The People's Advocate says citizens' purchasing power has declined because of low wages and pensions. Labour Minister's statement
Due to inflation, the economic and energy crisis, the purchasing power of citizens has decreased and salaries and pensions are low, People's Advocate Ceslav Panico told Radio Moldova. According to the ombudsman, the government should do more to support pensioners, people with disabilities, single-parent families and those with several children. At the same time, Labour and Social Protection Minister Alexei Buzu said that the executive is trying to identify measures to increase salaries in the public sector. The official also pointed out that at the beginning of this year, the deficit of money for pensions was about 6 billion lei.
The problem of inflation in Moldova is influenced by the geopolitical and economic situation, People's Advocate Ceslav Panico told our radio station. According to the ombudsman, the central authorities are making efforts to increase salaries, adding that due to inflation the purchasing power of citizens has decreased.
"We have discussed this with the Minister of Labour and representatives of other state institutions. Efforts are being made to raise salaries, unfortunately not for everyone, we have seen that salaries have been raised in the ministries, probably the other state institutions will follow, but you need to find out details from government representatives. It is obvious that the purchasing power of citizens has decreased for pensioners and employees. Inflation is triggered by the economic, energy crisis. The economic crisis is not only in the Republic of Moldova, but also in European countries. The representatives of the Executive should support in this difficult period more pensioners, disabled people, single-parent families and those with several children", argued People's Advocate Ceslav Panico.
Executive representatives are trying to identify measures to increase salaries in the public sector, Labour and Social Protection Minister Alexei Buzu told Radio Moldova. The official also pointed out that at the beginning of the year, the shortfall of money for pensions was about 6 billion lei, and the institution's representatives aim to identify more people who receive salaries in envelopes.
"The ministry does not have the ability to increase salaries, they are set in negotiations between the employer and employees. The government in continuation is trying to identify measures to increase wages in the public sector. We need to make sure that there are people in the public sector who are salary motivated. In 2023 the shortfall of money for pensions was about 6 billion lei, this was covered from the state budget. This year, pensions will be paid as they should be, I just reiterated that there is a shortfall of money for pensions," said the Minister of Labour and Social Protection.
Alexei Buzu also claimed that the ministry is looking for more effective tools to identify workers who do not pay income taxes, such as applying artificial intelligence or checking the data available to the National Social Insurance House.
According to the Ministry of Labour and Social Protection, last year 190 thousand people received their salaries in envelopes. Most envelope salaries are paid in agriculture, construction and HoReCa.