Differentiated Minimum Wage Has Been Adopted
The recent normative act adopted by the Romanian government regarding the minimum wage shows that there is a possibility of establishing the differentiated minimum wage in compliance with the studies and experience. In other words, the rights and obligations connected to the minimum wage in Romania will be prescribed by the national minimum wage law. We invite you to get in touch with our Romanian accountants and find out information about the taxation on salaries in Romania and about the accounting services you can receive for your company.
New rules for the minimum wage in Romania
OUG 96/2018 which was recently adopted in Romania comes with several modifications regarding the minimum wage in Romania. One of the provisions of the document is the introduction of new rules for determining the gross minimum wage. More specifically, this can be established by the government in different ways, depending on educational level and experience of a person working in Romania.
It is good to know that the possibility of a differentiated minimum wage will not reflect on the rights and obligations established by reference to the minimum wage. In other words, the rights and obligations are determined by the minimum wage, in accordance with the gross national minimum wage.
The minimum wage will be modified
According to the government’s decree, starting with December 2018, the minimum wage will be increased at 2.080 lei. Though, the minimum wage will be set at 2.350 lei for jobs requiring higher education for persons with a minimum work age of 15 years. It is good to know that the gross minimum wage still has a unique amount of 1.900 lei, no matter the age or education, starting with January 2019.
The minimum gross wage according to the Labor Code in Romania
According to the Labor Code in Romania, the minimum gross salary for the normal working hours is set by the Romanian government after a consultation with employers and trade unions in Romania. For less than 8 working hours per day, the minimum wage is calculated by dividing the hourly minimum wage gross to the average number of working hours per month, in accordance with the accepted working schedule in Romania.
Please feel free to contact our accounting firm in Romania and solicit information about the taxes on salaries and also about audits for companies in Romania.