Income tax and mandatory social contributions

Applicability
⮚  The tax benefits granted to employees in the IT industries (activity of creating computer programs),
⮚  Construction, and
⮚  The food industry and agriculture are aligned.

Abolished exemptions
⮚  The salary income tax exemption for IT employees is eliminated. Income tax from wages will be calculated only for the amount that exceeds RON 10,000.
⮚  The exemption from paying the social health insurance contribution and the contribution for special and special working conditions for employees in construction, the food industry, and agriculture is eliminated.
⮚  The payment of the reduced labor insurance contribution rate (CAM) is eliminated.
⮚  The possibility of applying tax facilities for income earned from several employers at the same time is eliminated, they can only be applied to the workplace where the employees’ basic function is located.

Validity
⮚  These provisions shall apply from 1 November 2023, are standardized for all these three sectors, and their applicability is limited in time, namely until December 31, 2028.
⮚  The Tripartite National Council, which also includes trade union confederations and employers, approved in the meeting on October 27, 2023, the increase of the minimum wage in construction and agriculture to RON 4,582 gross and RON 3,436, respectively.