![]() ![]() the share of employees from the vulnerable companies of total number of employees from the selected companies was 11.7%.468,804 employees worked for these companies.140,980 companies considered vulnerable.In total, according to the 2015 statistics, it is about: approximately 72.5% of the micro-enterprises. ![]() The vulnerable companies are, according to the study, the companies in which the average annual gross wage per employee is set around the minimum annual gross wage, with a deviation of up to 10%.Ĭompanies where the minimum national wage exceeds 60% of the average gross wage paid by these companies: The increase of the minimum wage will be perceived at the highest level by the vulnerable companies to which any increase of these incomes represents a major competitivity risk. It is a strong influence, meaning that the minimum wage is an important driver of the wage growth in the period under review. Minimum wage increases by 20% (to 1,500 lei in 2017)Īnnual average growth rate of the average gross wage is of 7.32%Īnnual average growth rate of the average gross wage is of 15.33%Īnnual average growth rate of the average gross wage is of 23.16%Ī 10% increase of the real minimum wage leads to the increase of the average wage by 7.5%. Minimum wage increases by 10% (to 1,375 lei in 2017) Minimum wage maintains at the level of 1,250 lei in 2017 Hypothesis Scenario 1 Scenario 2 Scenario 3 Increasing the minimum wage does not automatically lead to proportional increases of the average wage, mentions the study. Impact on the average gross wage: All three scenarios of increasing the minimum wage show an upward trend of the average gross earnings during the period under review, but the growth pace is different. Note: several levels of the national minimum gross wage have been considered for 2017 Year Total number of employees Number of employees with the minimum wage Share of lowest-paid employees of the total number of employees (%) National minimum gross wage ![]() Minimum age and number of employees on minimum wage The share of lowest-paid employees of the total number of employees evens out, in case of a moderate growth – from 1,250 lei to 1,300 or 1,325 lei – but the share exceeds 25% when the minimum wage exceeds 1,450 lei. 10% increase of the national minimum wage.freezing the minimum wage guaranteed for payment.The study includes calculations on three possible scenarios in 2017: The three scenarios of increasing the minimum wage and their impact Overall, the empirical results showed that on long-term, the minimum wage has a positive and statistically significant impact on the informal economic activity in Romania, while on short term this impact is not supported by empirical evidence. The INCSMPS experts have identified a negative relationship, of substitution, between the two economies, formal and informal, which means that the black economy plays the buffer role (safety valve) for certain periods of time and certain categories of persons (young or low-skilled workers). ![]() There is a relationship of „in tandem movement” between the changes in the minimum wage and the informal economy, says the study, which is seen from the analysis of the 2000 – 2015 period:Įvolution of the minimum real wage vs the informal economic activity (2000-2015) Raising the minimum wage guaranteed for payment will not though automatically led to an increase by the same amount of the total obtainable income of the household, because many families paid with at least one such salary are also benefiting from state support (guaranteed minimum income or family support allowance). It draws attention to the fact that „figures, although statistically valid, should be analysed cautiously because productivity might be influenced by many factors and the link between the minimum wage and productivity is not very close„, as shown in the econometric model used for the analysis. „ It seems that the increase of costs in Romania – caused by raising the minimum wage – is not counterbalanced by increased productivity,” is the conclusion of the study. The impact of the national minimum salary on the work productivity is negative – an increase of the minimum salary by 10% would have as result a decrease of the work productivity by 2.3%, according to a study conducted for the Government by the National Scientific Research Institute for Labour and Social Protection (INCSMPS). ![]()
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