Moldova minimum wage still below poverty line
Trade unions in Moldova have rejected the Ministry of Labor and Social Protection’s proposal to increase the national minimum wage from 5,500 to 6,300 Moldovan Lei (MDL) for 2026.
The National Trade Union Confederation of Moldova (CNSM) argues that the proposed sum does not even cover the minimum living wage for a worker supporting one child and is demanding a minimum wage of at least 7,800 MDL.
According to CNSM’s calculations, the government's proposal fails to cover the necessary minimum to avoid poverty and does not ensure a decent living. The Confederation had previously suggested that the minimum wage should represent 50% of the forecasted average national salary, which would amount to 8,050 MDL.
The unions point out that the minimum wage's share of the average salary is decreasing: in 2024 it was 42.7% of the national average, and by 2026, it would drop to 39.1% if set at 6,300 MDL.
"Employees must not be exposed to this poverty phenomenon. A minimum wage must ensure at least the minimum living wage for an employee with one child to support. For the first half of the current year, this indicator was 6,288 MDL net, but if we consider all taxes, the minimum wage must be at least 7,852 MDL to ensure the minimum living wage," explained Polina Fisticanu, Head of the Social and Economic Protection Department at CNSM, during the "Spațiul Public" show on Radio Moldova.
Official data indicates that the poverty line in the Republic of Moldova is 6,294 MDL. Under the current taxation regime, the gross minimum wage required to cover this level would be approximately 7,860 MDL. The issue of low wages also directly impacts the pension system. Individuals who received the minimum wage throughout their working lives end up with pensions below the state-established minimum level, necessitating consistent top-ups from the state budget.
"If we analyze the pension an employee who received the minimum wage throughout their life might have, we find it is below the minimum pension level established nationally," Fisticanu specified.
This year, the state transferred an additional 530 MDL monthly for every pensioner whose benefit was calculated based on the minimum wage, and 2.5 billion MDL in supplementary allocations are budgeted for 2025 solely to cover the difference up to the minimum pension.
Employers Warn: 8,050 MDL Minimum Wage Could Bankrupt Numerous Enterprises
During the same broadcast, guests drew attention to vulnerable sectors where a significant minimum wage increase could put considerable pressure on companies.
"We have agriculture, which is quite vulnerable, (...) retail, HoReCa," enumerated Vladislav Caminschi, Executive Director of the National Employers' Confederation of Moldova.
Trade union representatives also cite a sharp deterioration in living standards. While in 2019, one in four people was considered poor, this proportion has risen to one in three in 2024. The unions also criticize the way the government determined the new minimum wage, believing it does not reflect social realities. "We do not support this increase. It is not that it is bad, but it is not sufficient. And, accordingly, we came with certain arguments. We believe that this minimum wage was estimated based on the state budget's possibilities, but, in our view, the minimum wage must cover the minimum decent living wage for a person," added Fisticanu.
Currently, approximately 5% of employees in R. Moldova are paid the national minimum wage. Unions further warn that wage levels in R. Moldova remain the lowest in Europe, and the process of accession to the European Union requires significant adjustments.
"The minimum and average wages in R. Moldova are the last in the European ranking. (...) In this accession process, we will also have certain obligations. There needs to be a very constructive approach, because we are seeing this migration (...) from rural to urban areas, (...) but, at the same time, we also have an emigration of highly qualified specialists," the CNSM representative further stated.
Employers insist that long-term economic development remains the solution.
"The economy. If we have better growth, we will have better wages," stated Vladislav Caminschi.
Although the 15% minimum wage increase represents a step forward, the new amount of 6,300 MDL remains below the minimum living wage calculated for a worker supporting one child. Trade unions warn that the minimum wage's proportion relative to the average salary continues to decline, which amplifies the risk of poverty for low-income employees. Furthermore, reduced wages are reflected in below-minimum pensions, forcing the state to cover the differences from the budget.
Translation by Iurie Tataru
