Romania – Minimum Wage, Guarantee Gross Minimum Base and Tax Benefit Changes

Minimum Wage

According to Official Gazette, Part I, No.1185/28.11.2024, Romania’s national gross minimum base salary guaranteed in payment is set at RON 4,050/month from RON 3,700/month for standard work schedules, effective from 1 January 2025.

Guaranteed Gross Minimum Base Salary for the Construction and Agro-Food Sectors

The Guaranteed gross minimum base Salary will be in monetary terms, excluding allowances, bonuses and other supplements for a standard work schedule (averaging 165.334 hours per month), effective from 1 January 2025.

• Construction sector: RON 4,582/month, representing an average of RON 27.714/hour;
• Agricultural and food industries: RON 4,050/month, representing an average of RON 24.496/hour.

Tax Benefits

There are 2 updates for tax benefits as below.

Employee in the IT, Construction, Agriculture and Food industries.

Tax benefits granted to employees in the IT, Construction, Agriculture and Food industries are removed.

• Exemption from 10% income tax for a gross salary of up to RON 10,000;
• Reduced Pension contribution rate (CAS) of 20.25% for gross income up to RON 10,000.

Benefit of RON 300

The tax benefit of RON 300 is application is different from

Applicable: Employees who work under an individual labor contract, full-time, at the location where their primary position is located.

Not Applicable: Income tax and is not included in the monthly base for mandatory social security contributions, if the following cumulative conditions are met:

• The gross basic salary established under the individual labor contract, excluding bonuses and other allowances, is equal to the gross national minimum salary guaranteed by the Government’s decision, in force in the month corresponding to the income;
• The gross income from salaries and salary-related benefits, excluding meal vouchers, vacation vouchers, and food allowance, does not exceed 4,300 RON.

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

Mercans Recommends

View PDF

Romania – Minimum Wage, Guarantee Gross Minimum Base and Tax Benefit Changes –1 January 2025

Size

1.69 MB