Romania pays the lowest minimum wage in Europe

Reporter.gr ^ | Aug. 22, 2005 | ACT News Agency

[FairOpinion]

In a classification of EU members and hopefuls by the minimum wage paid per economy in January 2005, Romania stands at the end of the list with 72 euros, after Bulgaria, which reported 77 euros – reads a recent study of the EU institute for statistics Eurostat.

Covering the month of January 2003, 2004 and 2005, the report places Romania last in 2004 too, with 69 euros, after it had been last but one in 2003, with 73 euros (ahead of Bulgaria, with 51 euros). In January 2005, Hungary paid a minimum wage of 232 euros whereas Poland paid 205 euros. This parameter had a sinuous evolution in both states, sliding from 212 euros in 2003 to 189 euros in 2004 (Hungary), respectively from 201 euros to 177 euros (Poland). In the Eurostat classification, Luxembourg holds the leading position with a minimum monthly wage of 1,467 euros in January 2005. Second and third came The Netherlands with 1,265 euros, respectively Belgium with 1,210 euros. Early this year, both France and the UK were paying a similar minimum wage of 1,197 euros. Of the EU members, Latvia registered the lowest pay with 116 euros, whereas Lithuania ranked last but one with 145 euros.

After applying the purchasing power parity – that is after removing the effect of price differences – Romania was still last in the January 2005 classification, with 219 euros, after Bulgaria (registered with a minimum wage of 232 euros). Of the states with the highest wages, Luxembourg ranked first with 1,293 euros, followed by Belgium with 1,211 euros and The Netherlands with 1,202 euros. Latvia was the last of EU members with a minimum wage of 283 euros, whereas Lithuania was last but one with 327 euros.

[FairOpinion]

There are huge differences in minimum wage among E. European countries, it will probably take years for it to even out. And West Europe is way way ahead. This is what communism does to countries, it destroys their economy, from which it takes very long to recover.

[FairOpinion]

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[lizol]

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[ClaireSolt]

How do they quote it? Is it 1200/mo?

[Jaysun]

After applying the purchasing power parity – that is after removing the effect of price differences

This renders the study worthless in my opinion. Price differences are real and they effect living standards.

[68skylark]

I think the article gives the minimum wages in straight euros first (with Romania at 72). And second they give the minimum wages after an adjustment for different purchasing power in different countries (with Romania at 219). As you say, "price differences are real and the effect living standards," so the second set of figures is probably the most realistic way to compare living standards of those making the minimum wage. Looks like a good study to me.

[68skylark]

How do they quote it? Is it 1200/mo?

I wondered the same thing. I'd guess the figures are weekly, not monthly, but I don't know.

[68skylark]

This is what communism does to countries, it destroys their economy, from which it takes very long to recover.

That's very true. I don't know how you feel about minimum wage figures -- personally I'm not a fan of minimum wage laws, especially if the minimum is so high it causes real problems. A free market, without government intrusion, is the best way to prosperity. Maybe Romania is smart to keep their minimum wage low.

[FairOpinion]

I don't think these are minimum wages mandated by law, I think these are minimum wages they found by surveys.

[FairOpinion]

They are MONTHLY.

"the minimum wage paid per economy in January 2005"

[Sometimes A River]

Germany doesn't even have a Minimum wage for those outside the masonry trade.

[Quinotto]

Actually, what's not taken into consideration is the fact that 2 months ago Romania has a revamping of their currency and things are still a bit confusing there. I don't give much heed to the report.

[68skylark]

I don't think these are minimum wages mandated by law, I think these are minimum wages they found by surveys.

Interesting. The term "minimum wage" in the U.S. means the minimum salary that's allowed by law. But as you say, I guess the term could mean something else in other countries.

[QQQQQ]

From the article: "minimum wage paid per economy in January 2005"

The survey was done before Romania revalued their currency. And there was no currency reevaluation in the other countries. Looks like a thourough survey.

They compared the minimum wages in euros, but then they also did it where they took into account the buying power. That's a pretty complete assessment.

And it is quite eye opening to see the differences among the E. European countries, and differences from those to the West European ones.

[Quinotto]

If there is one thing I have learned about Eastern European countries and their economical troubles is the inconsistency, the corruption, the false claims and statements due to decades of communism mind-washing. I am neither denying or confirming the above report, I am just having doubts about the validity and if the corrected data was given to the researchers. There's too much economical chaos there.