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The Romanian government announced updates to its EU Blue Card regulations, as well as changes to work permits, including extending validity periods.
Key Points:
Additional Information: As BAL previously reported, the Romanian government recently published its annual quota for workers from outside the European Union, European Economic Area and Switzerland. Authorities issued 100,000 non-EU national work authorization quota spots for 2024 for non-EU/EEA/Swiss nationals, which is the same amount set in 2022 and 2023.
BAL Analysis: The Romanian government is implementing the requirements of Directive (EU) 2021/1883 to restructure and widen the migration possibilities with an EU Blue Card. The complete list of countries that have updated their requirements can be found here. The new immigration initiatives are designed to make it easier for skilled workers to live and work in Romania and will take immediate effect.
This alert has been provided by the BAL Global Practice Group.
Copyright © 2024 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries, please contact copyright@bal.com.
The Romanian government has published its annual quota for workers from outside the European Union, European Economic Area and Switzerland.
Background: Each year, the Romanian government issues a decree that defines the number of quota-subject non-EU/EEA/Swiss workers who can be admitted to be employed locally by Romanian companies. Foreign nationals married to Romanian citizens, part-time student contract workers and government contract workers on projects of economic and strategic importance are exempted from the general work permit requirement,
BAL Analysis: Employers are reminded that exemptions exist for a few worker categories. Companies are encouraged to take note of the quotas and any relevant exemptions and plan their international recruiting and hiring programs accordingly.
IMPACT — MEDIUM
Key Points:
Additional Information: Each year, the Romanian government issues a decree that defines the number of quota-subject non-EU/EEA/Swiss workers who can be admitted to be employed locally by Romanian companies.
BAL Analysis: Employers are reminded that exemptions exist for a number of worker categories. Companies are encouraged to take note of the quotas and any relevant exemptions and plan their international recruiting and hiring programs accordingly.
This alert has been provided by the BAL Global Practice Group. For additional information, please contact berryapplemanleiden@bal.com.
Copyright © 2023 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries, please contact copyright@bal.com.
The Romanian government has published its annual quota for workers from outside the EU, EEA and Switzerland.
This alert has been provided by the BAL Global Practice group. For additional information, please contact berryapplemanleiden@bal.com.
Copyright © 2022 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries, please contact copyright@bal.com.
IMPACT – MEDIUM
What is the change? Romanian authorities have increased minimum salary levels for foreign employees by 33 percent as the country prepares for a new system in which employees, rather than employers, will be responsible for social security costs.
What does the change mean? Effective immediately, the minimum monthly salary for foreign workers on local payroll will be 4,162 Romanian lei (about € 895 or US$1,070). The minimum monthly salary for highly skilled workers (EU Blue Card holders) will be 16,648 lei. The change will apply to all work permit applications filed after or pending as of Jan. 6.
Background: As BAL reported last month, Romania is planning to shift a portion of the tax burden to employees and away from employers as part of a new social security program in 2018. Authorities had previously announced that the domestic minimum wage would increase from 1,450 lei to 1,900 lei per month, an increase of 31 percent. Authorities announced the minimum wage rates for foreign workers this week.
BAL Analysis: The new wages mark a significant increase above 2017 levels. Employers should be sure to take the new wage minimums into account when planning their 2018 budgets. Applications that are not supported by the new wage minimums will be rejected.
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.
Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
What is the change? Romania will increase its overall work permit quota for non-EU/EEA nationals to 7,000 this year, up from 5,500 in 2017.
What does the change mean? The quota increased by 1,000 in the category for local hires/permanent workers and by 500 for assignees/seconded workers. Other categories will have the same quotas as last year.
Background: The overall quota increased compared to the 2017 quota.
BAL Analysis: Employers should factor in the adjustments to the quota numbers when planning for hiring and recruitment in the coming year. The increases in the quota for local hires/permanent workers and for assignees/seconded workers are welcome news, especially after 2017 work permit quotas for these categories were exhausted in November.
What is the change? Romanian authorities are expected to significantly increase minimum salary levels for foreign employees as the country prepares for a new system in which employees, rather than employers, will be chiefly responsible for social security costs.
What does the change mean? Companies should prepare for the likelihood of increased salary minimums.
Background: Romania is planning to shift a portion of the tax burden to employees and away from employers as part of a new social security program in 2018. Authorities recently announced that the domestic minimum wage would increase from 1,450 lei to 1,900 lei per month (from about US$372 to US$488), an increase of 31 percent. This wage is not applicable to most foreign workers, but the wage requirements for foreign workers are also expected to increase. Current wage minimums for foreign workers are 3,131 lei per month for standard work permit holders and secondments and 12,423 lei per month for EU Blue Card holders.
BAL Analysis: Employers should adjust their budgets if necessary to prepare for the likelihood of increased minimum salaries for foreign workers. BAL will alert clients once additional information becomes available.
Copyright © 2017 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
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.
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.
What is the change? The quota on work permits for non-EEA nationals will remain at 5,500 this year.
What does the change mean? While the total quota has not changed from last year, the Romanian government will provide 700 permits in a new intracompany transfer category that was established pursuant to an EU ICT directive. The quota for local hire/permanent workers will drop from 3,500 to 3,000. Some other categories will see more modest adjustments.
Background: The quotas are as follows:
BAL Analysis: Employers should factor in the adjustments to the quota numbers for local hires/permanent workers, ICTs and other categories when planning for hiring and recruitment in the coming year.
What is the change? The quota on work permits for non-EEA nationals will remain at 5,500 this year, the Romanian government has confirmed in the Official Gazette.
What does the change mean? While the total quota has not changed from last year, the quota on seconded workers has been reduced by 200 and added to the quota for local hires.
The 2016 quotas published in the Official Gazette are as follows:
BAL Analysis: Employers should factor in the adjustments to the quota numbers for seconded workers and local hires when planning for hiring and recruitment in the coming year.
Copyright © 2016 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.