Minimum Wage in Romania
Minimum Wage in RomaniaUpdated on Wednesday 15th June 2016
Starting from May 1st, 2016, the minimum wage in Romania is established at 1250 Lei per month. Along with article 164 of the Labour Code, the national minimum wage matches to the normal work schedule.
In article 112 of the same Labour Code it is written that the normal working time for full-time personnel is of 8 hours per day and 40 hours per week.
According to Romania’s Government Decision the minimum wage is planned for 169,3 average working hours per month.
Our accounting firm in Romania can offer proper assistance and guidance regarding the minimum wage in Romania and the related salary taxes, according to the rules of the country.
The minimum wage in Romania is defined as all the income in cash and / or in kind made by a natural person running an activity under an individual contract or a statute definitely provided by law.
Increasing minimum wage in Romania in two stages
As a reminder, in 2015 the minimum wage in Romania has gone through two stages of growth. In 1st of January 2015, the salary became RON 975 and on 1st of July 2015 the minimum wage has reached RON 1,050.
Compared to 2015, starting May 1st, 2016 the guaranteed minimum gross salary in Romania increased by about 19%, so the net monthly salary of an employee who has no dependents is now at RON 917.
The beneficiaries of the increased minimum wage in Romania are about 1.131.600 employees, out of which 39.322 employees in the public sector.
Employer’s fees to guarantee minimum wage of RON 1.250
Giving a minimum wage of RON 975 assumes a RON 1,199 amount by the employer. The employee will have about RON 724 net salary.
Giving a minimum wage of RON 1050 assumes a RON 1.289 amount by the employer. The employee will obtain about RON 776 net salary.
Giving a minimum wage of RON 1250 assumes a RON 1.532 amount by the employer. The employee will have about RON 917 net salary.
For every minimum wage salary adjustment there also changes in:
• the calculation contribution for work accidents and occupational diseases with medical leave;
• the calculation contribution holidays and health insurance benefits;
• the calculation of contributions for uncategorized disabled persons;
• the calculation elements comparative to wage base salary.
Please feel free to contact our team of accountants in Romania if you need extra information about the minimum wage in the country.