A Brief Analysis on the Dynamic Effects of the Minimum Wage on the Economy in Romania

Abstract

In view of the EU Council's requirements regarding the adequacy of legal minimum wages in order to ensure decent working and living conditions for European employees, this paper aims to analyze the evolution of the minimum wage in Romania and its motivational role in Romania. Although the Romanian government has substantially increased the minimum wage in order to help low-income workers, this increase has not exceeded the rapid growing pace of inflation, which has resulted in low living standards and purchasing power for the disadvantaged, as there are no other financial instruments to increase the income of the disadvantaged.

Keywords

• remuneration
• payroll
• personnel
• salary
• minimum wage