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Romania’s Finance Minister Ionut Misa announced on Tuesday that private sector employers will soon be obligated to effectively increase gross wages, through higher mandatory contributions linked to wages. Unions in the country fear that this, instead of realistically increasing wages, will only lead to employers reducing net wages, to make up for the higher mandatory contributions.
At a press conference, the Minister said that this is indeed a concern and one that his ministry is aware of. Misa announced that new legislative changes are also expected soon, with “a law that these contributions will be transferred to the employee and the employer will have to keep a certain level of gross salary.”
Feature image source credit: Britchi Mirela [CC BY-SA 3.0], via Wikimedia Commons