The gross minimum wage will increase differently starting from January 1, 2019. The beginning of 2019 brings changes to the gross minimum wage across the economy, according to Government Decision No. 937/2018, published in the Official Gazette on December 10, 2018. Thus, the guaranteed gross minimum wage will be increased by almost 10%, from 1,900 lei to 2,080 lei, starting from January 1. Additionally, the wage will increase differently for employees with higher education and at least one year of experience in their field of study, with the increase being much higher, around 24%. Thus, the gross income of these employees will increase from 1,900 lei to 2,350 lei per month. The effects of these changes will be felt by employees starting in February of next year. According to the new salary grids for 2019, the hourly rate for a full-time work schedule of 167.333 hours is 12.43 lei/hour. Employers who do not comply with the new provisions risk fines ranging from 300 lei to 2,000 lei.

Gross minimum wage: constant increases over the last 7 years

After a stagnation in 2010, the gross minimum wage in the country has followed an upward trend over the last 7 years, with increases recorded each year, often in two annual installments. This has displeased some Romanian employers who have repeatedly expressed concerns about the successive waves of increases and the potential negative effects they might generate. Thus, if in 2011, the gross minimum wage was 670 lei, its value has almost tripled up to the present time.

Persons with higher education: the highest gross minimum wage among EU countries with minimum wages below 500 EUR per month

If the situation regarding guaranteed minimum incomes in neighboring countries remains as of July 2018, with the differentiated increase of the gross minimum wage, Romania will lead the rankings in terms of earnings for people with higher education.

Romania – 500 EUR/month
Estonia – 500 EUR/month
Poland – 480.2 EUR/month
Slovakia – 480 EUR/month
Croatia – 465.72 EUR/month
Hungary – 418.47 EUR/month
Lithuania – 400 EUR/month
Bulgaria – 261 EUR/month

However, if we refer to the guaranteed gross minimum wage, i.e., the 2,080 lei, Romania remains at the bottom both among neighboring countries and at the European level, ranking only above Bulgaria, Lithuania, and Hungary.