Changes to the minimum salary in the agriculture and food industry

Law no. 135/2022 for the amendment and completion of some normative acts (Law 135/2022) was published in the Romanian Official Gazette no. 489 of 17 May 2022 and entered into force on 20 May 2022.

Between 1 June 2022 and 31 December 2028, the national minimum gross base salary for employees in the agricultural and food industry sector will be at least RON 3,000/month (approx. EUR 600/month), excluding allowances, bonuses, and other additions.

The new legal provisions apply only to employees of employers who carry out activities in the industries mentioned above, within the limits of the NACE codes provided for by Law 135/2022.

Employees earning between RON 3,000 and RON 30,000 (approx. EUR 6,000) at employers who carry out activities that meet the above-mentioned conditions and who, by performing these activities, obtain a turnover of at least 80% of the total turnover, also benefit from several tax benefits such as:

• exemption from income tax;
• reduction of the social security contribution by 3.75 percentage points;
• exemption from the payment of social health insurance contributions.

Companies that do not pay the minimum wage can be fined between RON 300 and RON 2,000 (approx. EUR 60-400) and risk having their tax benefits cancelled.

Changes to the general register of employees

Law no. 144/2022 for the amendment and completion of art. 34 of Law no. 53/2003 - The Labour Code was published in the Romanian Official Gazette no. 502 of 23 May 2022 and enters into force on 26 May 2022.

The general register of employees (Revisal) will also include the level and area of study completed.

Employees and former employees will have online access to their data in Revisal. They will also be able to generate online and download an extract from the register, which they can use to prove their seniority in their job and/or speciality.

The Romanian Government will issue a decision establishing the methodology for applying the new provisions. 

New legal provisions on the activity of domestic providers

Law no. 111/2022 on the regulation of the activity of the domestic provider was published in the Romanian Official Gazette no. 402 of 27 April 2022 and will enter into force on 1 January 2024.

The law provides how individuals may carry out household activities in exchange for remuneration in the form of household activity vouchers.

A legal relationship is established between the household provider and the household beneficiary through the agreement of the parties, without having a written form, for the performance of domestic activities. The household provider cannot be a family member.

The value of a household voucher is RON 15. They can be issued in hard copy or in electronic format and can be purchased from the local employment offices. Tickets are not transferable, cannot be used for the purchase of other goods and services, and can be exchanged for money within 12 months of receiving them.

Employers can grant their employees in the form of a bonus, in addition to the basic salary, household activities vouchers, bearing their nominal value. The number and frequency of granting the vouchers shall be determined by the employer together with the trade union or the employees’ representatives.

Employers who have purchased and awarded in one calendar year at least 600 vouchers for the same employee can benefit, on request, from 50 free vouchers to be granted in the following year, for each employee for whom they have purchased and granted the minimum vouchers.

Household vouchers will also benefit from favourable tax treatment.

Regulations on maritime labour

The Government Emergency Ordinance no. 50/2022 on the regulation of labour in the maritime field (GEO 50/2022) was published in the Romanian Official Gazette no. 382 of 19 April 2022 and entered into force on the same date. 

GEO 50/2022 transposes the Council Directive (EU) 2018/131 of 23 January 2018 and aims to guarantee seafarers the right to a safe and secure place of work, the right to fair working conditions, and health and social protection.

GEO 50/2022 applies to all seafarers on board ships flying the Romanian flag, both public or privately owned, and who regularly carry out commercial activities. GEO 50/2022 does not apply, inter alia, to military vessels, fishing vessels, mobile offshore drilling units or vessels sailing in the Romanian inland waters.

The recruitment and placement of seafarers can be done only by seafarers’ supply agencies, authorized according to GEO 50/2022. It is prohibited to charge fees or expenses from seafarers to recruit, place or secure employment.

For Romanian citizens seafarers, GEO 50/2022 sets the minimum content of the individual employment contract, regardless of the flag of the ship. Several obligations are also laid down for ship owners flying the Romanian flag, including:

• normal working time at sea and in port may not exceed 8 hours/day;
• overtime allowance cannot be less than 125% of the minimum base salary or the hourly salary;
• the termination notice is at least 20 working days;
• annual paid leave, calculated based on a minimum of 2.5 calendar days per each month of employment in which they worked, and, proportionally, for months worked incompletely.

GEO 50/2022 also provides the minimum standards for accommodation, rest, and food on board the ship, the shipowners' obligations regarding the protection of health and safety at work on board the ship and measures in the event of death or long-term incapacity of seafarers because of a work accident, occupational disease or risk.

For more information, please contact Băncilă, Diaconu și Asociații SPRL team.

Prepared by:
Olga Malciu -  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