This position was put forward by the Federation of Employers in the Romanian Hospitality Industry (FPIOR). The federation insists that, when discussing the minimum wage, the authorities must take into account not only the pre-tax amount but also the sum that an employee actually receives in hand.
According to the federation’s executive president, Calin Cozma, a 200 RON increase in the minimum wage generates nearly 300 RON in additional revenue for the state, reports startupcafe.ro. He considers it unfair to shift the burden of increasing people’s incomes predominantly onto businesses and workers.
FPIOR head Valentin Shoneriu believes that, first and foremost, the tax burden on low wages must be reduced. In particular, he proposed completely abolishing income tax for workers on the minimum wage.
“If the government wants to achieve a real impact, the minimum wage should not be taxed,” said Shoneriu. He emphasised, however, that such a reform must be carefully designed so as not to harm the state budget.
According to the federation’s estimates, the consequences of the new wage increase could affect around 700,000 companies. The organisation’s calculations show that if the minimum wage rises by 300 RON, the annual profit of a small business could fall to 24,700 RON, and if it rises by 500 RON, to 23,500 RON.
The debate over the minimum wage for 2027 has already extended beyond the hotel and restaurant sector. According to Agerpres, the day before, the Association of Small and Medium-sized Enterprises (IMM Romania) stated that it would seek to keep the minimum wage at its current level. Its president, Florin Jianu, believes that a 300 RON increase would raise employers’ costs by 311 RON per month, whilst employees would only receive 100 RON in hand. The remaining 212 RON would go to the state in the form of taxes and social security contributions.
The current minimum wage in Romania stands at 4,325 RON gross (809 euros) per month. Since 1 July 2026, following the latest increase, employees have been taking home 2,699 RON (505 euros).
A final decision on the level of the minimum wage for 2027 has not yet been taken. Employers are calling on the government first to review labour taxation and to hold consultations with business representatives and trade unions.
This story was translated with the assistance of artificial intelligence.The translation was also reviewed by the Logos Press editorial team.
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