Government approves 10% increase in minimum wage, as of October 1

The Government approved, on Thursday, the increase, from October 1, by 10% of the minimum gross salary guaranteed in payment, from 3,000 RON to 3,300 RON, announced the spokesman of the Executive, Mihai Constantin."It is a 10% increase that will benefit 1,867,000 employees," Constantin said.He mentioned that the measure will have an impact on several sectors of activity, especially in the fields of transport, trade and SMEs.Asked what the net minimum wage increase will be, Mihai Constantin specified: "The guaranteed gross minimum wage in payment has increased by 10% and the calculations of the Ministry of Labor show that this net means a net minimum wage payment of 2,079 RON, an increase of 181 RON compared to of the present. (...) These are the current data that come from the Ministry of Labour, the initiator of this draft normative act".   However, the ordinance regarding the increase of the minimum wage in construction, agriculture and the food industry was removed from the agenda, because, from the calculations presented this morning by the Minister of Finance, they would actually have decreased, following the introduction of the health insurance payment for all employees.   “The calculations presented this morning by the Minister of Finance show that, following the introduction of health insurance for all employees, regardless of activity, the minimum net salary of employees in construction, agriculture and the food industry could have decreased. I do not agree with this”, explained Ciolacu. “No net minimum wage must decrease! As a result, we decided to remove from the agenda this ordinance that targets these categories. The relevant ministries will reanalyze the text. Until then, all salaries in construction, agriculture and the food industry will remain the same”, he stated.   At a salary in construction and agriculture of 4,000 lei for which no health contributions are paid, the net salary is 3,150 lei. If the gross salary increases to 4,500 lei, but health contributions are paid, the net decreases to 3,094 lei.   “Through this normative act, it is proposed that the gross minimum basic salary per country guaranteed in payment be increased to 3,300 lei per month starting from the date of entry into force of this government decision, which represents a 10% increase, compared to September 2023. In September 2023, the hourly rate is 18,145 lei/hour for a full work schedule of 165,333 hours per month, and from October 2023 the hourly rate will be 19,960 lei/hour for a full work schedule of 165,333 hours /month“, reads the substantiation report.