The minimum wage will increase by RON 50 (some EUR 11) from July 1, from the current RON 850 (EUR 194) to RON 900 (EUR 205), the second increase this year.

According to data from the Labor Ministry quoted by local Digi24, almost one million Romanians earn under RON 900 per month.

Thus, the one million employees will be paid with RON 5.35 (EUR 1.2) per hour, with RON 0.3 more.

However, based on the minimum wage, Romania comes second to last in Europe. Only neighboring Bulgaria has a lower minimum wage than Romania, of EUR 174. This is with some EUR 30 under the wage paid in Romania.

The highest minimum wage of over EUR 1,900 is paid in Luxembourg, followed by Belgium and the Netherlands.

The minimum wage increase also brings additional costs for employers. They will have to pay an extra RON 50 to each employee, and another RON 14 as contributions to the state.

Irina Popescu, irina.popescu@romania-insider.com