The minimum gross salary was modified

Due to some changes in the legislation, the minimum gross salary was increased on national level to 540 lei, starting with the 1st of October 2008, accordingly to legal provision no. 1051/10.09.2008. The change will be valid until the 31st of December 2008. Starting with 1st January 2009 the minimum gross salary will increase from 540 Lei to 600 Lei per month.

The amount of 540 Lei is established for 170 hours per week representing 3, 16 lei/hour. In case employees’ salaries are registered below the Romanian minimum gross salary, this is considered to be illegal and is penalized with fees between 1000 – 2000 lei.

In Romania, the minimum gross salary for the period between October and December 2008 will be 540 Lei for unqualified workers, 648 Lei for qualified workers and 1080 Lei for employees who graduated college.

Starting this Monday the President of Romania, Mr. Traian Basescu, promulgated the Law regarding updates of the first paragraph of article 134 from Law no 53/2003 – Labour Code.

Employees will benefit of 3 additional days of leave (excepting those already stipulated). These days will be: first and second day after the Whitsun (the Whitsun is celebrated on Sunday, 50 days after Easter) and the 15th of August, when is celebrated the Assumption of the Blessed Virgin.

Few of us truly understand what the importance of working in a team is. How can we be efficient working in a team and why working together? One of the apparently insignificant aspects would be the need to have a strong motivation from each team member in order to wish and determine to involve itself and to work within a team.

A strong motivation for some people would be either a higher wage or a raise. Each of us has different motivations but for co-working in a team there must be a final purpose, a common gain, even though individual motivations are different.

According to the state social insurance law for the year 2008, no. 387/2007, contribution rates will change from the months of December this year. The new rates of contribution are as follows:

Parafiscal taxes in Romania were finally reduced. The last “census”, prepared by the World Bank regarding parafiscalty, put Romania on first place in Europe, with a total of 385 parafiscal laws and 278 parafiscal taxes. The number has reduced to 115 at present, after the exclusion from this segment of charges related to both the public domain, as well as the private. The charges that were reduces include incomes from rents, specifications for tenders, but also charges for PhD’s within public and private universities.

Nevertheless, Romania is still among the countries with an excessive parafiscality, the government announcing other measures for the reduction of these fees.

Jordan Sheppard has recently taken part in the renowned International Language Recruitment Fair, in London. The event is known as the biggest and also the most exciting event of its kind and brought together numerous top companies and over 10 000 multilingual professionals. Jordan Sheppard was present at this event trying to identify talented headhunters for its growing international team. Jordan Sheppard is an elite company in the field of human resources services, mainly executive search, who also operates in Romania, through the office opened in Bucharest in November 2007.

The summer just passed by, and we all prepare to enter in the autumn.

Autumn always inspires me a few words: plenty, wisdom, fulfillment… Still autumn means the beginning of the school, electoral campaigns, but also the main trends in the economy, those who we will give guidance for the upcoming year.

Therefore, let’s go to review what happened in the end of this summer, but also the main trends revealed by the beginning of the autumn.

Good news comes from the Ministry of Economy, who announce a record of the transitional period, namely: “Romania’s economy grew by 8.6% in the first half of 2008, while the advance of the gross domestic product in the second quarter of the year was almost 9%”.

Why “Bermuda Triangle”? Due to the fact the entire recruitment process is based mainly on working with people. And knowing that we, as human nature, are so unpredictable, here is how a sinuous relation has been created among: candidate – recruiter – client. Since I have been working in this area have heard, seen and lived all kind of both pleasant and less pleasant experiences.

Unfortunately, at the present time many of us realize in a small percentage or at all what our roles in this equation are. From my own experience I can tell you that the recruiter has the toughest role. This one is the “lever” between candidate and employer. Depending on its successes or failures this one could be either congratulated or insulted. This one is responsible for everything that is going on during the entire recruitment process as well as afterwards, during follow-up phase. This one is responsible when a client or candidate is unsatisfied by the choice they made.

Starting with September 2008 Reliana Groza became the coordinator of the legal department of Ascent Group in Arad.

Reliana graduated the Law Faculty within the Western University of Timisoara and a Maser program in Civil Law and Civil Procedure within the Law Faculty of “Vasile Goldiş” University from Arad.

Reliana’s professional experience includes 5 years in legal advising, mainly as legal consultant and arbitral assistant, respectively as coordinator of the legal department of the Commerce Chamber form Arad. Reliana’s experience mainly includes information and documentary activities for legal entities, legal consulting for business start-up’s, respectively commercial arbitration for companies having commercial litigations.

In August the Ministry of Labour has launched for public debate the draft of the Government decision which provides the increase of the minimum guaranteed gross wage to 8% from the 1st of October 2008 and 11% from the 1st of January 2009. According to the draft of the resolution, the minimum gross wage guaranteed will be 540 lei per month, between the 1st of October – 31st of December 2008, for a full time working schedule of 170 hours per month, in average, representing a value of 3.176 lei/hour.

Starting with August 2008 the project team of Ascent Group has a new coordinator, Elena Manera.

Elena graduated the National School of Political and Administrative Sciences “David Ogilvy” – The Faculty of Communication and Public Relations, with a degree in Human Resources Management. She is also an Italian language authorized translator by the Ministry of Justice.

The annual inflation rate, targeted by the National Bank increased in July this year to a peak of the last three years, 9.04%, compared with 8.61% in June and 8.46% in May. At the beginning of August the National Bank of Romania also increased the inflation forecast for the end of 2008, from 6% to 6.6%. Initially the proposed target of the National Bank for the inflation in 2008 was 3.8% plus or minus one percentage.

Accordingly to a Government decision project, that was deposited for public debate and also published on the website of the Ministry for SME’s, Commerce and Tourism, the tax for updating the activities of the companies (the re-codification) will be abolished.

The Minister Ovidiu Silaghi also declared that the companies who already paid the taxes will not get the money back since the law is not applicable retroactively.

Direct foreign investments in Romania increased in the first month of 2008 with 76.4% in comparison to January 2007, totalizing 695 million euros, according to the information published by the Central Bank.

The participations at the capital and the reinvested profit represented 45.2% from the direct foreign investments, while the intra-group loans represented 54.8%.

Direct foreign investments in Romania diminished in 2007 with 22.3%, comprising a total of 7069 thousand million euros, respectively these ones covered the deficit of the balance of payment in proportion of 41.9%.

At the entire economical level, the rhythm of growth of the work productivity exceeded for the first time in 2007 that of the income (22.6%), as shown in the information provided this month by the National Institute of Statistics.

The NIS‘ data points out that between 2002 and 2006, the work productivity increased faster than the wages, related to the levels registered in the last years.