In this issue:

• National minimum gross base salary increased as of 1^st of January 2022. Amendments to the Labor Code

The Government Decision no. 1071/2021 for establishing the national minimum gross base salary (“GD 1071/2021”) was published in the Romanian Official Gazette no. 950 of 5 October 2021.

Government Emergency Ordinance no. 117/2021 for the amendment and completion of Law no. 53/2011, Labor Code (“GEO 117/2021”) was published in the Romanian Official Gazette no. 951 of 5 October 2021.

The following is a summary of the main legislative changes:

National minimum gross base salary increased as of 1^st of January 2022

As of 1 January 2022, the national minimum gross base salary has been increased to RON 2,550/month. There are no longer any different values ​​of the minimum gross base salary depending on higher education and seniority.

Amendments to the Labor Code

The concept of underdeclared work is introduced. It represents the granting of a higher net salary than the one established and reflected in the payroll and in the monthly tax return submitted to the tax authorities.

The period of compensation for overtime work by granting paid free hours was extended from 60 to 90 calendar days.

The following minor offences were introduced:

• Fines from RON 8,000 to 10,000 per employee, without exceeding a cumulative value of RON 100,000, for underdeclared work.
• Fines from RON 10,000 to 15,000 per employee, without exceeding a cumulative value of RON 200,000, for part-time employees who work more than the working time provided in their employment contracts.
• Fines from RON 5,000 to 10,000 per employee for late salary payments exceeding one month. Employers that are subject to Law no. 85/2014 on insolvency and insolvency prevention procedures are exempted.