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Patrons and trade unions have proposed raising the minimum wage in Moldova to 6,000 lei starting January 1, 2025.

Patrons and trade unions have proposed raising the minimum wage in Moldova to 6,000 lei starting January 1, 2025.

This proposal was presented by Igor Zubcu, Chairman of the National Confederation of Trade Unions, during a meeting of the National Commission for Collective Consultations and Negotiations. He noted that earlier this year, discussions were held about increasing the minimum wage. It was decided that the technical group responsible for setting the minimum wage should meet at least once every three weeks. They were to develop a mechanism to align the minimum wage with the European Directive on adequate minimum wages over the next 3-4 years, with a final project expected by fall. However, this schedule has not been followed. At a tripartite meeting on August 5, involving patrons, trade unions, and the Ministry of Labor and Social Protection, a proposal was agreed upon to set the minimum wage at 6,000 lei starting in 2025. Igor Zubcu explained that this proposed minimum wage takes into account the actual subsistence level in the country for different categories. However, to meet minimum needs, the wage should be at least around 7,000 lei (5,900 lei after taxes). He urged a return to the agenda of establishing a minimum wage so that the government could approve a corresponding decision this fall. “Businesses have repeatedly advocated for the minimum wage to be known at least three months before the start of the new year, so companies have time to plan expenses accordingly,” noted the head of the trade unions. The head of the Ministry of Labor and Social Protection, Alexei Buzu, stated that discussions on this issue would resume by fall, as all ministries are currently busy with the 2025 budget layout. He clarified that compliance with the European Directive does not necessarily mean an increase in the minimum wage, but rather its clarification. “We cannot increase the minimum wage automatically without prerequisites such as economic growth and inflation,” said Alexei Buzu. However, the head of the trade unions believes that the minimum wage should be increased to 50% of the average monthly salary in the country, which would currently be 6,850 lei. Entrepreneur Igor Crapivca offered an alternative opinion, suggesting that too much focus is placed on the minimum wage. He believes more emphasis should be on economic development and increasing labor productivity so that the minimum wage rises naturally. He also mentioned the need to consider how to mitigate the negative impact of a minimum wage increase on small businesses. Crapivca also noted that a mechanism for optimizing social taxes has been discussed for a long time, but the Ministry of Finance has not yet been willing to consider this approach. As a reminder, from January 1, 2024, the minimum wage in Moldova’s economy increased by 25% to 5,000 lei. //13.08.2024 — InfoMarket.

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