The Romanian government has officially approved an increase in the minimum wage, as announced by Petre Florin Manole, the Minister of Labor. This decision, effective from July 1, 2026, raises the gross minimum basic wage to 4,325 lei per month, up from the previous 4,050 lei. "Today, we have unblocked a very important decision for those who work honestly and fairly in Romania," said Manole, emphasizing the significance of this measure for the workforce.

The increase impacts approximately 1.7 million employees and is expected to add more than 500 million lei to the state budget, according to Manole. This decision had been stalled without justification for some time, but has now been resolved, aligning with the efforts of the Social Democratic Party (PSD), which had been advocating for this change since last year.

The new wage excludes any bonuses or additions and is calculated based on a normal work schedule of 166.667 hours per month, resulting in an hourly rate of 25.949 lei. This represents a 6.8% increase from the previous hourly rate of 24.496 lei for 165.334 hours per month.

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The decision to increase the minimum wage is part of a broader strategy to reduce poverty and the risk of social exclusion in Romania. It considers economic factors such as development, productivity, consumer price index (CPI), growth, earnings, and employment. The formula used for the update aligns with European law, specifically the transposed EU Directive 2022/2041, which Romania completed in February 2025.

Under this directive, the minimum wage is set and updated through a specific legal procedure, using forecast inflation and real productivity growth. If the result of this formula is less than 52% of the average gross wage, negotiations are conducted with social partners in the National Tripartite Council for Social Dialogue. The target range for the minimum wage proportion is set between 47% and 52% of the average gross wage.

In related financial news, Dan Armeanu, Vice-President of the Financial Supervisory Authority (ASF), reported that Pillar 2 pension funds exceeded the 2 billion lei threshold in one month. Meanwhile, the National Bank of Romania (BNR) has decided to maintain the key interest rate at 6.5% annually and provided estimates on inflation evolution.

The implementation of the new minimum wage is a milestone in Romania's National Recovery and Resilience Plan (PNRR), specifically achieving Milestone 392, which requires a new objective and systematic mechanism for setting the minimum wage.