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DECLARATION of the National Trade Union Confederation of Moldova (CNSM) on the increase of the minimum wage
National Trade Union Confederation of Moldova (CNSM) calls on the Moldovan Parliament to provide in the draft Law on State Budget for 2017 financial resources necessary to ensure the increase of the minimum wage to the subsistence level and further to establish it in report of 50 percent of the average wage.
A statement in this context was sent on Wednesday, December 14, to parliament speaker, Adrian Candu, chairman of the Parliamentary Committee on economy, budget and finance, Ștefan Creangă and president of the Parliamentary Committee on social protection, health and family, Oxana Domenti.
Below we place full content of the document:
DECLARATION of the National Trade Union Confederation of Moldova (CNSM) on the increase of the minimum wage
We declare our concern about the delay of the Government to review and increase the minimum wage.
In accordance with Law no. 1432 of 28.12.2000 on the setting and review of the minimum wage, the Government, together with employers and trade unions, should examine at least once a year, the increase of the minimum wage, taking into account the change of the consumer price index and the average wage developments in the national economy during the reference period, the volume of gross domestic product, labor productivity and the value of the minimum of subsistence level.
However, the minimum wage has not been changed since 1/10/2014, being established at that time in the amount of 1,000 lei.
Starting from the fact that from 2014 until the present social and economic evolution had negative repercussions on living standards and purchasing power of employees’ incomes, the consumer price index increased approximately by 119.0%, increased the minimum subsistence level by 8.8%, the minimum wage only covers 55.0% of it, being absolutely necessary to increase the minimum wage.
Moreover, in 2016 no changes have been made to reduce the tax burden on personal income, personal exemptions size remaining at the level of previous years.
Simultaneously, in 2016 there was an increase in the minimum guaranteed wage in the real sector up to 2100 lei, creating a discrepancy of more than double between minimum guarantees in the real sector and in the budgetary.
Increasing the minimum salary would increase the motivation of work of over 107 thousand employees in the public sector, payed under unique tariff Network, most of which, during 3 years, did not receive salary increases, function salaries amounting from 1,000 lei to 1,500 lei.
It is also inadmissible to maintain the current level of minimum wage close to the minimum old age pension, which, since the 1st of April 2016 is 948.84 lei.
The minimum wage in Moldova in comparison to the countries in the region is the lowest – about 46 euros. For example, in Romania, the minimum gross salary is about 277 euros, in Russia – about 117 euro, in Ukraine – 58 euros and will be doubled from the beginning of 2017.
It is also worth mentioning that the EU recommendations, addressed to all countries facing rising unemployment and poverty, are to increase the minimum wage to the level of 60% of the average wage.
In this context, we urge strongly Moldovan Parliament to provide in the draft Law on State Budget for 2017 financial resources necessary to ensure the increase of the minimum wage to the subsistence level and further to establish it in report of 50 percent of the average wage.
President Oleg BUDZA
