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Romania: National Minimum Wage Increase

Romania: National Minimum Wage Increase

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On 13 January 2021, new provisions regarding the minimum gross salary guaranteed at national level were announced in the Romanian Official Gazette.

Government Decision no. 4/2021 on establishing a minimum gross salary guaranteed at national level (“GD 4/2021”) will increase the minimum gross monthly salary from RON 2,230 (approx. EUR 457) to RON 2,300 (approx. EUR 470) for an average monthly full-time schedule of 169.333 hours, not including bonuses or other additional payments. The corresponding minimum gross hourly amount is RON 13.583 (approx. EUR 2.78).

The provisions regarding the minimum gross salary for employees with at least one year of experience in a field requiring higher education remain the same. For such employees, the minimum gross monthly salary guaranteed at national level is RON 2,350 (approx. EUR 482) for an average monthly full-time schedule of 169.333 hours, not including bonuses or other additional payments.

According to the Romanian Labour Code, employers who pay a lower minimum gross base salary are to be sanctioned with administrative fines ranging from RON 300 (approx. EUR 62) to RON 2,000 (approx. EUR 411). Repeated violation of the minimum gross salary law constitutes a criminal offence.

The above-mentioned changes became effective on 13 January 2021, meaning that, as of that date, salaries will have to be adjusted for the remainder of the month. Nevertheless, the Government has published a decision stating its intention to amend GD 4/2021 to make the increase in the minimum wage applicable as of 1 January. However, this amendment has not yet been adopted.

By Mircea-Catalin Roman, Senior Associate, and Flavia Denisa Margas, Associate, Noerr

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