On 17 November 2024, the Law no. 283/2024 on amending and supplementing certain normative acts, for the establishment of adequate minimum wages (the "Law"), entered into force, amending both the Labor Code and other normative acts in order to transpose into national law Directive (EU) 2022/2.041 of the European Parliament and of the Council of 19 October 2022 on adequate minimum wages in the European Union.
The Law defines the following concepts:
1. Salary
It includes: basic salary, allowances, bonuses and other allowances.
2. Basic salary
It is the fixed component of the gross remuneration paid to an employee for work performed during a calendar month.
The basic salary does not include allowances, bonuses and other allowances.
3. Gross minimum basic salary
It is the minimum amount to which the employee is entitled for the work performed, established by law or by the applicable collective bargaining agreement. Minimum wage levels are established by the applicable collective labor agreements.
According to the Law, employers are obliged to guarantee a wage that is at least equal to the gross minimum basic salary. Failure to comply with the provisions on the minimum gross basic salary is punishable by a fine of between RON 3,000 and RON 5,000 for each employee for whom irregularities have been found, not exceeding a cumulative amount of RON 200,000. In addition, repeatedly setting wages below the minimum gross basic salary is a criminal offense and is punishable by imprisonment from one month to one year or a criminal fine.
4. Gross minimum basic salary per country guaranteed in payment
It is the amount set annually by Government decision, corresponding to normal working hours, for the purpose of improving living and working conditions, in particular the adequacy of the minimum wage, in order to ensure a decent standard of living.
According to the Law, the gross minimum basic salary per country guaranteed in payment corresponding to the normal working hours:
▸ is set annually by Government Decision;
▸ shall apply from January 1 of the following year;
▸ shall be updated once a year, after consultation with the nationally representative trade union and employers' confederations, on the basis of the procedure for the application of the mechanism for establishing and updating the gross minimum basic salary per country guaranteed in payment, which is approved by Government Decision (the "Procedure");
▸ is brought to the attention of the employees by the employer.
The Procedure establishes the assessment of the adequacy of the gross minimum basic salary per country guaranteed in payment, according to its share in the average gross earnings. As a guideline, this ratio should be between 47% and 52%. Among other things, the procedure must also include the criteria for establishing and updating the gross minimum basic salary per country guaranteed in payment. According to the Law, these criteria must include at least the following elements:
▸ purchasing power of the minimum wage, taking into account the cost of living;
▸ the general level and distribution of wages;
▸ the rate of wage growth;
▸ long-term national productivity levels and trends.
