Romania: legislative developments with immediate business relevance

During last week’s sitting, the Government reviewed in first reading a draft decision to raise the national gross minimum wage to 4,325 RON per month starting July 1, 2026, up from 4,050 RON. The increase is expected to benefit over 1.75 million employees, nearly double the current number receiving minimum wage.

As the increase agreed by the Coalition in December 2025 and was already discussed with the Government’s social partners, we expect this decision to be adopted in a maximum of 2-3 weeks.

Companies employing minimum-wage workers will face higher labour costs, which could affect payroll budgets, especially for small and medium-sized enterprises. Adjustments in wages may also influence hiring strategies and employee retention.

Employers should consider future updates to payroll systems to reflect the new minimum wage, reassess labour budgets, and review employment contracts to ensure compliance with the upcoming change.

The Senate (first chamber) has tacitly approved a legislative proposal allowing Romanian employers to provide tax-deductible support for employees, managers, and directors facing fertility challenges. The bill also increases the deductible limit for social expenses from 5% to 7%, introduces certification for “family-friendly” employers, and aims to enhance companies’ image in the talent market. These measures take effect on January 1, 2027, with implementing norms expected within 30 days. The initiative encourages employers to actively support employees’ family needs while complementing state-provided benefits.

Although tacitly passed by the Senate (in the absence of a proper debate), we expect the Chamber of Deputies to approve the bill, as its initiators belong to the governing coalition holding a parliamentary majority.

If the bill is approved, companies would be able to offer financial support for fertility treatments and family-related benefits in a tax-efficient way, strengthening employer branding and competitiveness in attracting talent. While not mandatory, these incentives create opportunities to enhance employee welfare, improve workplace satisfaction, and reduce turnover.

Businesses should closely monitor the legislative process of this bill and eventually prepare to adjust HR and payroll policies to integrate new deductible benefits, assess eligibility for family-friendly certification, and plan internal communication to highlight the new support measures to employees.

The second legislative proposal tacitly passed last week by the senators allows Romanian employers to make additional contributions to employees’ Pillar II pension accounts, on top of the mandatory 4.75% contribution. Contributions are tax-deductible up to €150 per month per participant, applicable against corporate income tax or microenterprise tax. Also initiated by the Governing coalition’s MPs, the bill aims to enhance the sustainability of the national pension system while supporting employees’ long-term retirement savings

Also initiated by the Governing coalition’s MPs, this bill has great chances of passing the vote of the final chamber, with the deputies being expected to soon receive it in order to start the debates.

Companies would gain a tax-efficient tool to enhance employee benefits and retirement security, strengthening employer attractiveness and retention. While voluntary, these contributions may improve workforce loyalty and financial well-being, indirectly supporting productivity and long-term engagement.

If the law is approved, employers should evaluate payroll and accounting systems to implement voluntary contributions, update benefit policies, and communicate clearly to employees the new retirement savings options to maximize participation and compliance.

Last week, the Ministry of Finance released a draft bill amending the Fiscal-Budgetary Responsibility Law to align Romania with the EU’s 2024 economic governance standards. The law updates public accounting and deficit reporting, strengthens the Fiscal Council’s role in evaluating budgets and providing public advice, and introduces corrective measures if public debt exceeds 60% of GDP. It also requires medium-term budget plans to assess risks from natural disasters and climate change, while enhancing transparency through standardized reporting.

After the 10 days for public debate, the bill shall move forward and be adopted by the Executive. Afterwards, it would be debated in Parliament and, eventually, approved.

The bill does not impose direct obligations on companies but strengthens fiscal discipline and budget transparency, providing a more stable and predictable economic framework. This can increase investor confidence and reduce macroeconomic risks, though deviations in public debt may trigger long-term fiscal adjustments.

Businesses should monitor fiscal policy updates and public reporting changes, evaluate potential implications for investment decisions, and factor in possible long-term adjustments in their financial planning.