๐ ๐ถ๐ป๐ถ๐บ๐๐บ ๐๐ฎ๐ด๐ฒ ๐๐ผ ๐ถ๐ป๐ฐ๐ฟ๐ฒ๐ฎ๐๐ฒ ๐๐ผ ๐ฏ,๐ณ๐ฌ๐ฌ ๐ฅ๐ข๐ก ๐ณ๐ฟ๐ผ๐บ ๐ญ๐๐ ๐ผ๐ณ ๐๐๐น๐
According to a press release issued on 8th ofย April 2024, the Ministry of Labour and Social Security announced that starting with 1st ofย July 2024, the minimum wage will increase from the current 3,300 RON gross to 3,700 RON gross.
Government representatives also pointed out that a mechanism for setting the minimum wage is currently being developed in order for Romania to align with the European Directive 2.041/2022.
This means that the level of the minimum wage will no longer be set following a negotiation between the Government and representatives of trade unions and employers, but based on a clear mechanism of calculation, which will take into account several factors (social and economic conditions, purchasing power, level of productivity and the evolution of macroeconomic indicators at national level) so that predictability exists for both employers and employees.
European Directive No 2.041/2022, should be transposed into national law by 15th of November 2024.
๐๐บ๐ฝ๐ฎ๐ฐ๐ ๐ผ๐ณ ๐๐ต๐ฒ ๐บ๐ถ๐ป๐ถ๐บ๐๐บ ๐๐ฎ๐ด๐ฒ ๐ถ๐ป๐ฐ๐ฟ๐ฒ๐ฎ๐๐ฒ – ๐ผ๐ฏ๐น๐ถ๐ด๐ฎ๐๐ถ๐ผ๐ป๐ ๐ณ๐ผ๐ฟ ๐ฐ๐ผ๐บ๐ฝ๐ฎ๐ป๐ถ๐ฒ๐
๐ญ. ๐๐ผ๐ป๐ฐ๐น๐๐ฑ๐ถ๐ป๐ด ๐ฎ๐ป ๐ฎ๐ฑ๐ฑ๐ฒ๐ป๐ฑ๐๐บ ๐๐ผ ๐๐ต๐ฒ ๐ฒ๐บ๐ฝ๐น๐ผ๐๐บ๐ฒ๐ป๐ ๐ฐ๐ผ๐ป๐๐ฟ๐ฎ๐ฐ๐๐
Any change during the performance of the individual employment contract requires the conclusion of an addendum to the contract before the change occurs. This means that if the minimum wage increases on 1st of July 2024, the formal change must be made by 31st of June 2024 at the latest.
๐ฎ. ๐ฅ๐ฒ๐ฐ๐ผ๐ฟ๐ฑ๐ถ๐ป๐ด ๐๐ต๐ฒ ๐ฐ๐ต๐ฎ๐ป๐ด๐ฒ๐ ๐ถ๐ป ๐๐ต๐ฒ ๐๐บ๐ฝ๐น๐ผ๐๐ฒ๐ฒ๐ ๐ฅ๐ฒ๐ด๐ถ๐๐๐ฟ๐ (๐ฅ๐๐ฉ๐๐ฆ๐๐)
Employers will have a maximum of 20 working days from 1st of July 2024 to register changes to the gross minimum wage increase with Revisal.
Failure to submit the modifications related to the salary increase on time may be sanctioned by the labour inspectors with a fine from 5,000 RON to 8,000 RON.
๐ฏ. ๐๐ป๐ฐ๐ฟ๐ฒ๐ฎ๐๐ถ๐ป๐ด ๐๐ต๐ฒ ๐ถ๐ป๐๐ฒ๐ฟ๐ป๐๐ต๐ถ๐ฝ ๐ฎ๐น๐น๐ผ๐๐ฎ๐ป๐ฐ๐ฒ
Law No 176/2018 on internship establishes that an intern must be paid at least half of the gross minimum wage in proportion to the time worked. Therefore, from 1st of July 2024, companies will refer to at least 1,850 RON when calculating the intern`s income.
๐ฐ. ๐๐ป๐ฐ๐ฟ๐ฒ๐ฎ๐๐ถ๐ป๐ด ๐๐ต๐ฒ ๐ถ๐ป๐ฐ๐ผ๐บ๐ฒ ๐ผ๐ณ ๐ฑ๐ฎ๐ ๐๐ผ๐ฟ๐ธ๐ฒ๐ฟ๐
Day workers also benefit from the increase of the gross minimum wage, as the law governing the work of day labourers has established a direct link between their pay and the minimum wage, so that the minimum hourly pay that can be paid to day labourers is equivalent to the minimum hourly pay of employees receiving the minimum wage.
Our Romanian member firm first published this news in April 2024. To read the full press release, click here. For more insights on this topic, reach out to our representative, Andreea Suciu, Founder of our Romanian member firm Suciu – Employment and Data Protection Lawyers.
