Salary minimums raised for foreign employees, assignees

IMPACT – MEDIUM

What is the change? Romania has announced higher salary minimums for foreign workers.

What does the change mean? The average gross monthly salary has been increased to 3,131 Romanian new leu (approximately 693 euros or US$734), up from 2,681 new leu in 2016. EU Blue Card salaries must equal four times that figure, or 12,524 new leu per month.

• Implementation time frame: Immediate. The new minimums took effect Feb. 20.
• Visas/permits affected: Secondments, intracompany transfers, local hires (standard employment), EU Blue Cards.
• Who is affected: Employers hiring and assigning non-EU/EEA nationals in Romania.
• Business impact: Companies should budget for the increased costs of foreign workers.

Background: Employers must meet the average gross monthly salary of 3,131 new leu for permanent workers and assignees. EU Blue Card salaries must equal four times the average gross monthly salary.

Additionally, foreign workers with dependent family members must prove a minimum gross monthly income of 1,450 new leu per month for each dependent (or 1,065 new leu net per month for 12 months if evidenced through bank statements).

BAL Analysis: Employers should budget for the 17-percent increase over last year’s salary thresholds and make sure that their employment contracts and secondment letters reflect the new salary rates.

This alert has been provided by the BAL Global Practice group and our network provider located in Romania. For additional information, please contact your BAL attorney.

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