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Increase of the Minimum Gross Base Salary at National Level

Increase of the Minimum Gross Base Salary at National Level

Romania
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As of 1 January 2018, the minimum gross base salary at national level for the full monthly average working time of 166.666 hours is set at Lei 1,900 (approx. EUR 410), which is the equivalent of 11.40 Lei/hour. This is an increase of Lei 450 over the minimum gross basic salary of Lei 1,450 (approx. EUR 313), which is applicable until the end of the year.

According to the Labour Code, employers who pay a minimum gross base salary that is less than the minimum amount at national level are sanctioned with fines ranging from Lei 300 (approx. €65) to Lei 2,000 (approx. EUR 432). The labour inspectors issue the sanctions and apply the fines.

Conclusions: Employers have to increase present salaries that are lower than Lei 1,900 per month to this amount. For this purpose, an addendum to each individual employment agreement stipulating the salary increase to Lei 1,900 per month is to be concluded. Employers have to register the salary increase with the General Registry of Employees until 31 March 2018, pursuant to article 13 paragraph 2 of the Government Decision no. 905/2017 on the General Registry of Employees.

By Andreea Suciu, Advocat, Noerr

Romanian Knowledge Partner

Țuca Zbârcea & Asociații is a full-service independent law firm, employing cross-disciplinary teams of lawyers, insolvency practitioners, tax consultants, IP counsellors, economists and staff members. It also operates a secondary law office in Cluj-Napoca (Romania), and has a ‘best-friend’ agreement with a leading law firm in the Republic of Moldova. In addition, thanks to the firm’s dedicated Foreign Desks, the team provides the full range of services to international investors seeking to gain a foothold or expand their existing operations in Romania. Since 2019, the firm and its tax arm are collaborating with Andersen Global in Romania.

Țuca Zbârcea & Asociaţii is providing legal services in every aspect of business, covering all major areas of practice: corporate and M&A; litigation and international arbitration; corporate tax; public procurement; TMT; employment; insurance; banking and finance; capital markets; competition; healthcare and pharmaceutical; energy and natural resources; environmental; intellectual property; real estate; regulatory legal services.

Țuca Zbârcea & Asociaţii is a First-Tier law firm in all international legal directories and a multiple award-winning law firm both locally and internationally. It received the CEE Deal of the Year Award (DOTY Awards 2021) and the Law Firm of the Year Award: Romania (IFLR Europe Awards 2021). 

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