All salaries in the private sector have been affected by the fiscal pseudo-revolution, according to Florin Jianu, president of the National Council for Private SMEs (CNIPMMR), who added that the increase in the minimum wage from RON 1,450 to RON 1,900 and the mandatory renegotiation of collective work contracts meant higher costs for entrepreneurs.

Jianu said that transferring contributions from employer to employee was a neutral measure which didn’t increase costs for companies, but the other measures did.

CNIPMMR conducted a survey among companies between February 7 and 16 on the effects of increasing the minimum wage, transferring contributions and increasing contribution levels for part-time employees.

Results of the survey showed that the 31.03 percent increase in the gross minimum wage created difficulties for 79.4 percent of respondents. 81.4 percent of survey respondents said that the measure resulted in higher expenditures for staff, including other employee categories besides those making minimum wage.

Asked whether the minimum wage increase would result in some employees being let go, 49.9 percent of participants said that it would.

Regarding the implementation/negotiation of the transfer of contributions, 58.6 percent said that they had difficulties in the process. Furthermore, 68.7 percent said that since January 1 they have had part-time employees (1-2 hours/day) whose salaries were lower than the amount of social contributions they needed to pay, which had been increased to the level of contributions paid by a full time minimum wage employee (RON 655).

The post Florin Jianu: the fiscal “pseudo-revolution” has affected all private sector salaries appeared first on Business Review.