The minimum wage serves as a benchmark for many employers regarding salaries, so they must stay updated with all changes. The latest change regarding the gross minimum basic salary guaranteed in payment occurred on January 1, 2023, when it was increased by 17.6%, from 2,550 lei to 3,000 lei per month.

How the Gross Minimum Basic Salary Guaranteed in Payment is Determined

According to the Romanian Labor Code, the gross minimum basic salary guaranteed in payment, corresponding to the normal work schedule, is established by Government decision after consulting the trade unions and employers’ associations.

For 2023, the gross minimum basic salary guaranteed in payment was established through negotiation and mutual agreement among the Government, employers’ representatives, and trade unions during the National Tripartite Council meeting.

Additionally, the Government can establish an increase in the gross minimum basic salary guaranteed in payment, differentiated by criteria such as the level of education and work experience.

Employer Obligations Regarding the Minimum Wage

An employer cannot negotiate and set base salaries below the hourly gross minimum wage in the individual employment contract. They are obliged to guarantee a monthly gross salary at least equal to the gross minimum basic salary guaranteed in payment. These provisions also apply if the employee is present at work during the scheduled hours but cannot perform their duties for reasons not attributable to them, except in the case of a strike.

The employer must inform employees about the gross minimum basic salary guaranteed in payment.

Application of the Gross Minimum Basic Salary Guaranteed in Payment for a Maximum Period of 2 Years for an Employee

Starting from January 1, 2022, the gross minimum basic salary guaranteed in payment can be applied to an employee for a maximum period of 24 months from the date of signing the individual employment contract. After this period, they must be paid a base salary higher than the gross minimum basic salary guaranteed in payment.

This provision also applies to employees paid with the gross minimum basic salary guaranteed in payment who already have an individual employment contract, with the maximum 24-month period calculated from January 1, 2022.

From January 1, the Gross Minimum Basic Salary is 3,000 lei

As of the beginning of this year, the increased minimum wage has come into effect. Thus, the gross minimum basic salary guaranteed in payment, excluding bonuses and other additional payments, will be 3,000 RON per month (approximately 600 EUR) for a normal work schedule averaging 165.333 hours per month, representing 18.145 lei/hour (approximately 3.629 EUR/hour).

This change in the gross minimum basic salary guaranteed in payment represents a 17.6% increase, equivalent to 450 lei.

Automatically, with the increase in the gross minimum basic salary guaranteed in payment, the net minimum wage has also increased. Thus, a person paid the gross minimum basic salary guaranteed in payment will receive a net amount of 1,898 lei, which is 374 lei more than in 2022.

The increase in the gross minimum basic salary guaranteed in payment will benefit 2,181,134 employees.

The Minimum Wage in the Construction Sector Has Also Increased

Starting from January 1, 2023, for the construction sector, the gross minimum basic salary guaranteed in payment, excluding allowances, bonuses, and other additional payments, has been set at 4,000 lei per month for a normal work schedule averaging 165.333 hours per month, representing an average of 24.194 lei/hour.

Any Change in Salary Must Be Reported in Revisal

All employers who have changed the minimum wage were required to do so through an addendum to the individual employment contract.

The next step is for all employers who have made changes to individual employment contracts due to the increase in the gross minimum basic salary guaranteed in payment to report these changes in Revisal within 20 working days, calculated from January 1, 2023.