Minimum salary increases by 27% in the construction field

"It is a significant raise, which we have negotiated with trade unions. Employees will benefit from it as soon as possible, probably as of December 2007 or January 2008," said Plosceanu at the "Romania Construct Forum" conference. He added that the gross minimum salary may amount to a monthly RON 800 (some €220.86) by the end of next year. The salary growth rate is equivalent to 22-23 percent this year.

"We must correlate this salary increase with productivity. Most companies have the technology, now the problem is adapting the workforce to its demands," explained Plosceanu. He mentioned that salaries in the construction field will continue to soar, as employer associations target the average level in Poland and Hungary by 2009, where the average monthly salary is €600-650.

ARACO data indicates that the share of labor costs in terms of total cost of a product ranges from 5-22 percent, while construction materials account for 40-55 percent.