The gross minimum wage in Romania will amount to RON 1,450 (EUR 321.4) starting February 1, according to a draft government decision published by the Labor Ministry.

The Social Democratic Party (PSD) leader Liviu Dragnea said yesterday in the Parliament that the increase in the minimum wage to RON 1,450 will be one of the first measures adopted by the Grindeanu Government in the Friday meeting. Other measures will include the 20% salary increase for people working in the local administration, and a 50% wage growth for actors and other artists.

The net minimum wage will grow by RON 140 (EUR 31), to RON 1,065 (EUR 236) per month. The gross minimum wage currently amounts to RON 1,250 per month. The employee gets RON 925, and the state collects RON 613 through taxes and contributions from the employee and his employer. Starting February 1, the state will get RON 718 from taxes whereas the employee will receive RON 1,065.

In October last year, Romania had 5.1 million full-time labor contracts. Of the total number, the minimum wage contracts reached over 1.5 million.

editor@romania-insider.com