Key Points
- Romania has announced new minimum wages for 2021
- A new 2021 minimum wage of 2,300 RON gross per month applies to non-graduate positions
- Minimum wages for graduate positions will stay the same at RON 2,350 gross per month
- The minimum wage change applies to new, pending, and existing applications
- Employees must receive one time the minimum wage rate for each dependent
- Some allowances and benefits qualify for minimum wage rate calculations
Overview
The Romanian government has announced updated minimum salary levels for certain workers in 2021.
What are the Changes?
The minimum salary level for non-graduate positions will increase to RON 2,300 gross per month. Minimum wages for graduates will remain the same at RON 2,350 gross per month.
Who is Affected?
Affected categories include Work and Residence Permit for Local Hires and EU Intra-Company Transferee (ICT) Work Permit for Short-Term Mobility.
A separate salary threshold applies to EU Blue Card and EU ICT Permit holders.
What Should Employers and Applicants Know?
Employers must adjust their foreign workers' salaries to meet the new minimum wage requirements for 2021. The changes affect pending, current, and new applications.
Additionally, employers should note that additional funds are required for dependents. Local hires should receive additional compensation one time the minimum salary rate for each dependent. They must receive sufficient compensation to cover their stay in Romania.
Employers must compensate their foreign workers in RON, regardless of payroll and contact location. Benefits and allowances may be included if they are fixed, guaranteed, specified in the assignment letter, and not paid in kind. Holiday allowances are not permitted in minimum salary calculations.
Originally Published by Envoy, February 2021
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