European minimum wage in Romania
In Romania, the minimum gross salary at national level will go up to 4050 lei, starting next year
Mihai Pelin, 15.11.2024, 14:00
The law on the introduction of the European minimum wage in Romania was promulgated by President Klaus Iohannis. Prime Minister Marcel Ciolacu has stated that, in this way, the final step can be taken towards increasing the minimum wage to 4,050 lei (approx. 810 euros) as of January 1, 2025. He assured that there are no obstacles, neither electoral nor of any other nature, in the way of this decision. “The legislative act is transparent, everyone has seen it and has spoken about it. That’s why we will go through the necessary procedure to have it quickly approved, to make the technical adjustments as well”, the Prime Minister stressed.
The decision to increase the gross minimum wage was taken in the Tripartite National Council, which brings together the Government, employers and unions. The new law has as its regulatory object the transposition into national legislation of the provisions of a Directive of the European Parliament (2022/2041) regarding adequate minimum wages in the EU. This aims to improve working and living conditions, including through adequate minimum wages and an effective collective bargaining framework to support the evolution of wages.
According to the law, the gross minimum basic salary per country guaranteed in payment established by Government decision can be granted to an employee for a maximum period of 24 months from the date of conclusion of the individual employment contract. “With the adoption of this law, we will ensure a better protection of workers in Romania. The increase in wages is a step forward for better-paid jobs, but also for greater economic and social stability. By applying this law, we aim to reduce poverty and protect the purchasing power. It is a commitment we have made to leave no one behind and to improve working and living conditions”, said the Minister of Labor and Social Solidarity, Simona Bucura Oprescu, in a post on social media. An increase to 4,050 lei would mean that Romania will reach about 47% of the European minimum wage.
Currently, the basic minimum gross salary is set at 3,700 lei per month (approx. 740 euros), for a full work schedule of 168 hours, on average per month, representing 22,024 lei/hour (approx. 4.4 euros). According to official figures, in Romania, over 843,000 employees currently benefit from the minimum gross salary guaranteed in payment, which represents a percentage of 15.5% of the total number of active employees.
The increase in the gross minimum wage has an impact on the private environment, because it leads to an increase in spending. Most state institutions do not have employees working on the minimum wage, which means they do not want additional expenses. The government gains from this measure, because higher wages mean higher taxes and contributions to the health and pension budgets. In the EU, there are historical disagreements between member states on the minimum wage, due to different national pay-setting systems. According to Eurostat, in the summer, these incomes ranged from 477 euros/month in Bulgaria (the lowest level), to 2,571 euros/month in Luxembourg. (MI)
