The minimum salary in Romania increases from the beginning of 2019

At a meeting on December 7th, the Romanian government approved an increase in the country's minimum gross salary. The current minimum salary is RON 1900 (around EUR 408) and from January 1st, 2019, it will be RON 2080 (approximately EUR 447). There is an exception - people with higher education and at least 1 year of experience in the field of their major will receive a higher minimum gross salary - RON 2350 (around 505).

These changes will lead not only to an increase of the workers' net salary (which will increase from the current RON 1162 / EUR 250 to RON 1268 / EUR 272.5), but also to an increase of the expenses of both workers and employers, because of the additional money for social securities, which they would have to pay. For example, the pension insurance contribution (which is owed by the worker) for a minimum salary increases from the current RON 475 (around EUR 102), to RON 520 (around EUR 112). At the same time, the health insurance contribution (also owed by the worker) increases from RON 190 (approximately EUR 41) to RON 208 (around EUR 45). The income tax for the minimum wage increases from RON 73 (≈ EUR 16) to RON 84 (≈ EUR 18). Just like it is now, these amounts will be deducted from the employee's salary and will be paid by the company-employer to the state budget.

The employment insurance contribution, amounting to 2.25% of the gross salary, will be paid by the employer. From January 1st, 2019, it will increase from RON 43 (≈ EUR 9) to RON 47 (≈ EUR 10). As a whole, the additional expenses for each employee, working for minimum salary, will go up by RON 184 per month (≈ EUR 39.5) or RON 2208 (≈ EUR 474.5).