The minimum wage of 2,700 RON falls short of the estimated consumption basket of over 5,000 RON

Nearly two million Romanians earning the minimum wage are feeling the effects of rising prices ever more acutely over recent months, according to a Realitatea PLUS report. Although the minimum wage increased by 125 RON in July, reaching 2,700 RON, this rise was effectively cancelled out by inflation, whilst the cost of living continues to climb.

The core issue is that 2,700 RON remains well below the minimum monthly consumption basket for a single person, estimated at over 5,000 RON. In practice, an employee on the minimum wage earns less than half the amount needed to cover basic living expenses.

Direct impact on household budgets

The gap between income and the actual cost of living is having tangible consequences: growing numbers of Romanians are falling behind on utility bills or are being forced to borrow money to cover food and other essential expenses.

In this context, whilst household incomes fail to keep pace with rising prices, taxes levied on goods and services are generating higher revenues for the state budget. For those on low wages, every new price increase adds further pressure to an already stretched budget.