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The law on setting European minimum wages, approved by the Government

by AI | 25.Jun 2024 | Europe in brief AI

The Government of Romania approved the Law on setting European minimum wages, which ensures the transposition into national legislation of the European directive on adequate minimum wages in the European Union. The European minimum wage is also provided for in the National Recovery and Resilience Plan.

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Bucharest – The Romanian Government has approved the Law on the establishment of European minimum wages, ensuring the transposition into national legislation of Directive (EU) 2022/2041 of 19 October 2022 of the European Parliament and the Council on adequate minimum wages in the European Union. The normative act establishes a new mechanism and a new formula for calculating the level of the minimum wage at the national level.

The draft law will be submitted to Parliament for debate and adoption in an emergency procedure.

The European minimum wage is an objective assumed by Romania through the National Recovery and Resilience Plan, Milestone 392, according to which the gross minimum wage guaranteed in payment will be established based on an objective mechanism based on a clear formula, in consultation with social partners.

“The gross minimum wage guaranteed in payment will be updated annually depending on the purchasing power, the general level of wages and their distribution, the rate of wage growth and national labor productivity. The adequacy of this minimum income requires that the salary be not less than 50% of the gross average wage. In addition, the draft law strengthens the role of trade unions and employers’ organizations,” said Simona Bucura-Oprescu, Minister of Labor and Social Solidarity, quoted in a press release.

It is also stipulated that Directive (EU) 2022/2041 will apply to all categories of employees, regardless of whether they perform their activity based on a work relationship, special work relationship (mandate contract, management contract, sports activity contract, etc.) or service relationship.

The draft normative act also provides for the adoption of an action plan to promote collective bargaining, to increase employees’ access to collectively negotiated wage rights, and to cover protection through collective labor contracts or collective labor agreements.

Failure to comply with the provisions regarding the guarantee in payment of the minimum gross base salary guaranteed in payment, established by normative act or the minimum salary level established by the applicable collective labor contract, will be sanctioned with a fine from 3,000 lei to 5,000 lei for each person who has not been guaranteed the minimum gross salary in payment. (21.06.2024)