03.12.2020

Employee financial participation: European models and Romanian realities

It is already a truism to say that in Romania work is poorly paid and that the gap between labor and capital is much larger than in Europe.

It is already a truism to say that in Romania work is poorly paid and that the gap between labor and capital is much larger than in Europe. In order to remedy this situation, in-depth fiscal, administrative and economic reforms are required. But pay can be greatly improved by increasing employee financial participation, a practice widespread in Europe and supported by the European institutions. The concept of financial participation of employees refers to the practice of giving them in addition to salary, the right to benefit from a variable component of the company's profits. Employee financial participation can help reduce high inequality in Romania and could compensate to some extent the negative effects of weakened collective bargaining that occurred over the past decade.

The Friedrich-Ebert-Stiftung Romania and the Institute for Social Solidarity has launched on this topic the report “Employee financial participation: European models and Romanian realities”, author Cornel Ban. The report analyzes the opportunity of introducing legislative provisions to increase the financial participation of employees in Romania. Based on the experience of some European countries, the report made a series of proposals and recommendations for establishing a financial participation schemes for employees in Romania.

For more information the publication can be found here in English and Romanian:

Friedrich-Ebert-Stiftung
Romania Office

Str. Emanoil Porumbaru 21
Apartment 3
RO-011421 Bucuresti Sector 1
Romania

0040 21 211 09 82
0040 21 210 71 91

office.romania(at)fes.de

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