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NNDKP Employment Flash No.3/2024 – Latest News in the Labor Law Field

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The Government Decision no. 598/2024 for establishing the minimum gross base salary at national level was published on June 6, 2024, in the Official Gazette Part I no. 529.

Thus, starting 1st of July 2024, the minimum gross base salary at national level, guaranteed for payment, not including bonuses and other allowances, will be of RON 3,700 per month, for a normal working schedule averaging 168.000 hours per month, i.e. RON 22.024/hour.

Failure to comply with the provisions regarding the payment of the minimum gross base salary is sanctioned with fines ranging from RON 300 to RON 2,000.

Furthermore, it is a criminal offense and is sanctioned with imprisonment from one month to one year or with a criminal fine the act of a person who repeatedly sets salaries below the legally mandated minimum gross base salary for employees hired under an individual employment agreement.

Note that Directive (EU) 2022/2041 on adequate minimum wages in the European Union must be transposed into national legislation by November 15, 2024. According to this Directive, the method of determining the minimum gross base salary will change.

Thus, the minimum gross base salary will be determined based on a clear calculation mechanism, considering purchasing power, the level of the average gross salary and labor productivity, according to a press release from the Ministry of Labor and Social Solidarity.

By Roxana Abrasu, Partner, Head of the Employment Practice, NNDKP

NNDKP at a Glance

Nestor Nestor Diculescu Kingston Petersen (NNDKP) is a promoter of business law in Romania with more than 30 years of experience, independently acknowledged as a pioneer of the Romanian legal market.

NNDKP offers full-service and integrated legal and tax advice to companies from diverse industry sectors. For the past three decades, NNDKP lawyers have assisted corporations, financial institutions, private equity funds and local entrepreneurs in landmark deals and projects in Romania, contributing to the evolution of the Romanian business environment, including in innovative and niche economic sectors.

NNDKP’s team brings together knowledgeable, talented and dedicated lawyers and tax advisors active in Romania, with an impressive track record that reflects a mix of industry insights, courtroom experience and practical business sense. Over 120 lawyers & tax & IP counsellors and 50+ business support professionals form one of the largest and most respected teams of independent professional services providers in Romania. We are on the ground where needed, working either from our headquarters in Bucharest or from our regional offices in Timisoara and Cluj-Napoca – major cities and important economic, academic and social hubs in Romania.

NNDKP provides assistance in virtually all areas of practice including Advertising, Banking & Finance, Capital Markets, Competition and State Aid, Consumer Protection, Corporate / M&A and Commercial, Data Protection, Dispute Resolution, Employment, Energy and Natural Resources, Environment, EU Law, Gaming, Immigration, Insurance and Private Pensions, Intellectual Property, Pharmaceuticals and Healthcare, Infrastructure, Public Procurement and PPP, Real Estate and Construction, Tax and Telecommunications and Media.

Along the years NNDKP has established strong connections with leading international law firms and high-profile professional networks. NNDKP represents Romania in the prestigious international professional alliances Lex Mundi, World Services Group, International Attorneys Club and is a founding member of SEE Legal.

The firm is constantly top ranked in all practice areas by the renowned international guides Chambers & Partners, Legal500 and IFLR 1000. NNDKP is a 6-time winner of the much-coveted “Romania Law Firm of the Year” award at the Chambers Europe Awards gala, in 2022, 2021, 2017, 2013, 2012 and 2009.

Firm’s website: www.nndkp.ro