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Increase of Minimum Salary in Romania

Starting 1 January 2019, the minimum gross salary in Romania will increase to RON 2,080 (approx. EUR 430), while the minimum gross salary for employees who have graduated from university studies and who have at least one (1) year of work experience in the field of their studies will be set at RON 2,350 (approx. EUR 490).

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(1) Governmental Decision no. 937/2018 provides for an increase in the minimum gross salary in Romania, which is differentiated based upon professional experience and university studies, starting 1 January 2019. Specifically, the minimum gross salary will increase to RON 2,080 (approx. EUR 430), while the minimum gross salary for employees who have graduated from university studies and who have at least one (1) year of work experience in the field of their studies will be set at RON 2,350 (approx. EUR 490).



(2) According to a publication of statistical data by the Labor Ministry [1], on 30 November 2018 there were 5,577,810 active employees in Romania. Pursuant to a different study published in July 2018 [2], almost half of the individuals employed in Romania are paid on the basis of minimum gross salaries.


(3) A study published by Adecco Research [3]  in September 2018 reflects that almost 19% of the employers in Romania budget their expenses based upon a minimum wage of RON 1,900. Considering the preponderance of minimum wage employees in Romania, the current increase of the gross minimum salary will most likely impact companies' 2019 budgets.


(4) The minimum salary already increased from RON 1,450 to RON 1,800 just in January 2018. According to statements, the Government's plan is to increase the minimum salary by RON 150 (approx. EUR 30) every year until 2021.


(5) A study published by the European Commission in July 2018 [4] shows that the following amounts apply at the European level in terms of minimum salary (comparison between July 2008 and July 2018). Given the anticipated increases in the minimum gross salary in Romania starting from 1 January 2019, Romania will likely lose some of its competitive salary advantages in the EU:
 

 

[1] http://www.mmuncii.ro/j33/index.php/ro/transparenta/statistici/date-statistice

[2] http://www.economica.net/aproape-jumatate-dintre-angajatii-din-romania-castiga-salariul-minim-studiu_155710.html

[3] https://www.adecco.ro/salariu-minim-2019-sondaj-bugete-hr/

[4] https://ec.europa.eu/eurostat/statistics-explained/index.php?title=File:Minimum_wages,_July_2008_and_July_2018_(EUR_per_month_and_%25).png

For further information please contact

Ileana Glodeanu
Ileana
Glodeanu
Partner
Romania
Andreea Stan
Andreea
Stan
Associate
Romania

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