The minimum wage in Moldova should be 50% of the average wage in the economy - Veaceslav Ionita
This opinion was expressed by, economic policy expert of the Institute for Development and Social Initiatives (IDIS) Viitorul in his analysis of the procedure of adjusting the minimum wage in Moldova to the European average. Analyzing the minimum wage in the economy, Veaceslav Ionita noted that in 2010 it was 1,100 lei per month, in 2015 - it increased to 1,900 lei, in 2020 it amounted to 2,775 lei, and in 2024 - 5,000 lei. “Before 2010, the minimum wage did not correspond to reality. It was more formal than real. Until 2021, some categories of workers, including budgetary employees, did not feel any welfare, because the minimum wage, although gradually increased, did not provide them with the necessary minimum. After 2022, through the policy of adjusting the minimum wage to the European standards, Moldova improved the social protection of the employees,” Veaceslav Ionita said. He also noted the growth of the average salary in the country - from 2,972 lei in 2020 to 14,300 lei in 2024 (forecast), as well as the expected increase in the following years - up to 21,500 lei per month in 2027. “Except for a few years when there were economic crises, there has been a salary increase almost every year,” the expert said. While speaking about the ratio between the minimum and average wages in the economy, Veaceslav Ionita noted that in 2010 it was 34.3%, in 2015 - 40.5%; in 2021 - 31.4%; in 2023 - 32.8%, in 2024 (according to preliminary estimates) - it will amount to 35%. At the same time, the expert analyzed the minimum wage in EU countries in 2024: Luxembourg – 2,571 euros/month; Belgium – 1,955 euros/month; Netherlands – 1,934 euros/month; Ireland – 1,775 euros/month; France – 1,709 euros/month; Croatia - 700 euros/month; Latvia - 620 euros/month; Romania - 605 euros/month; Hungary - 579 euros/month; Bulgaria - 477 euros/month. In Albania, a country that, like Moldova, aspires to become an EU member - 360 euros/month, and in Moldova - 260 euros/month. According to the economist, in countries with a high level of protection, such as France, Croatia, Bulgaria, Luxembourg, Portugal, Slovenia, Spain, Belgium, Greece, Romania, the ratio of minimum and average wages is within 50-57%. In countries with a medium level of social protection, such as the Czech Republic, Ireland, Cyprus, the Netherlands, Slovakia, Lithuania, Estonia, Hungary, Germany - 40-50%. In countries with low levels of protection such as Poland, Malta, Latvia - 38-40%, and in Moldova - 35%. “As far as the protection of workers is concerned, we have to take into account the fact that even if the average wage in a country is low, the state guarantees that the most vulnerable workers will not be paid less than 50% of the average wage. The country protects its workers when the most vulnerable workers receive wages above 50% of the average wage,” the economist believes. Veaceslav Ionita believes that in order to correlate the level of minimum wage in Moldova with the European one, it is necessary to set a minimum wage of 6,200 lei per month for 2025, which will amount to 38% of the projected average wage for the next year. In 2026, the minimum wage is projected at 7,700 lei per month and the ratio between the minimum and average wage is 41%; by 2027, the minimum wage is projected at 9,350 lei per month, and the ratio between the minimum and average wage will then be 43.5%. // 19.11.2024 - InfoMarket.
