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Minimum wage stirs dilemma: Higher revenues or fewer unemployed?

Publicat la 19.05.2009, 21:00:00

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Minimum wage stirs dilemma: Higher revenues or fewer unemployed?

If the minimum salary is raised, the government could count on a slight increase in budget revenues, after the taxation base is widened, but at the risk of putting additional pressure on the jobless rate.

However, trade unions said they hope that the pressure on unemployment will be compensated through other economic measures. “Raising the minimum salary will be possible in the context of applying other measures to allow this, because, if we talk strictly about raising the minimum salary, employers associations will not agree,” said the President of the National Trade Union Block, Dumitru Costin.

The official said that, according to the calculations by trade unions, based on the value of the minimum consumption basket, a salary to cover the basic needs should be RON 720. “For a decent living, we request RON 800,” said Costin.

The President of Cartel Alfa trade union, Bogdan Hossu, said that the minimum salary should be increased in line with inflation. Thus, the minimum salary should reach RON 630 by year-end, while the monthly family revenue should amount to RON 860.

A representative of employers associations, Dan Matei Agathon, said that this is not the best time to discuss a rise in the minimum salary, considering the current economic conditions.

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