Salary thresholds increase

IMPACT – LOW

What is the change? Romania has increased its average gross monthly salary for foreign workers.

What does the change mean? The average gross monthly salary has been increased to 2,681 Romanian leu, or RON (approximately €600), up from 2,415 RON in 2015.

• Implementation time frame:  The new rates took effect Dec. 22.
• Visas/permits affected: Secondment,EU Blue Card.
• Who is affected: Employers hiring non-EU/EEA employees and assignees in Romania.
• Business impact: The increase represents a slight increase to labor costs of foreign high-skilled workers and assignees.

Background: Employers must meet the average gross monthly salary of 2,681 RON for permanent workers or assignees. EU Blue Card salaries must equal four times the average gross monthly salary, or 10,724 RON (about €2,400) per month.

BAL Analysis: Employers should make sure 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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