Minimum wage in the private sector

Article 34 of the current Labour Law no. 12 for the year 2003 states that a national wages council should be formed which would specialise in deciding upon a national minimum wage, while considering living expenses and ensuring equilibrium between wages and prices. This council also would also specialise in determining the minimum rate of annual raises, at a rate of no less than 7% of the main wages used to calculate social insurance subscriptions.

Supporters of minimum wages in the private sector see it as form of guarantee for workers' rights, particularly in light of the rise in prices of main commodities which have gone up 22% in comparison to last year according to the Central Agency for Public Mobilisation and Statistics.

Those opposed to setting a minimum wage in the private sector believe that its application will have negative consequences on private business owners caught between fulfilling minimum wage requirements and pushing factory production to what it was before Jan 25. This viewpoint states that there are already quite a few obligations and burdens on business owners, starting with percentages collected for social insurance. They hold that if the minimum wage was applied currently to the private sector, it may cause business owners seeking a balance in production costs to lay off a large number of employees, causing an increase in the rate of unemployment.