Romania has third-lowest gross minimum wage in EU

Romania has the third-lowest gross minimum wage (EUR 416) in the European Union (EU) and the European Economic Area (EEA), after Bulgaria (EUR 261) and Lithuania (EUR 400), shows the most recent European minimum wage survey by KPMG Romania. Last year, Romania had the second-lowest gross minimum wage Europe. “This change in position is only due to the artificial increase in the gross minimum wage as a result of the shifting of the employer’s social security contributions to the employee. This can also be observed by looking at net amounts for 2018, as Romania is one place lower, with the second lowest net minimum wage (243 EUR), after its neighbour, Bulgaria (202 EUR),” according to KPMG. 20 of the European Union (EU) and European Economic Area (EEA) member states have a minimum wage set at national level. Luxembourg has the highest gross minimum wage (EUR 1,999), followed by Ireland (EUR 1,834) and Germany (EUR 1,818). The effective tax rate in Romania is 44%, the seventh highest compared to the effective tax rates in the 20 member states which have a minimum wage established at national level. The effective tax rates range between 15% in Ireland and 87% in France. Average net wage in Romania, up 8.7% in March versus February editor@romania-insider.com