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Romania: National Minimum Gross Base Salary Increase

Romania: National Minimum Gross Base Salary Increase

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On 16 December 2019, new provisions regarding the minimum gross salary guaranteed at national level were announced in the Romanian Official Gazette.

Government Decision no. 935/2019 on establishing a minimum gross salary guaranteed at national level will increase the minimum gross monthly salary from RON 2,080 (approx. EUR 435) to RON 2,230 (approx. EUR 447) for an average full-time schedule of 167.333 hours, not including bonuses or other additional payments. The corresponding minimum gross hourly amount is RON 13.327 (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 500) for an average full-time schedule of 167.333 hours, not including bonuses or other additional payments.

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 65) to RON 2,000 (approx. EUR 431). 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 are effective as of 1 January 2020.

By Mircea-Catalin Roman, Senior Associate, Noerr

Romanian Knowledge Partner

Țuca Zbârcea & Asociații is a full-service independent law firm, employing cross-disciplinary teams of lawyers, insolvency practitioners, tax consultants, IP counsellors, economists and staff members. It also operates a secondary law office in Cluj-Napoca (Romania), and has a ‘best-friend’ agreement with a leading law firm in the Republic of Moldova. In addition, thanks to the firm’s dedicated Foreign Desks, the team provides the full range of services to international investors seeking to gain a foothold or expand their existing operations in Romania. Since 2019, the firm and its tax arm are collaborating with Andersen Global in Romania.

Țuca Zbârcea & Asociaţii is providing legal services in every aspect of business, covering all major areas of practice: corporate and M&A; litigation and international arbitration; corporate tax; public procurement; TMT; employment; insurance; banking and finance; capital markets; competition; healthcare and pharmaceutical; energy and natural resources; environmental; intellectual property; real estate; regulatory legal services.

Țuca Zbârcea & Asociaţii is a First-Tier law firm in all international legal directories and a multiple award-winning law firm both locally and internationally. It received the CEE Deal of the Year Award (DOTY Awards 2021) and the Law Firm of the Year Award: Romania (IFLR Europe Awards 2021). 

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