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BNS's Costin: Increase in minimum salary by 8pct is insignificant compared to energy prices increase

Digi24
factura energie

The head of government's proposal to increase the minimum gross salary by 8% would have an insignificant impact on the net income of an employee paid with the minimum wage, compared to the increase in the energy prices that the same employee will have to pay, the head of the National Trade Union Bloc, Dumitru Costin, told AGERPRES on Monday.

"An 8% increase in the minimum wage, without that correlation made in the Fiscal Code [increasing the personal deduction of employees with the minimum wage - editor's note], would have an absolutely insignificant impact, a symbolic gesture, which will not produce a significant impact on the net income of an employee," said Dumitru Costin.

Late last week, Prime Minister Florin Citu said that he was considering increasing the minimum gross salary by 8%, maybe as of November 1 or December 1, 2021.

However, the BNS leader said that the Government's option of increasing the minimum wage by 8% is not a serious approach, because this figure is not based on a calculation mechanism.

According to the same source, the government should instead increase the personal deduction for the employees with a minimum salary.

The president of the trade union organization claims that the increase in the minimum wage, in the absence of an increase of the personal deduction, will only serve to supply the state budgets.

Last but not least, the BNS leader said that the implementation of the minimum salary increase starting with November or December, instead of January, aims to increase the budget revenues.

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