The minimum wage changes in 2023
From January 1, 2023, according to GD no. 1,447 of 08.12.2022, the minimum gross basic salary per country guaranteed in payment increases from 2,550 lei to 3,000 lei gross per month, for a normal work schedule on average 165,333 hours per month, representing on average 18,145 lei / hour. This change represents a gross increase of 17.6% compared to 2022, the related net salary will be 1,863 lei compared to 1,524 lei, that is, with 339 lei net more than it is today. In this context, the companies will bear a salary cost of 3,063 lei, compared to 2,607 lei as it is today.
By GEO no. 168 of 08.12.2022, the extension with modifications of the fiscal facility regarding the tax exemption for 200 lei from the minimum wage was established. Practically, 200 lei of the 3,000 lei will be exempt from taxes ( no income tax and social contributions ) are due and apply if employees are full-time in the place where the basic function is, in compliance with certain conditions provided by law. The 200 non-taxed lei will be taken in the calculation of the employees’ pension.
Cumulative conditions to be met for the exemption to apply:
- the level of the gross monthly basic salary established under the individual employment contract, not including bonuses and other additions, is equal to the level of the minimum gross salary per country guaranteed in payment, in force in the month to which the income relates. Attention – if between the date of entry into force of the emergency ordinance and 31 December 2023, the level of the gross monthly basic salary established under the individual employment contract is reduced, the exemption cannot be applied;
- the gross income realized from salaries and assimilated to salaries, based on the same individual employment contract, for the same month, does not exceed the level of 4,000 lei inclusive.
The amount of 200 lei is reduced depending on:
a) the period of the month in which the monthly basic salary in the individual employment contract is maintained at the level of the minimum gross salary per country guaranteed in payment
b) the date from which new employees are employed at a monthly salary level equal to the minimum gross salary level per country guaranteed in payment
c) the fraction of the month for which income from salaries is determined and assimilated to salaries
d) the date from which the individual employment contract ceases
According to the Ministry of Labor, approximately 2.1 million employees will benefit from the increase of the minimum basic salary to 3,000 lei.
Minimum salary in agri-food
In the agri-food sector, the minimum gross basic salary per country guaranteed in payment remains the same ( 3,000 gross lei ) for employees benefiting from tax exemptions applied to this field since June 2022. The employee without dependents receives a net salary of 2,362 lei. We remind you that in the agri-food sector the income tax, the health contribution and, optionally, the Second Pension Pillar are not paid.
By GEO no. 168 of 08.12.2022, employees in agriculture and the food industry who do not benefit from the tax facilities specific to the field provided in Law 135/2022, will benefit from the minimum wage per economy of 3,000 lei gross, with the tax exemption for 200 lei in case of compliance with the conditions specified above. Thus, the employee in the agri-food sector, without dependents, receives a net salary of 1,863 lei.
Minimum wage in construction
From January 1, 2023, according to GEO no. 168 of 08.12.2022, the minimum gross basic salary per country guaranteed in payment for the construction sector increases from 3,000 lei to 4,000 gross monthly lei, for a normal work schedule on average 165,333 hours per month, representing on average 24,194 lei / hour. This change represents a gross increase of over 33% compared to 2022, the related net salary will be 3,150 lei compared to 2,362 lei, that is, with 788 lei net more than it is today. The increase applies for the period from 1 January 2023 — 31 December 2028. In this context, the companies will bear a salary cost of 4,013 lei, compared to 3,010 lei as it is today.
We remind you that in the construction sector the income tax, the health contribution and, optionally, to the Second Pension Pillar are not paid. In the case of construction companies that violate the obligation to increase the minimum wage from 3,000 lei to 4,000 lei from 2023, the fiscal facilities specific to the salary of the construction sector will be lost, and the companies will also be fined contravention with amounts between 300 lei – 2,000 lei for each case.
Increasing the minimum gross basic salary in the country always has a boomerang effect for the whole economy, influencing other obligations related to this salary: the contribution for unclassified people with disabilities, the annual basis for calculating the social security contribution for persons earning income from self-employment / intellectual property rights, the ceiling according to which individuals who obtain non-salary income have the obligation to pay social security and social health insurance contributions, etc.