On October 19, 2022, the European Parliament and the Council of the European Union adopted Directive (EU) 2022/2041 on adequate minimum wages in the European Union. This Directive establishes a framework for ensuring minimum wages that provide a decent standard of living for workers in the Member States.
Under the directive, Member States were obliged to transpose these regulations into national law by November 15, 2024.
In Romania, the Government approved in June 2024 a draft law transposing the above-mentioned directive into national law. This draft law provides for the annual updating of the guaranteed minimum gross national minimum wage, taking into account factors such as purchasing power, the general level of wages, their distribution, the rate of wage growth and labor productivity at national level. The law also stipulates that the minimum wage cannot be less than 50% of the average gross wage.
The draft law also includes measures to strengthen the role of trade unions and employers, promote collective bargaining and increase employees’ access to collectively negotiated wage rights. Penalties are also foreseen for failure to comply with the provisions on guaranteeing the payment of the minimum gross basic wage in the country, with fines ranging from 3,000 to 5,000 lei for each person who is not guaranteed the payment of the minimum gross wage
On November 14, 2024, the President of Romania promulgated the law transposing Directive (EU) 2022/2041 on adequate minimum wages in the European Union into national law.
According to the negotiations between the government, trade unions and employers, it should be 4,050 lei from January 1, 2025.
The Act includes regulations to ensure a new mechanism for setting the minimum wage level.
For employers and employees, this legislative change has significant implications. Employers need to ensure that their wage policies are in line with the new regulations and that employees are protected by an adequate minimum wage to ensure a decent standard of living.
Consultation with labor law specialists is recommended in order to fully understand the impact of these changes and to properly implement the new provisions.
We will come back with more details in the coming period.