From July 1st, 2026, Romanian companies need to update their payroll calculations, as the minimum gross wage will increase. At the moment the minimum salary stands at 4,050 RON (approximatively €777) andby mid-summer it would increase by 275 RON (around €52) reaching a total of 4,325 RON (approximatively€830).
While a 6.8% increase sounds great for full-time employees, these adjustments will bring a couple of implications for companies.
How is this change affecting businesses?
Higher Labour Costs
Employer social security contributions are calculated as a percentage of the gross salary.
This translates into an increase in the statutory minimum which will lead to higher total employment costs for all affected positions.
Wage Compression
When the minimum wage increases, the gap between entry-level salaries and more experienced roles may narrow significantly. Therefore, this might naturally push employers to rethink compensation packages for senior personnel to maintain a fair balance.
Impact on Tax Thresholds
In Romania, the minimum salary is the starting point for many tax thresholds and benefit eligibilities. This change can affect which components of the salary remain tax-exempt.
Eurofast’s Take
To make sure those regulations do not become a financial burden, companies need to plan and prepare in advance. At Eurofast, we are already helping our partners to ensure they are fully compliant and budget-ready for the upcoming changes.
If you have a company and need quick compliance advice, or you want an in-depth look at how those changes will impact your labor costs this year, we are here to help.
For more specific details, reach out to our team in Bucharest at [email protected]