Starting from 1 January 2024, the minimum wage in the country will be 5,000 lei per month, which represents an increase of 25% compared to the minimum wage in the country set for 2023. A decision to this effect was approved on Wednesday, 6 December 2023 by the Moldovan Government.

This result was achieved following the repeated insistence by the National Trade Union Confederation of Moldova. Throughout the year, trade unions have made a number of representations to the Government and the National Confederation of Employers of the Republic of Moldova to initiate talks on raising the minimum wage.

Since June 2023, almost every meeting within the National Commission for Consultations and Collective Bargaining addressed different options for raising the minimum wage, with the trade unions stressing the need to raise the minimum wage in accordance with the provisions of the Directive of the European Parliament and of the Council of the European Union on adequate minimum wages in the European Union, which stipulates that the minimum wage in each country must be at least 50% of the average wage. In the case of the Republic of Moldova, the reference of 50% of the average wage forecast for 2023 – 11700 lei, would result in a minimum wage of 5850 lei.

Although the average wage in the economy in 2022 increased by 15.5% compared to 2021, in real terms it decreased by 10.3%. Even in the first half of this year, this trend continues, with the average monthly wage decreasing by 1.3%: in the budgetary sphere by 1.6% and in the real sector of the economy by 1.3%. According to statistical data for September 2022, about 1/3 of employees in the national economy had a salary below 6000 lei, and 12% of employees received a salary up to 4000 lei, of which 17% were in the budgetary sector.

CNSM representatives presented several arguments in favour of increasing the minimum wage in the country: the unfavourable social and economic situation in the country, due to the high level of inflation (30.2% achieved in 2022) and the reduction in the real value of wages (by 10.3% over the given period), as well as the need for the minimum wage in the country to ensure at least the basic needs of employees and to allow the realization of the right to a minimum old-age pension without the need to compensate from the state budget the difference up to the minimum pension.

Also, on October 6, in the context of the World Day for Decent Work, the National Trade Union Confederation of Moldova organized a round table on “Minimum Wage according to European Standards”, with the participation of representatives of the Government of the Republic of Moldova, the National Confederation of Employers of Moldova, the International Labour Organization, the National Trade Union Confederation “CARTEL ALFA” of Romania, where comprehensive arguments were presented on the need to increase the minimum wage in the Republic of Moldova.

In addition, it worth pointing out that during 2023 the CNSM leadership had meetings and negotiations with the leadership of the Ministry of Labour and Social Protection, the Ministry of Finance, regarding the establishment of a minimum wage that would contribute to solving several problems in the field of wages and social-economic protection.

According to the information note to the draft government decision “On setting the amount of the minimum wage in the country for the year 2024”, the amount of the minimum wage in the country, set at 5000 lei, is justified by the need to ensure a continuous increase in minimum wage guarantees in order to maintain the purchasing power of employees and to ensure a fair competitive environment at regional and international level in terms of the use of labour.

The minimum wage is the minimum wage in lei set by the state for simple, unskilled work, below which the employer is not entitled to pay for the monthly or hourly work performed by the employee. It is important to note that maintaining the minimum wage is compulsory for all economic agents, regardless of the type of ownership and legal form of organisation. This amount may not be reduced either by collective or individual employment contracts.

Pursuant to the provisions of Law No 1432/2000 on the method of setting and reviewing the minimum wage, the minimum monthly wage and the minimum hourly wage calculated on the basis of the monthly working time norm are set by Government decision, after consultation with the National Trade Union Confederation of Moldova and the National Confederation of Employers of the Republic of Moldova, and are reviewed at least once a year.

The CNSM will continue to make every effort to negotiate and set the amount of the minimum wage in the country in accordance with the provisions of the Directive of the European Parliament and of the Council of the EU on Adequate Minimum Wages in the European Union.