New regulations and facilities for construction industry

On the 21^st of June the Emergency Ordinate number 43/2019 came into force. It brings significant changes to the regulations that have previously governed the construction industry.

Briefly, the changes brought by the EO 43/2019 are based on four pillars. These have implications for the minimum wage in the industry, on the one hand, and for the necessary conditions employers and employees need to fulfil in order to enjoy the financial benefits, on the other.

 I. Minimum wage.

For the period comprised between 01.01.2020 and 31.12.2028, the minimum wage in the construction industry will be 3.000 RON, for a normal work schedule averaging around 167,333 hours per month. This will represent, on average, 17. 938 RON per hour.

On the 21^st of June the Emergency Ordinate number 43/2019 came into force. It brings significant changes to the regulations that have previously governed the construction industry.

Briefly, the changes brought by the EO 43/2019 are based on four pillars. These have implications for the minimum wage in the industry, on the one hand, and for the necessary conditions employers and employees need to fulfil in order to enjoy the financial benefits, on the other.

 I. Minimum wage.

For the period comprised between 01.01.2020 and 31.12.2028, the minimum wage in the construction industry will be 3.000 RON, for a normal work schedule averaging around 167,333 hours per month. This will represent, on average, 17. 938 RON per hour.

 II. Field of activity- benefits for the employer

The construction industry is defined as consisting of the following fields of activity:

•  Building activities, defined by the CAEN code 41.42.43- section F- Constructions;
• The fields of activity concerning the manufacturing of materials, defined by the following CAEN codes:
  • 2312 – The processing and trimming of flat glass;
  • 2331 – The manufacturing of ceramic tiles and plaques;
  • 2332 – The manufacturing of bricks, tiles and other building products made from burnt clay;
  • 2361 – The manufacturing of building products made from concrete;
  • 2362 – The manufacturing of building products made from gypsum;  
  • 2363 – The manufacturing of concrete;
  • 2364 – The manufacturing of mortar;
  • 2369 – The manufacturing of other building products made from concrete, cement, and gypsum;
  • 2370 – The cutting, trimming and polishing of stone;
  • 2223 – The manufacturing of building materials made from plastic;
  • 1623 – The manufacturing of other carpentry and joinery products for construction;
  • 2512 – The manufacturing of metal doors and windows;
  • 2511 – The manufacturing of metal constructions and component parts of metal constructions;
  • 0811 – The extraction of ornamental and building stone, the extraction of calcareous stone, gypsum, chalk, and of slate;
  • 0520 – The extraction of inferior coal;
  • 0812 – The extraction of sand and gravel;
  • 2351 – The manufacturing of cement;  2352- The manufacturing of lime and plaster;
  • 2399 – The manufacturing of other products made from non-metallic minerals (otherwise unclassified)

• 711- Architecture, engineering, and technical consultancy services.

  In addition to the CAEN codes that have already been listed in EO 114/2018, the ones that EO 43/2019 adds are:

• 2351 – The manufacturing of cement;
• 2352 – The manufacturing of lime and plaster;
• 0520 – The extraction of inferior coal;
• 2399 – The manufacturing of other products made from non-metallic minerals (otherwise unclassified);

III. Turnover- benefits for the employer

To enjoy the financial benefits, the employer needs to have a turnover of at least 80% resulting from one of the activities listed above. The turnover needs to have been reached in the previous financial year. Therefore, there are two types of companies:

1. The companies that have reached the 80% threshold- these will enjoy the benefits throughout the current financial year
2. The companies that are newly founded OR have not reached the threshold in the previous year- in this case, the 80% threshold will be calculated summing the monthly turnover, including the turnover of the first month when the company becomes eligible to enjoy the benefits.

The turnover will be calculated, taking into account the labour, the materials, the machines used, the equipment, the transport, and other auxiliary activities that are necessary to perform the activities comprised in the above CAEN codes.

IV. The revenue brackets- benefits for the employee

To enjoy the financial benefits of the current regime, the employee must:

1. Be employed full-time, for (at least) 8 hour per day;
2. The gross revenue resulting from his employment in the industry must fall within the bracket of 3.000-30.000 RON. The employee will not enjoy the benefits for the part of the revenue that exceeds 30.000 RON.