Law no. 283/2024 brings significant amendments to the Labor Code and introduces a clear mechanism for establishing and updating the national gross minimum wage. Complying with these provisions is essential to avoid severe penalties and to ensure a workplace that meets European standards. Are you ready to adapt to the new regulations? Discover what Law no. 283/2024 includes!
Law no. 283/2024
Law No. 283/2024, published in the Official Gazette No. 1139 dated November 14th, 2024, regarding amendments and additions to certain legislative acts for establishing adequate minimum wages, makes the following remarks:
Comment: This law transposes EU Directive 2022/2041 of the European Parliament and Council regarding adequate minimum wages in the European Union, introducing, among other things, substantial changes to the Labor Code (Law No. 53/2003), such as:
Defining the employment relationship as one regulated by law, under which an individual (referred to as a worker) agrees to perform work for and under the authority of another individual or legal entity in exchange for remuneration.
Article 160 is amended and will have the following content:” (1) The salary includes the base salary, allowances, bonuses, and other additions.
(2) The base salary represents the fixed component of gross remuneration paid to an employee for work performed over a calendar month, excluding bonuses, allowances, and other additions.
(3) The minimum gross base salary represents the minimum amount an employee is entitled to for work performed, established by legal acts or applicable collective labor agreements, according to the provisions of Article 162(1).
(4) The guaranteed minimum gross base salary for the country, corresponding to the normal working schedule, is determined annually by government decision in accordance with Article 164, aiming to improve living and working conditions, especially the adequacy of the minimum wage, ensuring a decent standard of living.”
The guaranteed minimum gross base salary for the country, corresponding to the normal working schedule, is established annually by government decision and applied starting January 1st of the following year, updated once annually after consultations with national representatives of trade union and employer confederations. If the normal working schedule is legally less than 8 hours daily, the hourly gross base minimum wage is calculated by dividing the guaranteed minimum gross base salary by the average monthly working hours approved by law.
The procedure for applying the mechanism for determining and updating the guaranteed minimum gross base salary for the country involves evaluating the adequacy of the minimum gross base salary in relation to its proportion in the gross average salary and includes the following:
a) Methods for determining and updating the minimum gross base salary for the country.
b) Criteria for setting and updating the minimum gross base salary for the country, including at least:
The purchasing power of the minimum wage, considering the cost of living.
ii. The general level and distribution of wages.
iii. The rate of wage growth.
iv. National productivity levels and long-term trends.
c) National statistical indicators communicated by the National Institute of Statistics and the National Strategy and Forecast Commission, corresponding to the previously mentioned criteria.
d) A set of annual indicators for monitoring and evaluating the economic and social impact.
e) Methods for conducting support analyses and monitoring the evolution of the guaranteed minimum gross base salary per country in relation to the target proportion of 47%-52% of the gross average salary, considered a reference indicator for assessing adequacy.
The guaranteed minimum gross base salary established by government decision can be granted to an employee for a maximum of 24 months from the date of signing the individual employment contract. After this period, the employee must receive a base salary higher than the guaranteed minimum gross base salary.
The Government may establish, via a decision, an increase in the guaranteed minimum gross base salary differentiated by education level and work experience.
Employers will be required to inform employees about the level of the guaranteed minimum gross base salary for the country.
Non-compliance with legal obligations regarding the guaranteed minimum gross base salary for the country is penalized with fines (increased) ranging from 3,000 to 5,000 RON per individual for whom non-compliance is identified, capped at a cumulative total of 200,000 RON. These fines also apply to employment relationships not based on individual employment contracts, regulated by special laws, where employers must establish and guarantee a remuneration at least equal to the hourly minimum gross base salary set by law or applicable collective labor agreements.
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