What is the Minimum Wage in Romania in 2024?
Gross Minimum Wage Romania
As per Government Decision No. 598/2024, the gross minimum wage in Romania is set at 3,700 RON per month starting July 1, 2024. This applies to a standard 168-hour work month, translating to approximately 22.02 RON/hour. Notably, this figure excludes allowances, bonuses, and other benefits. Employees earning the minimum wage will see a net increase of around 280 RON in their monthly take-home pay.
Exceptions in Specific Sectors
The standard gross minimum wage does not apply universally. Certain industries have sector-specific minimum wage requirements under Emergency Ordinance No. 93/2023:
- Construction Sector: The gross minimum wage is 4,582 RON/month, approximately 27.71 RON/hour, for a standard 165.33-hour month.
- Agriculture and Food Industry: The gross minimum wage is 3,436 RON/month, equivalent to 20.78 RON/hour, for the same 165.33-hour work month.
These sector-specific rates ensure that employees in high-demand industries receive adequate compensation.
Net Minimum Wage in Romania in 2024
For a gross minimum wage of 3,700 RON, the net minimum wage (after mandatory deductions for social security contributions and income tax) is approximately 2,366 RON. Additionally, starting July 2024, the tax-exempt portion of the minimum wage has been increased from 200 RON/month to 300 RON/month, as per Emergency Ordinance No. 59/2024. This measure further enhances employees’ net income.
Minimum Wage for Part-Time Workers in Romania
For employees working less than the standard eight hours per day, the hourly gross minimum wage is calculated proportionally. Based on the updated gross minimum wage of 3,700 RON, the hourly rate is 22.02 RON/hour.
Employer Contributions for Minimum Wage in Romania
Employers must remit various taxes and contributions for employees earning the minimum wage, including:
- Social Insurance Contribution (CAS): Retained from the employee’s gross wage and transferred to the state.
- Health Insurance Contribution (CASS): Similarly withheld and paid by the employer on behalf of the employee.
- Work Insurance Contribution (CAM): Equal to 2.25% of the gross wage, borne entirely by the employer.
For a gross wage of 3,700 RON, the CAM contribution amounts to approximately 83.25 RON.
The increase in Romania’s minimum wage for 2024 reflects efforts to support workers and align with economic demands. Employers must adapt to these changes while ensuring compliance with relevant laws and maintaining equitable pay structures across their workforce.