Feb 28, 2024 3 min read

Romania – Changes in social security & tax effective Jan 2024

The fiscal code has been amended through several normative acts. Effective 1st January 2024, the changes below, are applicable for health insurance as per GEO 115/2023 & 296/2023.

Changes in earnings subject to health insurance (CASS)

Changes in non-taxable earnings

Regarding the non-taxable salary income within the monthly limit of maximum 33% of the basic salary, amendments are provided:

The provisions on the calculation base for the social charges are also amended to exclude from the calculation base, these benefits described above.

Clarification on ceiling for non-taxable daily allowance

Daily allowance (delegation allowance, posting allowance, including the allowance specific to transnational posting, additional benefits received by mobile workers) is exempt within the limit of 2.5 times the legal level established by government decision, for the staff of public authorities and institutions, within the limit of 3 base salaries corresponding to the main workplace.

The ceiling related to the value of 3 base salaries corresponding to the job occupied is calculated as “[(3 times base salary/working days) * allowance days]”.

Changes for IT, construction, agriculture, and food industry sectors’ salaries

Exemptions for IT, construction, agriculture, and food industry activities have been eliminated or reduced.

The facilities specific to all these industries are valid until 31st December 2028. The exemption applies at the place where the basic function is located.

Please contact your Mercans’ services delivery team for any additional information regarding the implications of the above change

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Romania – Changes in Social security & tax effective Jan 2024

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