The Romanian Government came up with a balanced decision affecting the minimum wage per industry with afflictions to a handful of industries and benefits to others. The minimum wage per industry, including private companies, will increase from Ron 3,000 to Ron 3,300 gross, as of October 1, 2023, according to the decision supported by the politicians in the ruling coalition. It also envisages an increase in the minimum wage in constructions, from Ron 4,000 gross to Ron 4,500.
Currently, there are approximately 1.5 million employees paid with a minimum wage of Ron 3,000 and another 350,000 paid with a minimum wage of Ron 4,000 in construction-related fields.
Employees in construction and agriculture are expected to also pay health contributions, from 1 October. IT specialists are also targeted. Those with salaries higher than Ron 10,000 gross monthly will be taxed with ten percent income tax. Holiday vouchers for public employees with salaries higher than 10,000 lei will also be eliminated.
The main reason for the foregoing changes is that the coalition is under pressure from the European Commission to take measures to reduce budget expenditures and limit the deficit as well as not to suspend European funds.
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