SALARY IN ROMANIA
Romania is located in the south-eastern part of Europe. It borders with Ukraine, Moldova, Hungary, Serbia and Bulgaria. It is washed by the waters of the Black Sea in the southeast. Romania has been a member of the European Union since 2007. The population of Romania in 2020 is about 19.2 million people. Unemployment is around 3-4%. The state has low taxes, but also the level of income is significantly lower than in more developed European countries. Let's find out what salaries in Romania in 2020.
Minimum salary in Romania
According to the local government (Decree No. 935/2019), the official minimum wage in Romania in 2020 (from January 1) is 2,230 leu per month, which is equivalent to 540 American dollars. Compared to the previous year, the country's minimum wage was increased by 150 leu per month (7.21%). Since the inflation rate at the end of 2019 was 4%, the purchasing power of Romanian workers increased.
Over the past 5 years, the minimum wage in Romania has increased by 1,255 leu – from 975 leu in 2015, to 2,230 in 2020. That is more than double. For positions requiring higher education, the new minimum wage (gross) for a full-time employee who meets this condition is set at 2,350 leu (about $570). For workers in the construction sector, the minimum gross wage has remained the same at 3,000 leu (about $730).
Average salary in Romania
According to official information from the National Institute of Statistics, the average wage in Romania in 2020 is 5,414 leu per month, equivalent to $1,315. After paying taxes, a Romanian worker has 3,321 leu (about $805) at his or her disposal. The highest salaries in Romania are registered in the information and communication sector (10,289 leu), and the lowest in the accommodation and food sector (2,885 leu).
| Sector of economy | Leu per month | Dollars per month |
| Information and communication | 10,289 | 2,500 |
| Financial and insurance activities | 8,928 | 2 ,170 |
| Public administration and defense | 8,530 | 2,075 |
| Production and supply of electricity and heat, gas, hot water and air conditioning | 7,990 | 1,945 |
| Professional, scientific and technical activities | 7,136 | 1,735 |
| Health care and social work | 6,784 | 1,650 |
| Education | 5,982 | 1,455 |
| Transportation and storage | 5,241 | 1,275 |
| Entertainment and cultural activities | 4,913 | 1,195 |
| Manufacture | 4,901 | 1,190 |
| Real estate operations | 4,687 | 1,140 |
| Wholesale and retail trade | 4,562 | 1,110 |
| Water distribution, waste management | 4,454 | 1,085 |
| Agriculture, forestry and fishery | 4,282 | 1,040 |
| Construction | 4,231 | 1,030 |
| Administrative and auxiliary activities | 4,161 | 1,010 |
| Accommodation and catering | 2,885 | 700 |
| Other service activities | 3,612 | 880 |
Note. The information regarding average wages in Romania by sector is based on the most recent official data of the Romanian National Institute of Statistics.
In conclusion, we note that the income tax rate in Romania is 10%. Along with Bulgaria, this is the lowest rate among all European Union countries.
