Mihai Tudose says wages will not decrease after pay contributions switches to employees

Prime Minister Mihai Tudose and Finance Minister Ionut Misa told a meeting on Tuesday of the Tripartite National Council for Social Dialogue that switching the pay of some social security contributions from employers to employees in 2018 will not have a negative impact on wages, either in the public or in the private sector, according agerpres.ro.

According to a Government press statement, the central topics of the talks held at the Government House between the prime minister, Cabinet members and leaders of the major confederations of trade unions and employers' associations in Romania, in the format of the Tripartite National Council for Social Dialogue, were a draft emergency ordinance amending the Tax Code, with emphasis on switching the pay of social security contributions from employers to employees, and an increase in the minimum wage. 

About switching the pay of some social security contributions from employers to employees in 2018, Prime Minister Mihai Tudose and Finance Minister Ionut Misa reiterated that this measure will not have a negative impact on wages, either in the public or in the private sector. 

"We have talked with business leaders and wages will increase. The business community told me there was an opportunity to pay people better," said Tudose. 

The statement says the employers' associations rated the idea "a very good measure," while the trade unions stated themselves in favour of keeping the legislation on the pay of the contributions as it is. 

At the same time, an increase in the minimum wage to 1,900 lei starting next year, according to the objectives in the governance programme, was agreed by the trade union leaders and met no opposition from the employers, who mentioned the need for infrastructure development, especially in the areas of transport and agriculture, for the optimal exploitation of Romania's potential in terms of business development. 

Tudose announced that the incumbent government is considering a paradigm shift in transport infrastructure, and mentioned a meeting the same day with World Bank officials.