Starting with the 1st of May 2016 the regulated minimum income in Romania is 1250 ron (Romanian lei) (brutto / before taxes).
This equals to a net pay (also known as take home money or “money in hand”) of approximately 925 lei. Calculated against an average RON/EUR exchange rate of 4.5 lei per Euro, that’s 205 Euro. This kind of income is typically paid monthly (not weekly) for the following type of job categories:
- stated employed functionaries starting with public functionaries in their early years, teachers, nurses and doctors;
- unqualified workers such as the ones in agriculture, construction or even production (factories);
- a similar income could also be experienced by other entry level jobs such as secretaries, janitors, call-center agents, etc;
What does minimum regulated income mean?
It means that if you get employed in Romania with a full time job – that’s 40 hours per week, legally you cannot be paid less than 1250 ron brutto or 925 ron net (in hand). For part time jobs, the pay is also regulated with this amount as the starting point. Example: you work 4 hours a day, then you should not get less than 50% of the income above.
Does this mean that perhaps a teacher (for instance) cannot earn more than this?
No, it doesn’t mean that a teacher employed in the Romanian state system cannot earn more than this. This is the absolute starting point. Each state-job category has its own pay scheme depending on several factors among which the experience and work time in the system is taken into consideration, qualifications, education ,etc. For instance, in the university environment monthly wages can even go up to 2000 Euro for teachers with lots of experience, that have a Doctors degree and teach high-level academic programs.
What other things you must take into consideration?
In order for you to get a 925 ron in hand, your employer actually has to pay 1538 ron, as he has to also pay some of the taxes to the state.
What kind of taxes are there?
There are unemployment taxes, health benefits taxes, risk and accident taxes.
The wages seem low. Is this really how it works?
People in Bucharest enjoy the highest life standards and the highest income in Romania. That means that the above mentioned wages are to be taken into consideration only if you plan to be an employer. Since most of the multinational companies are located in Bucharest, the average income is much higher.