Any company that operates on the Romanian territory or wishes to enter this market needs to know that Romania’s public administration continues to evolve and digitalise, and the most important step regarding labor relation is REGES – ONLINE (previously known as REVISAL). This new online platform allows the employers to manage, update, and submit information regarding individual employment contracts directly to the competent authorities, Territorial Labour Inspectorate (ITM), can verify and indentify potential non-compliance more easily.
The 24-Month Rule
In this regard, employers must pay close attention to salary obligation that can be verified easily by the ITM, through the history of contracts and addendums. According to Article 164 of the Romanian Labour Code with related amendments from 2021, stipulates that within a maximum of 24 month from the start of individual employment contract (CIM), the minimum base salary must increase.
Note: This is a distinct requirement from the state-mandated national minimum wage increase.
The Impact from the July 1st Wage Adjustment
Starting from July 2026, when the national gross minimum wage increases from 4,050 RON (approximatively €777) to 4,325 RON (approximatively €830), some employers must consider higher salary increases for the employees who have more than 2 years in their company.
The Fiscal Challenge
The law does not specify by how much the gross salary must be increased, this needs to be done by unilateral decision of the employer ( internal procedure of the companies) or through negotiation and reassessement of the employee’s skills.
However, it must be taken into account that there are tax facilities for minimum wage, more precisely after 1st of July, the reduction facility applied on the minimum wage will be reduced from 300 RON to 200 RON (~€30). Thus, if an increase is applied on the minimum salary, even with 1 RON, they will lose the tax facility available at the moment, which can result in a lower NET salary for the employee. The increase has to be calculated in a manner that does not decrease the net salary.
Eurofast’s take:
At Eurofast, we help businesses identify affected employees, assess the financial impact of mandatory salary adjustments, implement payroll updates, and ensure full compliance with labour and payroll regulation. Through our payroll and HR advisory services, companies can stay compliant, avoid unnecessary risks, and plan their labour budgets with confidence.
For more information, contact us at [email protected]