Wages in Romania in the Current Economic Context

Abstract

The year 2023 brought many changes in the salary system in Romania. These changes concern both the minimum wage in the economy and the way social contributions and payroll tax are calculated. GD no. 1,447/2022 establishes that starting from January 1, 2023, the minimum gross basic salary per country guaranteed in payment will be 3,000 lei per month, for an average work schedule of 165.33 hours per month, representing 18.14 lei /hour. GEO no. 168/2022 establishes that starting from January 1, 2023 for the field of construction, the gross minimum basic salary per country guaranteed in payment is set in money, without including allowances, increments and other additions, at the amount of 4,000 lei per month, for a normal working hours on average of 165.33 hours per month, representing on average 24.19 lei/hour. According to HG 905/2017, salary changes are sent to REVISAL within 20 working days from the date on which it is changed. On the one hand, the system of salary deductions will have two components: the basic personal deduction and the additional personal deduction, granted within the limit of the monthly taxable income achieved, and the number of employees who will be able to benefit from this facility will increase. This change was regulated at the legislative level by means of OG 16/2022 and is applicable starting from January 2023. On the other hand, the same ordinance makes changes to the ceiling for granting certain extra-salary benefits, offered by the employer. In order not to be taxed, these incomes must amount to no more than 33% of the basic salary corresponding to the job held. It is important to note that not all extra-salary benefits that an employer can grant are subject to this ceiling. This article aims to present the changes made in 2023 regarding the salary in Romania, but also a comparative study with the year 2022, as well as an analysis with some European salary systems.