Romanian construction firms to register up to 28 pct higher costs due to new wage regulation

The Romanian construction companies will register higher costs due to the emergency ordinance 114/2018 addopted by the government at the end of last year, as their wage costs will significantly increase, according to a study released by consultant firm Cromwell Evan Global.

The costs of construction companies will increase with 5 percent up to 28 percent starting from the begining of this year, depending on the number of employees and the share of employees paid with the national minimum wage.

The emergency ordinance 114/2018 has imposed a minimum wage of RON 3,000 in the construction sector from January 1, 2019 but has eliminated some taxes for the wages paid in the sector.

Around 700,000 people work in the construction sector in Romania, according to official data.

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