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New changes regarding the minimum gross salary in Romania, starting 1st of January | News Flash

December 20, 2024
This article is also available in
Romanian

The Romanian Government Decision no. 1506/27.11.2024 for determining the country’s guaranteed gross minimum wage was published in the Official Gazette, Part I, no. 1185 of 28.11.2024.

According to the provisions of this normative act, as of 1 January 2025, the minimum gross basic wage per country guaranteed in payment, provided for in Article 164 para. (1) of Law no. 53/2003 – Labour Code, republished, with subsequent amendments and additions, is set in cash, excluding bonuses and other allowances, at RON 4,050 per month, for a normal working schedule averaging 165.334 hours per month, representing RON 24.496 per hour.

The Romanian Government Decision No 1506/27.11.2024 repeals Government Decision No 598/2024 with effect from 1 January 2025.

The reasons taken into account in drafting the legislative act, as can be seen from the explanatory memorandum to the decision, took into account legal, social and economic factors, such as:

  • Article 3 of the International Labour Organisation Convention No 131/1970 concerning minimum wage fixing, ratified by Romania in 1975;
  • Reducing the number of employees at risk of poverty and social exclusion; and
  • The requirements of economic development, labour productivity, changes in the consumer price index, economic growth, growth in average earnings and the incentive to achieve and maintain a high level of labour utilisation.

A total of 1,823,520 Romanian employees will benefit from the increase of the guaranteed gross minimum basic wage to RON 4,050. This measure will have positive effects on the Romanian economy by stimulating workforce participation, increasing employees’ purchasing power, and reducing undeclared work.

Tatiana Constantin-Hozoc
Payroll Legal Counsel | Accace Romania
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