Romania's entry into the Schengen area will bring about a number of changes in the economic landscape, but it is the labor market that will undergo significant changes in terms of the current working conditions of foreign workers, according to Work From Asia, a report by the agency Work From Asia. With the opening of the country's borders, the conditions offered by employers here will compete with the standards offered by more developed European countries, according to the source.
The Work From Asia Agency, specialized in recruiting and placing foreign staff in Romania, believes that it is necessary to align the working conditions offered to foreign workers to European standards, according to the source quoted: ''Aligning working conditions to European standards is a normality that Romanian employers should be aware of. I am talking here about the equivalence of salaries offered to foreign workers with those in the European Union, about similar working conditions, rest, overtime pay, as well as ensuring better accommodation and food," said Yosef Gavriel Peisakh, general manager of Work From Asia.
Currently, in Romania, about 1.5 million employees are paid the minimum wage on the economy, i.e. 3,300 lei, and are left with about 2,000 lei after taxes, from July 1, 2024, a new increase is expected, the agency reports. This is an increase in the minimum wage on the economy to 3700 lei gross, or about 2300 lei net, the source added.
Despite the fact that foreign employees receive more than the minimum wage, in the context of Romania's entry into the Schengen area, it is necessary to increase the salaries paid by Romanian employers to workers from non-EU countries in order to keep foreign staff interested in the local labor market, the communiqué said.
According to the source, "At the moment, the wages offered by Romanian employers for unskilled workers start from 500-600 euros net income, continue around 600-700 euros net income for semi-skilled workers, while for foreign skilled workers, an entrepreneur pays about 700-800 euros net income. This reality needs to change so that wages increase to a minimum of €800 net income for unskilled and exponentially for the rest. Skilled workers should be paid at least €1200-1300 net income", added Yosef Gavriel Peisakh.
In Romania, a quota of 100,000 foreign workers has been approved for the current year, similar to that of 2023, with the main countries of origin for foreign workers being Asian countries, in particular Nepal, the Philippines, India, Bangladesh and Sri Lanka, the source said.
