Romanian Govt., social partners reach agreement on minimum statutory wage

The Government and the social partners – trade unions and employers' organisations – have agreed that the gross minimum wage will increase starting from January 1, 2023, to RON 3,000, of which RON 200 will be exempt from taxes and social security contributions. The minimum wage in construction will increase to RON 4,000.

Since January 1, 2022, the minimum gross salary in Romania has been RON 2,550 – except for the sector of construction, where it has been RON 3,000 since 2019.

Not all social partners agreed with the Government's decision – seen as discriminatory for the preferential minimum age given to constructors and for the awkward effects of the RON 200 tax-free amount given to that paid minimum wage (but not to those paid marginally more).

"We do not consider it productive that in Romania, there are several types of minimum wages and all kinds of thresholds that only complicate things, and the Government's proposal, as it appears, will compress the workforce in the minimum wage area," said the director executive of the Concordia Employers' Confederation, Radu Burnete, according to Economica.net.

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