The Romanian minimum gross salary, which is the minimum gross salary that an employee can be paid, established as per the applicable law, is the third lowest in the European Union, according to data published in January by Eurostat.
The Romanian minimum gross salary per economy was established at 2,230 lei/month until 13 January 2021. Based on this gross salary, the employee received “in hand” a net salary of approximately 1,346 lei (with the personal tax deduction applied), while the company born a total salary cost of around 2,280 lei. On 13 January 2021, the Romanian Government decided to slightly increase the minimum gross salary to 2,300 lei per month.
Minimum gross salaries in the EU, according to Eurostat
According to data published by Eurostat, before 13 January 2021, the minimum gross monthly salary in Romania was approximately the equivalent of 458 euros. At this level, the Romanian minimum wage was the third in line among the lowest in the EU. The other two countries with lower minimum wages than Romania were Bulgaria (with a minimum wage of approximately 332 euros/month) and Hungary (with a minimum wage of approximately 442 euros/month).
On the opposite side, the highest levels of the minimum wage in the EU were registered in Luxembourg (€ 2,202), Ireland (€ 1,724) and the Netherlands (€ 1,685).
In Spain, a country which is an important emigration destination of the Romanian labor force, the minimum gross salary per the economy was 1,108 euros per month. In France, the minimum gross salary was 1,555 euros, and in Germany, 1,614 euros.
Out of the total of 27 EU Member States, there are 6 countries where there is no national minimum wage established by law. These are: Italy, Finland, Denmark, Sweden, Austria and Cyprus.
In Romania, however, the median earnings are not high either, which is why we have a higher proportion of the minimum gross wage in the median gross monthly earnings than most of other richer EU countries. Thus, the Romanian minimum gross salary is approximately 61% of the median gross monthly income, while in Luxembourg and the Netherlands their minimum gross salary is 57% of their median income. In Ireland the proportion is 53%, and in Germany, 52%.
To clarify what the median gross earnings represent: in essence, it expresses the reference level at which most of the salary income in a country is grouped. Above this level is half of the salary income, and below it the other half.