Increase in gross minimum wage from May 1, 2016

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Increase in gross minimum wage from May 1, 2016

The gross basic minimum wage as of May 1, 2016 will be increased by law to 1,250 lei monthlyfor working hours of 8 hours per day as -established by the government. Comparatively, the statutory minimum basic wage compared to 2015 will increase by 19%. As a result, the worker with gross minimum wage will be able to receive a net of about 917 lei ( about 200 euros).

The increase of about 200 lei gross since the last legislative change is part of a physiological trend of increasing demand for labor from foreign investors and the consequent revaluation of the purchase price of the labor factor.

Employers who fail to implement the statutory increase will be subject to the risk of being fined a sum ranging from a minimum of 1,000 to a maximum of 2,000 lei.

We remain available for further clarification.

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Cristian Meneghetti

Italian accountant, working in Romania, expert in international taxation, graduated in Economics from the University of Venice.