AVERAGE LABOR COSTS
Hourly Labor Costs
In 2020, average hourly labour costs overall* were estimated to be EUR 28.5 in the EU27, ranging from EUR 6.5 to EUR 45.8, according to Eurostat. Overall*, the hourly labor cost in Romania was around EUR 8.1/hour, approx. 3.5 times lower than EU27.
For Member States outside the euro area in 2020, the largest increases in hourly labor costs in the whole economy, expressed in national currency, with the largest increases recorded in Hungary (+7.9%), Bulgaria (+7.8%), Czechia (+7.4%) and Romania (+7.2%).
Looking through sectoral lens, Romania recorded in 2020 the second lowest labor costs in the EU27, well below the EU27 average in all activity sectors.
In 2020, the average hourly labor cost in industry was EUR 7.3 (3.9 times lower than the average EU27 of EUR 28.8); in construction sector it was EUR 6.2 (4.1 times lower than the average EU27 of EUR 25.6); in services it was EUR 8.3 (approx. 3.4 times lower than the average EU27 of EUR 28.2) and in business economy it was EUR 7.7 (approx. 3.7 times lower than the average EU27 of EUR 28.2).
* in the whole economy (excluding agriculture and public administration)
Average hourly labour costs in 2020, Romania vs EU27 (EUR)
Source : Eurostat, March 2020
Note: Labour cost (compensation of employees plus taxes minus subsidies)
Minimum Monthly Gross Wage
In terms of gross minimum wage in economy, Romania has the third lowest minimum wage in EU27 with EUR 458/month, after Bulgaria (EUR 332/month) and Hungary (EUR 442/month), according to Eurostat (February 2021).
Starting with January 2021, the minimum monthly gross wage* in Romania is RON 2,300/ month (EUR 458/month).
For employees with at least one year of experience in a field requiring higher education, the minimum monthly gross wage* is RON 2,350/month.
In the construction sector, the guaranteed minimum gross wage of RON 3,000/month will apply until December 31, 2028.
* The national minimum wage corresponds to the normal work schedule, with an average monthly full-time schedule of 169.333 hours, not including bonuses or other additional payments.
Minimum monthly gross wage in EU27 Member States (January 2021)
Note: Denmark, Italy, Cyprus, Austria, Finland and Sweden: no national minimum wage
Source : Eurostat, February 2021