Minimum Wage 2025: 3,700 RON — Impact for Employers

Starting January 1, 2025, Romania's gross minimum wage increases to 3,700 RON, as per Government Decision no. 1,447/2024. This raise from 3,300 RON directly impacts employer payroll costs, reporting obligations, and existing employment contracts. In this article, the Geseidl Payroll team details the full impact and compliance steps.

What changes from January 1, 2025

The Government Decision published in the Official Gazette increases the guaranteed gross minimum wage from 3,300 RON to 3,700 RON for a full work schedule averaging 165.333 hours per month. This represents a 12.1% increase, above the estimated 2024 inflation rate.

The increase automatically applies to all individual employment contracts set at the minimum wage level. Employers must update contracts and submit changes to REVISAL within 20 working days.

Full calculation: gross 3,700 RON — net (detailed table)

For an employee with no dependents and no tax exemptions, the net salary calculation from a 3,700 RON gross is as follows:

• Gross salary: 3,700 RON
• CAS (pension — 25%): -925 RON
• CASS (health — 10%): -370 RON
• Income tax (10% of taxable base): -240.50 RON
• NET salary: ~2,164.50 RON

For employees in construction, agriculture, and the food industry, tax exemptions under Fiscal Code art. 60 remain valid, resulting in a significantly higher net salary of approximately 2,775 RON. The basic personal deduction applies per the schedule in art. 77 of the Fiscal Code.

Budget impact for employers (simulation)

The employer's total cost includes the work insurance contribution (CAM) of 2.25%. Thus, the complete cost per minimum-wage employee becomes 3,783.25 RON/month.

• 10 employees: additional monthly cost ~4,832 RON vs 2024
• 50 employees: additional monthly cost ~24,162 RON vs 2024
• 100 employees: additional monthly cost ~48,325 RON vs 2024

These amounts must be included in the 2025 personnel budget. Companies with low profit margins should analyze the impact and consider salary optimization measures — for example, through deductible extra-salary benefits under art. 76 para. (4) of the Fiscal Code.

Addenda and REVISAL obligations

Every employer with employees at the minimum wage must prepare addenda to individual employment contracts. The deadline for submitting changes to REVISAL is no later than the day before the change takes effect, per GD 905/2017.

1. Draft the addendum with the new salary (3,700 RON gross)
2. Obtain the employee's signature on the addendum
3. Submit the change to REVISAL before January 1
4. Update payroll statements and contributions from January

Sectors with differentiated minimum wage

Certain sectors benefit from special regulations: construction (minimum wage of 4,582 RON gross), agriculture and food industry (tax exemptions, not a different wage). Employees with higher education and at least 1 year of experience in the field are entitled to an increased minimum wage.

For construction companies, social contributions are specially regulated by EGO 114/2018, with CAS and CASS exemptions for salaries up to 10,000 RON gross. Checking eligibility by NACE codes (41, 42, 43) is essential.

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