In Thursday's meeting, the Government will approve, through a decision, the increase of the gross minimum basic salary for the country guaranteed in payment. The decision, taken three days before the local and European parliamentary elections, is criticized by the business environment for the lack of economic justification and the increase in costs for private companies.
The government will approve the increase of the gross minimum wage in Thursday's meeting – Photo Archive
“Through this normative act, it is proposed that the gross minimum basic salary per country guaranteed in payment be increased to 3,700 lei per month starting from July 1, 2024, which represents an increase of 12.12% compared to June 2024″it is stated in the substantiation note of the project, according to Agerpres.
On Thursday, the government is discussing a draft emergency ordinance to increase the gross minimum wage to 3,700 lei and increase the untaxed amount from the minimum wage from 200 to 300 lei. Minimum wages in agriculture and construction will remain at 3,436 lei and 4,582 lei, respectively.
Approximately 760,000 employees currently benefit from the minimum wage, and the increase to 3,700 lei will affect 1,871,266 employees. The industry warns that this increase will put additional pressure on companies, especially in industries with low profit margins, and could lead to price increases, according to Economedia.
The government is working on a new calculation formula for the minimum wage, based on the annual rate of inflation, GDP, employed population and average gross wage earnings.
Other projects adopted in Thursday's meeting
In Thursday's meeting, the Government will address several projects. Among them is the amendment of GEO no. 18/2024, which targets the IMM PLUS state aid scheme, by increasing the total budget to almost 15 billion lei and the ceiling of state guarantees to over 13 billion lei. This measure will allow to support another 2,300 SMEs.
Also, the Government will amend the Romanian Citizenship Law no. 21/1991, introducing an additional integration indicator for applicants and simplifying the residence requirements. Another item on the agenda is the ratification of the Framework Agreement on the International Solar Alliance (ISA), signed by Romania in Dubai in December 2023.
In the field of infrastructure, the technical-economic indicators for the “Focșani – Brăila Express Road” project will be approved and 2.83 million lei will be allocated for the modernization of hospitals under the Ministry of Transport. At the same time, the establishment of the Timișoara Boulevard no. Hospital will be approved. 101E, Sector 6, Bucharest.
The Executive will approve, also by decision, the Methodological Norms for the application of the provisions in the matter of service pensions provided by Law no. 303/2022 regarding the status of judges and prosecutors and Law no. 47/1992 regarding the organization and functioning of the Constitutional Court.
Also on the agenda of the meeting is the amendment of the rules for combating ragweed, extending the obligation to remove the plant throughout the year. In addition, the Government will support Romania's candidacy for the organization of the 2027 European Youth Olympic Festival in Brașov.
In the analysis of the Government there is also a project of an emergency ordinance for the modification and completion of Law no. 227/2015 on the Fiscal Code, as well as other fiscal measures.
