Romanian government raises minimum wage by 10% from Oct

Romania's coalition government has raised the monthly gross average minimum wage by 10% to 3300 lei ($699) as of October, its spokesperson said on Thursday. ($1 = 4.7222 lei) ($1 = 0.9507 euros)

Romania's coalition government has raised the monthly gross average minimum wage by 10% to 3300 lei ($699) as of October, its spokesperson said on Thursday. The increase will benefit just under 1.9 million workers in the European Union state. Prime Minister Marcel Ciolacu said a further hike would be discussed for 2024.

The move comes days after the government approved a draft bill that will introduce new taxes from 2024, raise other levies, eliminate some exemptions and trim state spending. Critics have said the new measures will negatively impact the net income of workers, as well as boost inflation as companies transfer the costs.

Fiscal consolidation is key to ensuring Romania continues to receive EU recovery and development funds - roughly 74 billion euros by 2027 - which are underpinning infrastructure investment and economic growth. The coalition government will exceed this year's deficit target of 4.4% of gross domestic product by more than one percentage point and has asked the European Commission to accept a larger deficit.

Romania holds presidential, general, local and European elections in 2024. ($1 = 4.7222 lei)

($1 = 0.9507 euros)