The minimum wage has increased by 125 RON, but inflation cancels out the effect for 1.8 million Romanians

The minimum wage increase, which came into effect over a month ago, has not translated into a better standard of living for the approximately 1.8 million Romanians who earn this income. The 125 RON rise has been effectively wiped out by higher prices for food, fuel, and utility bills, which have exceeded the extra amount received.

The national minimum wage currently stands at 2,700 RON, whilst the minimum monthly consumption basket for a single person exceeds 5,000 RON. The gap is, in many cases, covered through borrowing.

Beyond food expenses, people must also contend with utility bills alongside other essential household costs. At the end of the month, many find that their income is not sufficient to cover all of these necessities.