Minimum Salary May Increase Due to Social Security Changes
November 27, 2017
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Executive Summary
Following a significant change in social security rules in Romania that is expected to come into effect January 1, 2018, the minimum salary required for foreign workers is expected to increase. Additionally, the national minimum wage will increase on January 1, 2018.
The situation
The minimum salary level for foreign workers in Romania will likely increase in January 2018 to compensate for a significant change in social security rules.
A closer look
If a new ordinance is applied as expected on January 1, 2018, the social security responsibility would shift from employer to employee. This would significantly increase the tax burden for employees. The minimum salary for foreign workers would likely increase to compensate.
Background
The current monthly minimum salary for foreign workers is:
- RON 3,131 for standard employments and secondments;
- RON 12,423 for EU Blue Card holders; and
- An additional RON 1,450 per each accompanying dependent.
The national minimum wage is also expected to increase from RON 1,450 to RON 1,900 monthly on January 1, 2018.
Impact
Employers should prepare their budgets with the likely increase to minimum salary levels in mind.
Looking ahead
Fragomen will keep clients informed on developments with this new ordinance and the projected impacts.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
