As has been customary in the past, with the end of the administrative year and in anticipation of the 2020 macroeconomic trend, the Romanian government and parliament have adopted some important measures for the Romanian labor market; the main one concerns the increase of the 2020 legal minimum wage but there are other very important changes.
Increase in the legal minimum wage 2020
The government recently adopted the measure determining the increase of the statutory gross minimum wage to 2,230 lei for 2020 and thus the amendment of Article 164 of the Labor Code, Law 53 of 2003.
The minimum wage will increase next year by 7.2 percent, to 2,230 lei monthly from 2,080 lei, as it was for 2019, with 150 lei gross and 83 lei net, respectively.
We point out that the gross legal minimum wage of 2,230 lei per month results exclusive of bonuses and other surcharges, and is set for a normal (full-time) work schedule averaging 167.333 hours per month, which consequently are valued according to the new legal minimum at 13.327 lei/hour.
For personnel assigned to positions for which higher education is provided, with a minimum seniority of one year, the statutory minimum gross base salary, not including allowances and other supplements, is maintained at the sum of 2,350 lei per month, for a normal work schedule of 167.333 hours on average per month, for a gross hourly wage of 14.044 lei/hour.
Recall that the government’s draft decree law establishing the minimum wage in 2020 is not yet in force, needing imminent publication in the Official Gazette.
Increase in the face value of food stamps
The maximum face value of a meal voucher will be increased in 2020 from the amount of 15.18 lei to 20 lei. The bill for the amendment Of Article 14 of Law No. 165/2018. regarding the allocation of food stamps, was adopted by the Senate in late September and sent for debate in the House of Representatives.
The provisions of this law shall enter into force on the 1st month following the month in which this law is published in the Official Gazette of Romania.
Maxi penalty for unpaid overtime for employees
Employers who violate legal provisions on overtime work risk higher fines than at present, according to a draft regulatory act adopted by Parliament. Specifically, the current penalty will apply not just once, but for each person for whom the legislation is violated, such as, for example, when overtime worked by employees is not paid.
Currently, an employer faces a single fine of between 1,500 and 3,000 lei for this reason, but the plan is for the fine to be levied for each person for whom labor inspectors identify irregularities.
In other words, if, at present, an employer violates the overtime provisions for ten employees, the penalty is between 1,500 and 3,000 lei. After the implementation of the bill, in the exact same situation the employer risks a minimum total fine of 15,000 lei and a maximum total of 30,000 lei (i.e., between 1,500 and 3,000 lei for each of the ten people).
There are several provisions in the Labor Code that relate to employee overtime work and violation of which can result in penalties for employers. As a reminder, part-time employees are not allowed to work overtime, and any full-time employee who is at least 18 years old may only work additional work if he or she agrees with the employer’s request to do so.
Another provision is that the maximum legal working hours may not exceed 48 hours per week, including, with some exceptions, overtime.
Overtime work should by law be compensated with free and paid hours over the next 60 calendar days, and in addition, the Labor Code stipulates, but if this is not possible, an increase of at least 75 percent of base salary should be granted.
We point out that the draft law under comment has not currently entered into force. To take effect, it must be promulgated by presidential decree and published in the Official Gazette.
