Starting with January 1st, 2018, the national minimum gross basic wage guaranteed to be paid is RON 1,900 (EUR 407), therefore employers have the obligation to take the necessary measures to comply with legal requirements.
According to the Government Decision no. 846/2017, the national minimum gross basic salary guaranteed to be paid is set at RON 1,900 lei per month for a full-time program of 166,666 hours as average per month in year 2018, representing RON 11.40/hour.
The Romanian Government approved the social contributions transfer from companies to employees, as of January 1st 2018
Important social contributions and income tax changes have been approved on November 8 by the Romanian Government.
Law text has been published, thus details regarding the new provisions to be applicable for all privately owned companies are known.
Therefore, starting January 2018, the percentage and number of social contributions (previously we had six contributions) for the companies, have been diminished to just one contribution.
Thus, below contributions valid in 2017 will not be applicable starting 2018.
The solely contribution valid for companies starting January 2018 will be the called “Labor insurance tax” and will be in percentage of 2.25
In addition, the contributions for the employee were changed, thus below percentages valid in 2017 will no longer be applicable starting 2018.
Starting January 2018, the applicable taxes and percentages valid for employees will be:
Please note that our publications have been prepared for general guidance on the matter and do not represent a customized professional advice.
Furthermore, because the legislation is changing continuously, some of the information may have been modified after the publication has been released.