In 2023, the number of workers receiving the minimum wage increased significantly to reach 1.897 million. In fact, this is a 52% increase compared to December 31 and represents 28% of the total number of employment contracts.

*Dates March 9, 2023

explanation: in order to maintain their microenterprise quality on firms, entrepreneurs had to have an 8-hour worker who earned at least the minimum wage. Otherwise, he would go to the corporate tax (there are other conditions, but this was one of them).

This was also confirmed by Cătălin Ghinăraru, an expert on the labor market: “This obligation to have at least one employee appeared.”

We can also see the impact on the implementation of the January 2023 budget. Income tax revenues increased by 68.5%.

Of the nearly 1.9 million minimum wage workers, 342,678 work in construction. There, the minimum salary is 4,000 lei gross, but without income tax, health care contribution and, if desired, level II pension.

There are also more than 100,000 agricultural and food industry workers who, although they have a minimum wage (3,000 lei), facilities are similar to construction. Therefore, the net worth of an agricultural worker is higher than, for example, a Horeca worker.

“Now the season will begin in which these non-permanent activities in Horeca and agriculture. Let’s see how the labor market will react to the new guaranteed minimum wage. All of these seasonal activities employ many wage earners who earn minimum wage. Here we find a strong concentration or close to it,” said Katalin Ginaru.

In 2022, the number of minimum wage contracts decreased by approximately 250,000. What is the explanation

The number of active minimum wage contracts in 2022 decreased by 16.8% compared to 2021, to 1.24 million, according to data from the Labor Inspectorate. Here we are talking about everyone, that is, about those who are in the construction and food industry, who do not pay income and health tax, and about others. Almost 250,000 people went missing, although opportunities were provided in agriculture and the food industry.

That is, with a salary of up to 3,000 lei, no income tax, contribution to medical care and, if desired, II level of pensions are paid.

The above data shows that the number of workers receiving a minimum wage of 3,000 lei increased by 33% to 412,051, which is affected by agricultural workers.

It should be noted that we are talking only about the minimum wage. In fact, there are more people who do not pay these taxes to the state, because the benefits are calculated for salaries from 3,000 to 10,000 lei. It should be noted that 4,000 – 10,000 lei are currently being discussed for construction.

Why did the number drop in 2022?

“The minimum gross salary guaranteed on payment is applied in many of these activities that have been hit hard by the pandemic, such as Horeca, retail. It is also about fixed-term contracts. Syncope happened here,” Ginaru told us.

In conclusion, he clarified that the shock of the pandemic led to the termination of some contracts, and some fixed-term contracts were not extended.

How much money do minimum wage workers get?

An employee who is paid the minimum wage receives 1,898 lei, i.e. 374 lei more than in 2022 (since there are also OG 16/2022 changes).

For those thinking about a pension, it should be noted that the Train Regulations stipulate that 200 lei, which is tax-free, will be taken into account when calculating points.

Agricultural and food industry workers have 3,000 lei, but significantly more than others

The minimum wage in agriculture has not increased. It remained at the level of 3,000 lei, as in 2022.

It should be noted that income tax, health care contributions and, if desired, level II pensions are not paid in this area.

Thus, an employee in agriculture and food industry receives the amount of 2362 lei.

The minimum wage in the construction industry from January 1, 2023 is 4,000 lei

In construction, the minimum wage was increased to 4,000 lei from 3,000 lei. It should be noted that income tax, contribution to medical care and II level pensions are also not paid here.

Thus, a construction worker who is paid the minimum wage receives 3,150 lei.