As the inflation rate is of over 30%, the minimum salary in Moldova in 2023 should have been of at least 5,000 lei, said the president of the National Trade Union Confederation Igor Zubcu. According to him, all the European provisions stipulate that the minimum salary should represent at least 50% of the average salary in the country. But the Government didn’t accept the trade union’s proposal and the minimum salary for 2023 was set at 4,000 lei, IPN reports.
The head of the National Trade Union Confederation said the increase in the minimum salary for 2023 to 4,000 lei is insufficient when the prices have soared. The current minimum salary does not enable the employees to reach the limit of the minimum pension and the state is obliged to compensate for the difference.
“At the end of last year, we had an inflation rate of over 30%. Seeing that rise in prices, back last autumn we proposed that the minimum salary as from January 1, 2023 should be 5,000 lei. The European Social Charter and the EU Directive on minimum wage stipulate that the minimum salary in the country should be at least 50% of the average salary. The average salary for last year was 9,900 lei. We proposed that the minimum salary should be 5,000 lei. The minimum salary should enable the salary earner to have a minimum pension. The sum of 5,000 lei also covers the inflation of 30%,” Igor Zubcu stated in the program “Reflection Points” on Vocea Basarabiei channel.
Igor Zubcu noted the proposal to increase the minimum salary to 5,000 lei was accepted by representatives of employers. The measure would have contributed to eliminating envelope wages and would have brought more revenues to the state through taxes.
“The employers admitted that it is possible to pay a salary of 5,000 lei and this would lead to removing unfair competition. Everyone admits that no employer pays salaries lower than 4,000-5,000 lei. But a part is the official declared salary, while the other part is the envelope wage that forms part of the underground economy. The higher the salaries are raised, the more the employers pay officially and this brings larger volumes as taxes to the state. The Government didn’t find money to raise the salary to 5,000 lei. If the minimum wage had been 5,000 lei, the incomes to the social and health instance funds would have been larger. For us, it is important that these funds grow as an employee now maintains a pensioner and this is a big risk. At least two salary earners should maintain a pensioner,” said the president of the National Trade Union Confederation.
Last December, the Government of the Republic of Moldova decided that the minimum salary in the country as from January 1, 2023 is 4,000 lei for a full working program of 169 hours. This way, 285 million lei was allocated from the 2023 state budget for paying the higher minimum wage to public sector employees, except for those working for self-managing public institutions and authorities.
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