The basic minimum wage was increased!

The guaranteed basic gross minimum wage in payment is now 2300 lei monthly, as of 13 January 2021.

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In the Official Gazette n. 40/13.01.2021 was published Government Decree no. 4, with which, from 13 January 2021, the gross basic minimum wage per country guaranteed in Article 164(1) of Law 53/2003 – Labour Code, republished, as amended and completed, it is fixed, in cash, excluding increases, at 2300 lei per month, for an average normal working time of 169,333 hours per month, equal to 13,583 lei per hour.

For the highly educated employees for which the level of higher education is fixed, with at least one year’s service in higher education, the minimum gross basic salary per country guaranteed in payment, excluding allowances and other additions, is fixed at 2350 lei per month, for a normal working time on average 169,333 hours per month, equal to 13,878 lei/hour.

Here are some useful details for the application of this legal provision:

  • the date from which the Government’s decision applies is 13.01.2021 and not 01.01.2021;
  • for the calculation of salary in January, two minimum wage bases will be taken into account, namely 2230 lei until 12.01.2021 and 2300 lei after that date;
  • since the calculation of salaries will be very difficult, employers may decide to apply the minimum wage from 01.01.2021, of course if the staff budget allows it;
  • amendments to the minimum wage shall be made by means of an amendment to the individual employment contract;
  • the communication of the modification of the minimum wage in the Revisal will be effected within 20 working days from the moment in which it has been produced.

Do not forget that with this increase:

  • the contribution for non-classified persons with disabilities will be increased as the calculation relates to the minimum wage;
  • the annual basis for the calculation of the social contribution for intellectual property rights/self-employment will be amended;
  • the ceiling will be increased by making social and health contributions payable by natural persons in receipt of non-wage income;
  • the income rules for self-employment income tax under the income rules will be increased.