The year 2025 brings a new perspective on the minimum wage in construction. For employees in this sector, this year has seen changes to the minimum wage, which is why it is important for them to be aware of the new provisions of the legislation in force and the rights they can benefit from. Also, all changes to the wage entitlements of the employee must be reflected in the individual employment contract, so that any change in the minimum wage will be the subject of an additional act to the contract.
What does this minimum wage mean in Romania?
The minimum wage in the construction sector refers to the minimum amount that an employer is obliged to pay to workers in this sector who work full time for the employer. This minimum wage may vary according to the specific legislation of each country and the way in which wages are set in the construction industry. It is a protection tool for workers in the sector, ensuring a minimum income and preventing possible abuses.
A balanced minimum wage is essential to maintain stability in the construction sector. Too low a wage can lead to low worker motivation and high staff turnover, while too high a wage can negatively affect cash flow and the ability of construction companies to remain competitive and grow.
Gross wage vs. net wage in Romania
In terminology, there are two types of wages, gross wages and net wages, which generate a difference between the wages owed and the earnings actually received by an employee. Gross pay is the total income due to an employee before any deductions, including basic pay, bonuses and other benefits. Net pay, on the other hand, is the amount the employee actually receives after all taxes, social security contributions and other compulsory deductions have been deducted. In short, gross represents the total amount of the salary, while net refers to the amount available and actually received by the employee after all the amounts needed to pay taxes and duties to the state have been deducted.
What is the minimum wage in Romania?
From January 1, 2025, the gross salary cannot be less than 4,050 lei per month. An employee whose individual employment contract includes a minimum wage in the economy will receive 2,574 lei per month.
In construction, the minimum wage is considerably higher compared to other sectors. As of November 2023, construction workers have received good news: the gross minimum wage has been increased to 4,582 lei. This is calculated for a standard work schedule, which on average entails 165 hours per month, which means an average income of 27.7 lei per hour. At the moment there are no changes approved by normative acts and no draft legislation aiming at changes in the gross minimum wage in the construction sector in 2025.
For employees in this sector, salary deductions are as follows:
Pension contribution (CAS 20.25%) = 928 lei
Health contribution (CASS 10%) = 458 lei
Personal deduction (DP 0%) = 231 lei
Income tax (IV 0%) = 0
Read more about Construction tax facilities 2025.
