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The modification of the minimum wage, at the beginning of 2014

The beginning of 2014 brings a set of legislative changes in the tax area. The vast majority has been announced at the end of the last year, so there are few who know these modifications and the fact that they will take effect from January 2014.

Among these changes, we are listing here below the ones with impact in the field of labor and social protection:

  • minimum wage increases from 800 Ron to 850 Ron. This change is provided in the Government Decision No. 871 of 2013, published in the Official Gazette no. 703 of 15th November.
  • the same decision establishes another growth of the minimum remuneration from 1st of July 2014 to the value of 900 Ron. According to legal provisions, the employers who are setting wages lower than the minimum are risking fines between 1000 and 2000 Ron. Important: Besides the payment of the increased wages, the employers have the obligation to report this salary growth in the Register of the Employees.
  • the average gross wage will increase from 2.223 Ron to 2.298 Ron. The law that provides an increase of 75 Ron for the average gross wage per economy is the Law no. 340/2013 of the state social insurance budget which has been published in the Official Gazette no. 776 of 12 December.
  • as a result of this change, even the amount of the death benefit will increase to 2298 Ron, for the insured or for the pensioner. In the case of a family member of the insured person or the pensioner, thedeath benefit will be 1149 Ron in 2014, compared to 1112 Ron, as it was in 2013. The death benefit shall be granted in case of death of the insured, of the pensioner or of a family member that has no autonomous right to social insurance and who is dependent on the holder at the date of death, to one person who proves that he supportedthe expenses incurred by the death and which may be, if applicable: the surviving spouse, the child, the parent, the tutor, the curator, the heir under the conditions of the common law, or in their absence, to any person that proves with documents that he/she supported the expenses incurred by the death. In the case of the unable-to-work child`s death, regardless of age, the death benefit shall be granted upon presentation of the certificate of assignment to a category of disabilities or, in the absence of it, of the document signed by the medical expert of social insurance, stating the disease that made him/her unable for work and its date of occurrence.
  • In 2014, the value of the pension point is 790.7 Ron, and this value will be increased by an index of 1.07, according to the provisions of the pension law that is increasing the pensions based on the average wages.

The social contribution rates will be kept at the same level as in 2013.

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