Legislative developments in the labor code and work relations sectors

The Government has drafted a decision to increase the national gross minimum basic wage to 4,325 RON per month starting July 1, 2026, based on a full-time schedule of 166.667 hours (25.949 lei/hour). The measure continues the annual adjustment of the statutory minimum wage to reflect economic developments and income policy objectives, ensuring a uniform minimum pay floor across all sectors not covered by higher sectoral minimums. The increase follows the recent trend of stepwise minimum-wage adjustments aimed at supporting purchasing power and income convergence. 

The Government analyzed the draft decision during a meeting, and it could soon be adopted and published in the Official Gazette. 

Employers will face a direct increase in payroll costs for all employees remunerated at or near the minimum wage, including related contributions and salary-linked benefits. The measure may also generate upward pressure on wage scales above the minimum to maintain internal pay differentials. Sectors with labor-intensive operations or a high share of minimum-wage workers—such as retail, manufacturing, construction, and services—are likely to experience the most significant cost impact, potentially affecting pricing, margins, and staffing strategies. At the same time, the announced entry-into-force date provides short-term predictability for budgeting and workforce planning. 

Employers should identify affected employees, update employment contracts and payroll systems to reflect the new minimum threshold from July 1, 2026, recalculate related allowances and benefits, and incorporate the increased labor costs into financial and operational planning.

A legislative proposal establishing a legal framework to prevent burnout through organizational and psychosocial measures at the workplace level, without classifying burnout as a medical diagnosis, could be adopted by the Senate. The initiative places responsibility on employers to inform employees annually about burnout risks and to integrate psychosocial risks into the general occupational risk assessment. Companies with more than 50 employees would be subject to additional obligations, including conducting specific psychosocial risk assessments using tools, adopting an annual prevention plan, and implementing confidential internal reporting mechanisms. The proposal also allows employers to grant paid professional recovery days upon employee request, without medical justification. The Ministry of Labor would publish guidelines, standards, and self-assessment tools within 180 days of entry into force. The law would enter into force 30 days after publication, with a 12-month compliance period for employers. 

The Senate’s Committee for labor will issue a report and, if it is a positive one, the Senate will most likely adopt the proposal, which will then be registered with the Chamber of Deputies as the decisional chamber. 

Employers would face new compliance and organizational obligations, particularly those with over 50 employees, who must implement structured psychosocial risk assessments and formal prevention plans. This may require engaging external specialists, updating occupational health and safety documentation, training HR personnel, and introducing confidential reporting systems. While these measures may generate additional administrative and financial costs, they could also contribute to improved employee well-being, reduced absenteeism, lower turnover, and enhanced productivity over the medium term. The optional introduction of paid recovery days and employer-supported counseling services may further influence workforce management policies and benefit structures. 

Employers should assess current occupational health and safety frameworks, map psychosocial risk management practices, evaluate workforce size thresholds, plan budget allocations for compliance measures, and monitor the publication of ministerial guidelines to implement the required mechanisms within the 12-month transition period.

The legislative framework governing employment stimulation and unemployment insurance could be updated, with a focus on digitalization, simplification, and targeted support for vulnerable groups. The initiative enables the National Agency for Employment (ANOFM) to provide mediation, counseling, and vocational training services online, and eliminates the obligation for unemployed persons to renew their registration every six months, maintaining their status until employment or loss of benefit eligibility. The proposal expands the categories eligible for support by including NEET youth (16–30 years old) and victims of domestic violence among vulnerable groups, raising the age threshold for older unemployed persons from 45 to 50 years, and introducing new eligible categories such as mothers with at least three dependent children and persons who have served custodial or non-custodial sentences. The bill also expands the mixed financing regime (national and European funds) for active employment measures, strengthens support for vulnerable persons as defined by social economy legislation, and provides financial incentives for social insertion enterprises employing such individuals under solidarity contracts that include personalized social accompaniment. Employers in insolvency, bankruptcy, reorganization, or with outstanding non-rescheduled tax debts are excluded from financial support schemes. The Ministry of Labour will update secondary legislation within 60 days of the law’s publication. 

The Government analyzed the draft bill and, after its adoption, will send it to Parliament for debate and adoption before it enters into force. 

Employers may benefit from expanded access to subsidies and financial incentives when hiring from newly defined vulnerable groups, particularly NEET youth and beneficiaries within the social economy framework. The introduction of the stability bonus may support workforce retention in entry-level or hard-to-fill roles, while digitalized ANOFM services could streamline recruitment and interaction with employment authorities. However, companies must ensure compliance with eligibility conditions, including maintaining employment relationships for the required duration and verifying that they meet fiscal and legal criteria to access funding. Social insertion enterprises will face additional operational responsibilities related to solidarity contracts and personalized accompaniment mechanisms. 

Employers should assess eligibility for employment subsidies, review workforce planning strategies in light of the new vulnerable group definitions, prepare documentation and compliance checks for accessing financial incentives, and monitor the adoption of secondary legislation.