It’s Official: the Gross Minimum Wage Increases to 1,250 Lei from May 1, 2016 - Your strategic HR partner - Smartree

It’s Official: the Gross Minimum Wage Increases to 1,250 Lei from May 1, 2016

The gross national minimum wage guaranteed for payment will increase from 1 May 2016 with 200 lei to 1,250 lei, according to the Government Decision 1017/2015 published in the Official Gazette of December 31, 2015.

The new value of the minimum wage means, for a full program of 169.333 hours monthly average, a pay of 7.382 lei / hour.

Thus, an employee paid with the minimum wage will actually receive 917 lei net and the cost of the employer will be 1,534 lei.

The Payment under the Guaranteed Minimum Wage, Amended

The employers who pay their employees with an amount less than the minimum wage risk fines from 1,000 lei to 2,000 lei for each individual labor contract in which the salary is below the level established by the Government.

The contravention can be established by ITM, who can also apply sanctions.

The change of the individual labor contract to increase the wage at the new value set by the government is made through an addendum to be registered in Revisal.

Increasing the minimum wage impacts:

  • The cost of employer;
  • The taxes paid by employers;
  • The minimum remuneration granted for the day workers;
  • The basis limit for calculating the leave contribution and the allowances of health insurance;
  • The contribution for unfitted persons with disabilities

The minimum wage has increased in two tranches in 2015, by 75 lei in January last year, from 900 to 975 lei and by another 75 lei, from July 2015, to 1,050 lei.

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