Romania: legislative developments with immediate business relevance

The Government has approved an increase of the national gross minimum wage from 4,050 RON to 4,325 RON per month, effective 1 July 2026. This raises the hourly rate to 25.949 RON based on a standard 166.667-hour work month. The increase represents a 6.8% rise, or 275 RON gross per month, resulting in a net wage of 2,699 RON for eligible employees. The Decision was already published in the Official Gazette.

Over 1.75 million employees will benefit from the new minimum wage, up from the current 831,382 workers. Employers will face higher labour costs, which may affect payroll budgets, pricing strategies, and overall labour planning, especially in sectors with a high share of minimum-wage workers.

Businesses should update payroll systems to reflect the new wage and hourly rate starting July 2026, adjust employment contracts if needed, and review budget forecasts to account for the increase in labour costs.

During the last sitting, the Government adopted an ordinance introducing measures to strengthen the foreign investment screening framework, shorten environmental assessment procedures and accelerate fire safety approvals. For example, applications for foreign investment screening will be fully digitalized, submitted exclusively through an online platform, while the review fee will be reduced from €10,000 to €5,000. The overall authorization timeline will also be shortened from 125 days to about 60 days. The ordinance also reduces timelines for environmental impact assessment stages and shortens the maximum deadline for issuing fire safety approvals from 21 days to 15 days, while introducing digital submission of documentation and clearer procedures.

The ordinance was already published in the Official Gazette. However, the MPs may amend the provisions, as the ordinance shall soon reach the Parliament for approval. Until then, the provisions apply as they are.

The measures are expected to speed up investment approvals and project permitting in Romania. Foreign investors will benefit from a faster and cheaper investment screening process, while companies developing infrastructure or industrial projects may experience shorter environmental and fire safety authorization timelines. The digitalization of procedures should also reduce administrative burdens and increase transparency in interactions with public authorities.

Companies planning investments in Romania should prepare to use the new digital platforms for submitting investment screening requests and environmental documentation. Businesses involved in construction or project development should also review the updated timelines for environmental and fire safety approvals and ensure their documentation is adapted to electronic submission and the new procedural requirements.

The Government has extended, through a new decision, the state aid scheme to partially compensate the excise on diesel used as motor fuel until 31 December 2026, with payments available for purchases made up to that date and aid disbursed until 30 April 2027. The measure aims to support businesses amid volatile fuel prices caused by geopolitical tensions affecting global energy supply and transport routes. The decision was already published in the Official Gazette.

Companies using diesel for transport, agriculture, construction, or industrial production will benefit from partial excise compensation, reducing fuel costs. The aid rates are set at 0.40 RON/liter (Oct – Dec 2025), 0.65 RON/liter (Jan – Mar 2026), and 0.85 RON/liter (Apr – Dec 2026). This helps protect competitiveness for Romanian operators facing rising energy costs.

Businesses should track eligible diesel purchases and ensure proper documentation to claim the state aid. Companies may also update budgeting and fuel procurement plans to reflect the partial excise compensation and optimize cash flow during the scheme’s validity.

With a 3-month delay, the Government has adopted the 2026 state budget, setting a macroeconomic framework with 1.0% GDP growth, total GDP of 2,045.2 billion RON, and an average net wage increase of 5.5%. The budget aims to ensure fiscal sustainability, support public investment, maintain predictability for businesses, and foster economic recovery. Total revenues are estimated at 736.5 billion RON, expenditures at 864.3 billion RON (42.3% of GDP), with a deficit of 127.7 billion RON (6.2% of GDP). The budget prioritizes investment and EU-funded projects, allocating 164 billion RON to public investments (over 8% of GDP), including 110 billion RON from EU funds for infrastructure, defense, and strategic transport projects

Even though the budget law was agreed by the Governing Coalition, PSD has already admitted it will try to amend the law within the parliamentary debates this week. This means that the final version of the law might look different from this current version.

The focus on infrastructure, energy, and NRRP-supported programs is expected to stimulate demand for goods, services, and construction, benefiting companies involved in these sectors. Measures also maintain predictable taxation and public sector wage policies, providing stability for businesses operating in Romania.

Businesses should monitor public investment opportunities, particularly in infrastructure, energy, and NRRP projects, to identify contracts and funding opportunities. Companies may also align financial planning with projected public spending and wage policies, and explore partnerships in sectors targeted by EU-funded programs or state-supported initiatives.