Romania’s gross minimum wage increases to RON 1,450

The gross minimum salary in Romania increases from RON 1,250 to RON 1,450 (EUR 322) starting today. About 2.1 million employees will benefit from this measure, 300,000 of whom work in the public sector. The net salary will actually increase by about RON 150 (EUR 33), to RON 1,065 (EUR 237) while the state will also collect RON 105 (EUR 23) more taxes for each such salary. The new gross minimum wage applies to a full-time work schedule with an average 166 work hours per month. This means that the minimum wage per hour is some RON 8.7 (EUR 1.9). Concluding an individual work contract with a salary lower than this represents a contravention and is sanctioned with a fine ranging between EUR 66 and EUR 444. The previous increase took place in May 2016, when the gross minimum wage rose on RON 1,250. In the last seven years, the gross minimum wage increased from RON 600 to RON 1,450, but Romania remains among the EU countries with the lowest minimum wage. It exceeds Bulgaria, but it is still under the level of other former Communist countries. In the EU, monthly minimum wages varied widely, from EUR 215 in Bulgaria to EUR 1,923 in Luxembourg, in July 2016. editor@romania-insider.com