Inflation of 10.4% wipes out minimum wage rise: losses of up to 500 RON/month

The minimum wage increase introduced at the start of the month has been almost entirely wiped out by recent price rises. According to the latest analyses cited by Realitatea PLUS, Romanians are losing between 100 and 500 RON per month due to ever-rising prices.

Approximately 1.8 million employees on the minimum wage received a net increase of just 125 RON. However, inflation has reached 10.4%, and this figure means that the extra money is quickly absorbed by rising food prices, utility bills, and the cost of services. Furthermore, alongside the minimum wage rise, the tax-free allowance was reduced from 300 to 200 RON, meaning that the increase employees actually feel in their pockets is smaller than the gross figure suggests.

Trade unions call for a minimum wage of 5,000 RON

Trade union representatives argue that the gross minimum wage should reach at least 5,000 RON next year, in order to recover at least some of the lost purchasing power. Without a more substantial increase, low-income employees remain the worst affected by inflation, as basic living costs already consume almost their entire salary.

Data from the National Institute of Statistics show that the average wage has fallen by at least 160 RON during a period in which prices continue to climb. The average pension is also below the value of the minimum consumption basket — a situation that forces pensioners to cut back on shopping or forgo other expenses in order to cover food, medication, and utility bills.

Incomes could remain frozen next year as well

It remains to be seen whether the incoming Government will decide to index pensions and wages. If they are not increased, it will be the third consecutive year in which they remain at the same level. Trade unions are warning that another delay would deepen the loss of purchasing power, since, with inflation running high, wages and pensions that go unraised are worth less and less with each passing month.