September 20, 2022

PSD Support Program measure that increased the minimum wage

More than 170,000 Romanians have benefited from the increased minimum wage thanks to PSD Support Program for Romania. To ensure the increase benefited employees completely, PSD supported an additional measure to exempt this raise from income taxes starting in June 2022.

The measure is part of PSD Support Program for Romania which aims to help private sector employers in increase workers’ wages to improve employee retention. PSD has prioritized policies that support workers so that we can prevent an exodus of the labor force from Romania in the midst of an increasingly difficult economic environment.

PSD plan also proposed to apply the same tax model of wages that applies to the regulated construction industry in the agriculture and the food industries. As a result, more than 230,000 employees benefited from the increased minimum wage and the other exemptions and tax reductions.

PSD believes that such measures are vital to protecting the working class who face the greatest difficulties challenges from global inflation and the European energy crisis. To fully support them, the Romanian Government should adopt the recommendations of the European Directive on the European minimum wage, so that the minimum wage income in Romania reaches 3,000 lei/month.