Minimum wage in Romania: where do we stand in relation to other EU countries?

Romania continues to rank among the European Union countries with the lowest gross minimum wages in the economy, at €604 (approximately RON 3,000) in the second half of 2023 and €743 (approximately RON 3,700) in the second half of 2024, according to the latest infographic published by the Social Monitor, a project of the Friedrich-Ebert- Stiftung Romania. In 2024, our country will be close to the gross minimum wage levels in Bulgaria (€477), Hungary (€675), and Latvia (€700)[1].

Starting January 1, 2025, the gross minimum wage in Romania will increase to 4,050 lei/month, compared to the current 3,700 lei, according to a Government Decision adopted in November 2024. The net minimum wage, i.e., what the employee receives in hand, will be 2,575 lei (515 euros) per month (with the current deduction of 300 lei), 212 lei more than at the end of 2024.

Over the last ten years, Romania has recorded the highest increase in the minimum wage in the European Union, averaging +13.7% per year, followed by Lithuania (+12.3%) and Bulgaria (+10.6%). In July 2024, Romania was in the group of countries with a gross minimum wage of around 1,000 euros (group 2 according to Eurostat data, approximately 5,000 lei) alongside the countries of Central and South-Eastern Europe.

However, the minimum wage in Romania is lower than in other Central and Eastern European countries such as Croatia (€840), Estonia (€820), Lithuania (€924), Poland (€997), and Slovenia (€1,253). At the opposite end of the spectrum, the highest gross minimum wages are recorded in Western European countries such as Luxembourg (€2,570), the Netherlands (€2,134), Ireland (€2,146), Belgium (€2,070), and Germany (€2,054).

Despite constant increases, the net minimum wage remains insufficient to cover the needs of a decent living in Romania. According to updated calculations of the minimum basket for a decent living, carried out by the Friedrich-Ebert-Stiftung in collaboration with Syndex Romania, the value of the minimum consumption basket for September 2024 amounts to 10,450 lei per month for a family of two adults and two children, and 3,972 lei per month for a single adult.

Since joining the European Union and until 2022, Romania has generally ranked second among the countries with the lowest minimum wage in the EU, after Bulgaria. Starting in 2024, there is a slight convergence with the countries of Central and Eastern Europe. However, Romania's minimum wage policy has particularities that disadvantage employees. Currently, the minimum wage is not set according to the industry, level of professional training, or seniority of employees.

Recent data does not provide a clear picture of the sectors in which most minimum wage employees work. However, previous studies that underpinned the 2016 minimum wage policy indicate that these sectors include manufacturing, trade (both wholesale and retail), repair of motor vehicles and motorcycles, hotels, and restaurants. Employees in these areas have been among those most affected by the COVID-19 pandemic, often being the first to be furloughed.

The number of minimum wage employment contracts has increased significantly in recent years. While in 2011 there were approximately 450,000 such contracts, their number has grown steadily, reaching 1.95 million (37% of all contracts) in 2017 and 2.8 million (46%) in 2018. For 2025, the government has estimated that approximately 1.8 million employees will benefit from the minimum wage policy.

Over the past 35 years, the minimum wage policy has strongly influenced Romania's development strategy, but the country has consistently remained among the lowest-ranked in Europe, regardless of economic growth. At the European level, the minimum wage policy is regulated by the European Pillar of Social Rights, Principle 6, which provides for adequate minimum wages for a decent living. In 2022, the Council and the European Parliament adopted Directive (EU) 2022/2041, which aims to improve working conditions in the EU by establishing a common framework for the adequacy of statutory minimum wages.

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Data processing and text design: Delia Bădoi

Infographic: Pascalone Media SRL

[1] The calculation of gross salaries varies from country to country, so it is important to also consult statistics on net earnings, i.e., what employees actually receive. The latest available data on net earnings are from 2023: https://ec.europa.eu/eurostat/databrowser/bookmark/f7ab0203-8e10-4549-8187-b059b7fddc4f?lang=en