In this issue:
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Amendments to the Labour Code
Government Emergency Ordinance no. 142/2021 for amending and supplementing several normative acts, including the amendment of Article 164 para. (21) and (22) of Law no. 53/2003 - Labour Code (GEO 142/2021) was published in the Romanian Official Gazette no. 1249 of 30 December 2021 and entered into force as of its publication date.
GEO 142/2021 amends the provisions of the Labour Code on the national minimum gross base salary and establishes new rules as follows:
For individual employment contracts concluded as of 1st of January 2022:
- The national minimum gross base salary may be granted for a maximum period of 24 months from the date when the contract is concluded.
- After the expiry of the 24-month period, the employee will receive a base salary higher than the national minimum gross base salary.
The same rules will apply for the individual employment contracts in progress on the date GEO 142/2021 enters into force, the maximum period for granting the minimum salary being calculated starting with the 1st of January 2022.
Employers have the freedom to decide on the amount of the salary increase at the end of the 24-month period. GEO 142/2021 does not provide for any guidelines in this respect.
Please be reminded that the national minimum gross base salary has been increased as of 1st of January 2022. More details can be found here.
For more information, please contact Băncilă, Diaconu și Asociații SPRL team.
Prepared by:
Ana Flueran - Senior Associate, Băncilă, Diaconu și Asociații SPRL
For additional information, please contact:
Radu Diaconu – Managing Partner, Băncilă, Diaconu și Asociații SPRL
Anca Atanasiu – Managing Associate, Băncilă, Diaconu și Asociații SPRL