Romania: Increase of national minimum wage
On 5 October 2021, new provisions regarding the minimum gross salary guaranteed at national level were announced in the Romanian Official Gazette.
Government Decision no. 1071/2021 on establishing a minimum gross salary guaranteed at national level (“GD 1071/2021”) will increase the minimum gross monthly salary from RON 2,300 (approx. EUR 465) to RON 2,550 (approx. EUR 515) for an average full-time monthly schedule of 167.333 hours, not including bonuses or other additional payments. The corresponding minimum gross hourly amount is RON 15.239 (approx. EUR 3.07).
According to the Labour Code, employers who pay a lower minimum gross base salary are to be sanctioned with administrative fines ranging from RON 300 (approx. EUR 60) to RON 2,000 (approx. EUR 405). Repeated violation of the minimum gross salary law constitutes a criminal offence sanctioned with imprisonment of one month to one year or a criminal fine.
The above-mentioned changes will become effective on 1 January 2022.
Moreover, according to Emergency Ordinance no. 130/2021 regarding certain fiscal measures, extension of terms, as well as for amending and completing normative acts, the minimum gross basic salary can be applied to an employee for a maximum period of 24 months, after which a salary higher than the minimum gross basic salary should be provided. The measure is applicable also in case of employees having the minimum gross salary with individual employment contracts having a duration of more than 24 months. This amendment is effective from 18 December 2021.
Practice group: Employment & Pensions