EXCLUSIVE: Romania Unemployment Aid No Longer Tied To Min Wage In 2011

Employment aid is currently at 75% of the minimum wage, plus 3% to 10% of the average gross wage for the past 12 months, depending on the jobless person’s social security contributions.

For 2011, the Government agreed with the IMF to raise the minimum wage to 670 lei (EUR1=RON4.2972) from the current RON600. The additional letter of intent agreed with the Fund after its review mission late October, obtained by MEDIAFAX, states the Government has committed to no longer tie unemployment aid to the minimum wage.

„After freezing the minimum wage in 2008, we shall increase it, generally to compensate for inflation, but will disconnect it from the unemployment aid,” the Government said in the letter.

People close to the matter told MEDIAFAX the Government is no longer tying unemployment aid to the minimum wage to limit expenses from the unemployment budget, considering a new wave of public sector layoffs is planned for next year.

Contacted by MEDIAFAX, Labor Ministry state secretary Valentin Mocanu only said the Government is currently working to set different criteria to calculate unemployment aid.

Romania’s National Prognosis Commission sees the jobless rate at 8% by the end of the year and expects the rate to drop slightly to 7.8% in 2011.