Moldovan minimum wage to increase gradually, reach subsistence minimum

Chisinau, 18 November /MOLDPRES/- The Labour, Social Protection and Family Ministry has worked out a draft decision to gradually increase the minimum wage until it reaches the subsistence minimum in Moldova.

According to the draft, upon the implementation of the law setting up the minimum wage, approved by the Moldovan parliament in 2000, “the amount of the minimum wage has been kept at the same level for long periods of time. However, experts had not taken into account the evolution of consumption prices, buying power, average wage or other indicators, when setting it up”.

“The EU recommends countries coping with growing unemployment and poverty increase minimum wage until it accounts for 60 per cent of the average wage. Thus, the purpose of the current draft is to set up a minimum wage based on the monthly average wage of the past year,” the draft reads.

The amount of the minimum wage is to be re-examined on 1 May every year. Thus, the minimum wage will account for 25 per cent of the monthly average wage in 2016, 30 per cent in 2017, 35 per cent in 2018 and 40 per cent in 2019.

The gradual increase in the minimum wage will ensure a direct raise of monthly retributions for almost 112 thousand people. The draft is to be approved by the government.

According to data unveiled by the National Confederation of Syndicates, the current minimum wage in Moldova’s budgetary sector amounts to 1,000 lei (50 euros), against a 1,900-minimum-wage in the real sector of the economy. The subsistence minimum equals to approximately 1,890 lei.

(Reporter D. Moraru, Editor A. Raileanu)