Romania’s Social Democratic Party (PSD) may insist on hiking the minimum wage as of January 2026, in line with the national legislation, but also to implement the Directive (EU) 2022/2041 on minimum wage as already envisaged last year. This puts at risk the government’s plans for keeping the wages in the budgetary sector constant until the end of 2026, for the second consecutive year – a key element of the fiscal consolidation strategy pinpointed by the budgetary measures legislated in July.
The topic risks turning into another major point of disagreement among the Social Democrats and their ruling partners, besides the local administration reform and the Bucharest mayoral elections.
According to Digi24.ro, a decision regarding next year’s minimum wage is expected to be made by the end of next week (October 24).
The decision is important for the 2026 budget planning, since it would result in higher wages across a large part of the budgetary sector, but will have a positive net impact on the budget balance (not counting second-round effects) as a result of higher income taxes and contributions collected from the private sector. The private sector representatives accuse, however, that more labour cost pressures would further complicate their situation amid an already gloomy economic outlook.
MP Mihai Fifor (PSD) stated that freezing Romanians’ incomes until the end of 2026 is unacceptable and PSD will categorically support in the Coalition that the government respect the European minimum wage mechanism, according to News.ro.
Former labor minister Marius Budai was quoted by B1tv.ro as saying the minimum wage should certainly increase under a calendar to be discussed.
Economist Cristian Socol, behind the economic policies promoted by PSD, argued for such a move in a column published by Mediafax.ro. He invoked broad social reasons, the milestone 392 under PNRR (envisaging predictable regime of the minimum income indicators), the large number of employees receiving the minimum wage (over 1 million or some 20% of the total) in Romania, the wages already small in Romania compared to other countries in the European Union, several poverty and income indicators placing Romania among the poorest Union’s countries, the second-lowest labour cost in EU (37% of the EU average), and the decent labor productivity (74% of the average EU) lagging behind the EU average by a smaller margin compared to the labor cost.
In contrast, the employers’ associations and some economists argued against the measure of raising the minimum wage in January 2026. Primarily, waving such a measure for a year was implicitly envisaged under the budgetary measures legislated in July, provisioning for steady wages and pensions throughout the entire year 2026.
Depending on the negotiations between the government and the social partners, the increase in the minimum wage ranges from +6.8% to +17.9%. The rates are calculated for a minimum wage set at 47% and 52% of the expected average gross salary.
Currently, the minimum gross wage in Romania is RON 4,050 (some EUR 800). For the minimum wage set at 50% of the average expected wage, this would result in a minimum wage of RON 4,590 or 13.3% more compared to the current level.
iulian@romania-insider.com
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