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ALFA's Hossu: 8pct increase in minimum salary would count as 1pct, at the most, considering inflation

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Bogdan Hossu

The Government's proposal to increase by 8% the minimum salary for next year would actually count as a 1% increase in the minimum salary, since the year-end inflation will probably exceed 7%, the president of the Cartel ALFA National Trade Union Confederation (CNS), Bogdan Hossu, told AGERPRES on Monday.

"We have a problem with this because there were no actual calculations made: the National Bank, the only institution with an expertise related to inflation, currently estimates an inflation rate exceeding 5%, which will probably reach more than 7% at the end of year, while the minimum salary is calculated for next year, not for November. So, given all these, it is clear that the 8% is insufficient and, as the Fiscal Council pointed out, the lack of an adequate minimum salary policy will lead to the continuation of migration, with all the negative consequences on the Romanian labour market and on employers' jobs," said Bogdan Hossu.

The leader of the trade union organization pointed out that the increase in the minimum salary by 8% would practically represent for the employees the preservation of the purchasing power of the current year.

The president of CNS Cartel ALFA underscored that the increase in the minimum wage by 8% does not facilitate the goal of equalizing it as soon as possible with the minimum cost for a decent living.

The president of CNS Cartel ALFA explained that following the BNR's estimates on inflation, a 14% increase in the minimum wage would be an adequate increase.

He made a connection between the proposal of the PM regarding the increase in the minimum wage in November or December and the internal elections of the National Liberal Party (PNL).

Prime Minister Florin Citu mentioned, at the end of last week, that he was considering increasing the minimum gross salary by 8%, which could be applied starting with November 1 or December 1, 2021.

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