Romania raises minimum monthly wage to 744 euro

The government also increased the allowance exempt from taxes and social contributions for full-time workers earning the minimum wage, from 200 lei to 300 lei, Constantin said in a live-streamed press briefing.

In January 2024, gross minimum monthly wages in EU member states ranged from 477 euro in Bulgaria to 2,571 euro in Luxembourg, according to Eurostat, the EU's statistical office. Most member states had minimum gross monthly wages less than or equal to 1,000 euro, with only seven exceeding this threshold. Denmark, Italy, Austria, Finland and Sweden have no national minimum wages.

About 760,000 employees earn the minimum wage in Romania, but the hike will benefit over 1.8 million people earning between 3,300 lei and 3,700 lei.

Romania’s decision to increase the minimum wage comes amid efforts to curb the fiscal deficit. The country’s consolidated budget was in deficit equivalent to 3.24% of the gross domestic product (GDP) in the first four months of 2024, widening from a 1.7% budget gap recorded in the same period of 2023, the finance ministry said in a report published in April.

Romania's budget plan for 2024 forecasts a budget gap equivalent to 5% of GDP at the end of the year. However, in February, the International Monetary Fund (IMF) projected a fiscal deficit exceeding 6% of GDP for Romania in the next few years, urging the country to boost its fiscal consolidation efforts.

In March, European Commission officials visiting Bucharest said they were “very concerned” about Romania’s fiscal standing and that they were expecting a further widening of the country’s budget gap.