The increasing of minimum income guaranteed, approved

The Government approved today a series of social measures, including increasing the minimum income by 8.5 percent.

Recipient would be over 300 thousand people, as a compensatory for increase in energy prices caused by the market liberalization.

The budgetary effort for the measure that will come into force in July is 200 million lei, given that the category of people who will receive this money expands.

The money will come right from the energy producers, who will be extra charged.

The family support allowance will increase from July the 1st, according to the decision of the executive, from 60 to 80 lei for a family with two children.

The Minister delegate for Budget, Liviu Voinea, explained that it is an increase of 30 percent, the decision being intended as a measure of protection for those socially vulnerable categories, against the gradual liberalization of energy prices and natural gas.

Increase also for meal and childcare tickets

Also from July the 1st will be increased the minimum wage by 8.5 percent, other 4.5 percent will be granted in another installment, starting next year.

"The level of the minimum income guaranteed and the allowance, implicitly more families fall into this category, is the first criterion. Also, there is a list - and this has not been taken into account yet, so the beneficiaries’ level will further increase in the coming months.

"There is a list of assets, which, if you have, you do not qualify to receive these benefits. Some of these assets are highly restrictive, they are common-sense things to have a TV or to have a square meter at the countryside and then you do not receive. And then by removing the list of assets, which basically disqualifies you from receiving the aid, the number of beneficiaries increases", said Liviu Voinea.

He also said that the impact of these measures does not adversely affect the budget.
Although the measures adopted by the executive were recently announced by the prime minister, the opposition, through the voice of PDL president, Vasile Blaga, believes that the increase in the minimum income of 13 percent is only dust thrown in the eyes of Romanians, being too little, given the declining of purchasing power thereof.

Also on Wednesday, the Ministry of Labor announced that has approved an increase in the value of meal tickets, from 9 to 9.35 lei, and the value of childcare vouchers from 400 to 420 lei.

From childcare vouchers also benefit employees who have children and decide to return to work without leave the parental allowance for raising the child up to two years.

The two orders will come into force once with their publication in the Official Gazette.

Translated by Alexandra-Diana Mircea
MTTLC, Bucharest University