PM Viorica Dancila promises EUR 500 net minimum wage and cutting employers’ taxes in construction sector

Newsroom 29/11/2018 | 12:39

At a solemn meeting of the government in Alba Iulia, PM Viorica Dancila launched a series of promises for the construction sector, including a net minimum wage exceeding EUR 500 and the elimination of some taxes for employers.

The PM said that a ten-year memorandum would be signed with the employers. Moreover, together with the net minimum wage above EUR 500, she pledged to establish an 80 percent state guarantee fund for construction. It should be noted that a memorandum does not have the value of a normative act and it would not necessarily have to be enforced.

”We will declare this sector a priority for the Romanian economy for the next 10 years. For the construction sector we will set a minimum monthly gross salary of RON 3,000, we will eliminate the labor taxes for employers and employees’ taxes will be fixed so that the minimum net monthly salary to exceed the equivalent of EUR 500. We will introduce further measures to discourage working off the books in this sector,” Dancila said.

The PM also spoke about the obligation to provide a 30 percent advance for works and the establishment of a guarantee fund.

”Another measure would be to introduce an obligation to advance 30 percent for construction work contracts irrespective of the source of financing and to return it by means of percentage reductions for each invoice until the project is completed. We will also set up a construction guarantee fund with 80 percent state ownership and 20 percent from construction companies,” Dancila stated.

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