Minimum wage rises by 275 RON, but pensioners receive just 119 RON more

Starting 1 July 2026, Romania will introduce a new increase to the gross minimum wage, which will rise to 4,325 RON per month. This 275 RON rise will affect nearly 1.8 million employees across the country, including many older workers who remain in employment.

The real impact on workers' take-home pay is, however, far smaller than it might initially appear. After all mandatory taxes and contributions are deducted, an employee on the minimum wage will receive only approximately 119 RON extra per month.

The state as the primary beneficiary of the increase

Paradoxically, the minimum wage rise brings more money into the state budget than into employees' pockets. For each employment contract at the minimum wage, the state will collect over 150 RON in additional taxes and social contributions — a sum greater than the employee's net gain.

This situation is largely due to the tax-free allowance remaining at just 200 RON, a figure widely considered inadequate in the current economic climate and lower than the amount currently in effect.

Rising costs for employers

For companies employing staff on the minimum wage, costs will increase considerably. The total employment cost per minimum-wage worker will rise by nearly 300 RON per month, which may affect hiring capacity — particularly for older workers seeking part-time positions.

This rise in costs may lead some employers to be more reluctant to take on older workers, or to reduce the number of positions available to this age group.