Romania’s Government will approve this week the bill increasing the gross minimum wage to RON 1,900 (EUR 409) starting January 1, 2018, labor minister Lia Olguta Vasilescu said yesterday.

The gross minimum wage currently amounts to RON 1,450 (EUR 315.3).

The net minimum salary will only increase by 4.3% or less than RON 50, as most of the social contributions that are currently being paid by employers will be transferred to employees starting January 1, 2018.

The proposed increase will have positive effects on the economic growth by stimulating employment and reducing black work, reads the note accompanying the bill.

The Labor Ministry published the draft project on increasing the minimum salary on its website on October 26. It waited for suggestions and opinions until November 4.

editor@romania-insider.com