Minimum wage changes from 1 July 2024

From 1 July 2024, the minimum gross basic wage guaranteed in payment increases from 3,300 lei to 3,700 lei gross per month. This will represent an increase of 12.12%, which means a net increase of 242 lei. At the same time, the tax-free allowance of 200 lei for employers will be maintained until the end of the year.

The announcement was made by Prime Minister Marcel Ciolacu at the end of the National Tripartite Council meeting. The measure is considered by the Prime Minister as a correct step towards the implementation of the European minimum wage. He held consultations at the Victoria Palace with representatives of trade unions and employers during the meeting of the National Tripartite Council for Social Dialogue, the main topic of which was the level of the guaranteed gross minimum wage.

Let’s not forget that raising the country’s minimum gross basic wage always has a much more complex impact, with a boomerang effect for the whole economy. The increase in the gross national minimum wage also has an impact on other obligations related to this wage: the contribution for unpaid disabled persons, the annual basis for calculating social security contributions for persons earning income from self-employment/intellectual property rights, the ceiling on the amount of social security and health insurance contributions payable by individuals earning non-wage income, etc.

Although the announcement was made on 23.05.2024, the legislative act with this amendment has not yet appeared, so we are waiting for the publication of the Government Decision in the Official Gazette.