NNDKP Employment Flash No.1/2025 – Latest news in the labor law field
Minimum wage: New rules for determination and adjustment
The Government Decision no. 35/2025 regarding the approval of the procedure for implementing the mechanism for determining and adjusting the minimum gross base wage at national level was published on February 6, 2025, in the Official Gazette Part I no. 111 (the “GD”).
Thus, the Directive (EU) 2022/2041 on adequate minimum wages in the European Union is transposed into national law.
The GD establishes a procedure for determining and updating the minimum gross base wage at national level, according to a calculation formula and based on several economic indicators.
The guaranteed gross minimum wage will thus be determined based on key criteria such as the purchasing power (taking into account the cost of living), the general level and distribution of wages, the rate of wage growth and long-term national productivity levels and trends.
Additionally, economic indicators such as the forecast annual inflation rate, forecast employed population and the forecast gross domestic product (GDP) will be considered for the determination and update of the guaranteed gross minimum wage, and indicators such as the poverty rate and income inequality will be taken into account for the annual assessment of the impact of the gross minimum basic wage.
The Government will regularly update the minimum wage in line with changes in the economic indicators. The Ministry of Labor will collect and analyze data provided by the National Institute of Statistics and the National Commission for Strategy and Prognosis to adjust the wage level annually.
This GD supplements Law No. 283/2024 on the amendment and completion of certain normative acts, for the establishment of adequate minimum wages, which created the legal framework for establishing the procedure for applying the mechanism for determining and updating the minimum gross base wage at national level.
As a separate note, we remind you that starting with January 1st, 2025, the minimum gross base wage at national level, guaranteed for payment, not including allowances, bonuses and other benefits, is of RON 4,050 per month, for a normal working schedule averaging 165.334 hours per month, i.e. RON 24.496 /hour.
The Romanian version of this newsletter is available here.
