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AUR's draft law for increasing minimum wage to 5,000 RON
A draft law of the Alliance for the Union of Romanians (AUR) proposing to increase the minimum wage to 5,000 lei and to reduce labor taxation to a maximum of 25% for the first 5,000 RON has been submitted to the Parliament, informs the political party.
"In this way, we want to connect the labor market to the new economic reality in Romania, by increasing the net income of employees, but without putting additional pressure on the business milieu by increasing labor taxation in absolute value. The state budget will not be affected, because the absolute value collected remains unchanged. A positive effect of the increase in the minimum wage and the decrease in labor taxation in the form proposed by the AUR is the increase in consumption, which will lead to an increase in the state's receipts from VAT", says an AUR press release sent to AGERPRES.
According to AUR, another beneficial effect of the proposed measure is the attraction of the labor force from among Romanian citizens who have gone abroad.
"The AUR solution transposes into law an already existing reality: Romanian entrepreneurs are forced to break the law and offer additional payments to employees, taking money out of companies in the form of dividends that they distribute to employees. Thus, by applying this legislative measure, there will be positive consequences on the business milieu", explains the AUR in the quoted press release.
