Romania's entry into the Schengen area will bring with it 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. With the opening of the country's borders, the conditions offered by Romanian employers will compete with the standards offered by more developed European countries.
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.Bringing working conditions into line with European standards is a normality that Romanian employers must be aware of. I am talking about Equivalence of wages offered to foreign workers with those in the European Union, similar working conditions, rest, overtime pay, and 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, i.e. 3300 lei, and are left with about 2000 lei after taxes. A further increase is expected from July 1, 2024. The minimum wage will rise to 3,700 lei gross, or about 2,300 lei net.
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.
"At the moment the wages offered by Romanian employers for unskilled workers start from 500-600 euro net income, continue around 600-700 euro net income for semi-skilled workers, while for foreign skilled workers, an entrepreneur pays around 700-800 euro 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 the one in 2023, with the main countries of origin for foreign workers being Asian countries, in particular Nepal, Philippines, India, Bangladesh and Sri Lanka.
