in the European Parliament.

     

    BOOK FAIR Until June 16th, Romania will be attending the 83rd edition of the Madrid Book Fair with a national stand and 20 literary events. This has been Romania’s 13th participation in this large-scale event staged by the Romanian Cultural Institute through the National Book Centre and the Romanian Cultural Institute in Madrid, with support from the Ministry of Culture and the Romanian Embassy in Spain. Among the protagonists of the events there are writers Gabriela Adameşteanu, Eugen Barz, Aura Christi, Nichita Danilov, Cristian Fulaş, Miguel Gane, Stejărel Olaru, Radu Paraschivescu, Radmila Popovici, Andreea Răsuceanu and Radio Romania Journalist Corina Sabău.

     

    TENNIS The Romanian-Ukrainian pair Gabriela Ruse/Marta Kostyuk qualified without playing in the semis of the doubles contest in Roland Garros as Russians Mirra Andreeva and Vera Zvonareva failed to attend the quarterfinals on Wednesday. Ruse and Kostyuk have won a check of EUR 148,000 and 780 WTA points. This is the second Grand Slam semi-final for Ruse and Kostyuk after the Australian Open last year. In the semis Ruse and her partner will be playing the all-Italian pair, Jasmine Paolini/Sara Errani.

     

    FOOTBALL Romania’s football team will be up against Lichtenstein in Bucharest on Friday night in their last training game before the European Championship in Germany. In another friendly on Tuesday our footballers managed a goalless draw against neighbouring Bulgaria. In Group E of Euro 2024, Romania will be playing Ukraine on June 17 in Munich, Belgium on June 22 in Cologne and Slovakia in Frankfurt 4 days later. Officials of the football federation in Bucharest say they expect a large number of Romanian football fans to attend, whether residents in Germany or in other Western European countries. Romania’s last participation in a European football tournament was in 2016 and in the World Cup in 1998. (AMP, bill)

  • Minimum wages to go up in Romania

    Minimum wages to go up in Romania


    Faced with one of the steepest inflation rates in the European Union, Romanians have difficulties covering their current expenses. The low-income categories are hit the hardest, and can barely cope with prices that have been surging this year, against the background of the Russian Federations invasion in Ukraine.



    This war has upset the lives of Ukrainians and has entailed sanctions for Russia, an energy crisis in the EU, reduced grain exports from Ukraine, growing isolation for Moscow and a higher inflation in Europe.



    In Romania, the inflation rate has reached around 15.5%, and the National Bank expects it to go up to 16.3% by the end of this year. The situation requires measures, and decision-makers first looked at the elderly, for whom they recently decided to increase pensions by 12.5% as of January 1, alongside further assistance for the lowest-income categories.



    Low-wage workers were next, and on Thursday the government and social partners reached an agreement. Gross minimum wages will be raised from approx. EUR 510 at present to nearly EUR 600 as of January 1. A total of 2.2 million employees will receive some additional money. Also, in constructions the minimum wage will be around EUR 800.



    The decisions were made following consultations between the government, trade unions and employers associations. Representing small and medium enterprises, Vasile Priceputu explained that out of the EUR 600, EUR 40 will be tax-free, and added that early next week the members of the three-party council for social dialogue will also discuss possible deductions for the amounts in excess of EUR 600.



    Vasile Priceputu: “People must know that the minimum wages will be RON 3,000 as of January 1, 2023, and RON 200 will be deductible. As I said during the meeting, we all want our employees to make more money. Lets be reasonable, in constructions there are no net salaries below RON 4,000. Even the worst unskilled worker gets more than RON 4,000. This is also a reasonable suggestion, and the Council supported it.”



    The increase is expected to have a positive impact on economic growth, both by encouraging employment and strengthening peoples spending power, and by reducing illegal employment. On the other hand, the labour ministry argues that raising minimum wages will also encourage certain categories of employees, particularly women and youth, to go into sectors with high demand for workforce. (AMP)


  • Debates on the minimum wage

    Debates on the minimum wage

    In Romania, the minimum wage is to
    go up beginning on the 1st of January next year. The increase is
    around 30 euros before tax. Moreover, there will be no difference from then on
    between the minimum wage based on education background. This is the proposal
    made by the Liberal cabinet led by Ludovic Orban at a meeting with trade
    unions, who are pushing for a more substantial increase. The prime minister has
    explained that he wished the calculation of the minimum wage to be based on the
    economic reality and not cause major disruptions.




    The government has proposed a 7.2%
    increase in the minimum wage to 2,230 lei, while the Cartel Alfa trade union
    confederation says it should grow to 2,260, as agreed in September with the
    former Social Democratic government. The leader of the confederation, Bogdan
    Hossu has explained that the inflation rate and work productivity should be
    calculated based on this year’s level. Bogdan Hossu:




    First of all, the inflation rate is
    calculated based on the month of October and we’re not taking into account the
    annual inflation rate. Secondly, the productivity is calculated individually,
    but in our opinion we should be discussing the hourly productivity of salaried
    work because we are discussing about people in employment generally.




    The National Trade Union Bloc has
    proposed an even more substantial increase, to 2.284 lei. Its leader Dumitru
    Costin has raised another very important issue. He said changes should also be
    made to the public sector salaries law to prevent an explosion in the expenditure
    level and for the private sector not to be affected owing to the fact that the
    salaries of dignitaries and public sector salaries are calculated based on a
    coefficient that is multiplied by the minimum wage. So, if an employee on the
    minimum wage received an extra 83 lei net a month, a city mayor may receive ten
    times more. The prime minister said he would look at the proposals to take into
    account the economic forecasts, but warned that they might change to some
    extent. Ludovic Orban:




    I have noted the proposal to take
    into account the forecasts for next year. I’ll give you an example: the budget
    for 2019 was based on a growth forecast of 5.5%, but in reality, the growth
    rate for this year will probably be around 4%.




    The prime minister also says that
    trade union associations support the amount of the minimum wage proposed by the
    government. The change to the minimum wage should be based on elements that
    have to do with the profitability of businesses, which should not be affected
    by the increase in the minimum wage, Ludovic Orban has also explained.