IMM Romania, a representative national employers’ confederation, is requesting the maintenance of the current gross minimum wage at 4,050 lei and in 2026, warning that an increase could lead to employee layoffs, market distortions through the rise of undeclared work, and a reduction in investments.
„The increase of the national gross minimum wage by the Government, coupled with the rise in taxation and without proposing a package of economic support measures for SMEs, will result in transferring all additional costs to entrepreneurs, a situation that will lead to the increase in prices of products and services of Romanian companies, resulting in loss of competitiveness,”
Considering the economic conditions and budgetary crisis affecting the business environment, companies currently need support measures and not cost increases," stated representatives of IMM Romania on Wednesday.
According to the cited source, the increase in labor costs in a period where there is a generalized increase in taxes and duties for the business environment inevitably leads to a decrease in the competitiveness of Romanian companies. The rise in insolvencies and the decrease in consumption indicate the economic downturn in Romania, creating additional pressure on SMEs.
"Over the past 3 years, the gross minimum wage has consistently increased above the inflation rate, as indicated by INS data, with the purchasing power of employees increasing in real terms. A new increase in the national gross minimum wage, in the current economic context characterized by economic and fiscal instability, will lead to employee layoffs, market distortions through unfair competition from undeclared work, and a decrease in investments," warned representatives of IMM Romania.
In their opinion, one way to increase wage income without unsustainably raising costs for employers can be achieved by reducing taxation on labor, thus resulting in increased income for employees.