Employers' Associations Call for Minimum Wage to Remain at 4,050 RON – Impact on Pensioners

The employers' organisation IMM România (Romanian SME employers' federation) is opposing the proposed increase in the minimum wage from 4,050 RON to 4,300 RON, calling for the current level to be maintained for at least the first half of 2025. This position could have indirect implications for both current and future pensioners.

Beniamin Lucescu, a representative of the organisation, explained that although they had supported minimum wage increases over the past four years, the current economic climate does not permit such a rise. The organisation is calling for a review after the first six months of next year, taking into account the impact of new taxes and the VAT increase.

According to a study conducted on a sample of 2,017 entrepreneurs, the effects of a wage increase would be significant for the national economy. Raising the minimum wage would trigger a chain reaction, affecting all salary brackets and substantially increasing businesses' operating costs.

Impact on the economy and pensions

The study shows that 14.7% of business owners would be forced to close their operations in the event of a minimum wage increase, while others would scale back their activities or lose competitiveness. This scenario could affect the collection of contributions to the pensions system.

For pensioners, the situation presents a complex dilemma: on one hand, a higher minimum wage could contribute to better funding of the pensions system through increased contributions; on the other, business closures would reduce the number of active contributors.

The final decision is due to be taken next week within the National Tripartite Council, and its impact will be felt both in the current economy and in the long-term sustainability of the social protection system for older people.