G.D. 1/2017, Official Gazette 15 / 06.01.2017
Starting with 1st of January 2017, the minimum gross salary increases from 1.250 RON to 1.450 RON, from 7,53RON/ hour to 8,735 RON / hour, related to an average schedule of 166hours / month
• Our advice
Prepare and sign with the employees an additional agreement to the employment contract regarding the increase of salaries which are smaller than the minimum gross salary and its registration in REVISAL (Electronical Register of the Employees)
Increase of the salaries cost with aprox. 245RON/employee, for the employees paid with minimum salary, respectively with aprox.16%
Government Ordinance no 3/2017, Official Gasette 16/06.01.2017
Starting with 1st of February 2017, the limit of 5 gross average salaries for paying the pension contribution regarding the employees with labor contract is removed.
Will be a negative impact on the employees with a gross salary over 13.406RON. A pension contribution is due for the difference between the gross income and the amount of 13.406RON. The percentage of the pension contribution is 10.5%. The gross average salary at 06.01.2016 is 2.681RON. The gross average salary is established yearly by the Law for social security budget.
Starting with 1st of February 2017 are exempted on salary income tax the employees with fixed term labor contract of 12 months for seasonal activities. The seasonal activities are the activities mentioned at Art.1 from Law no 170/2016 for the bellow NACE – Accommodation and food services:
5510 – “Hotels and similar accommodation”
5520 – “Holiday and other short-stay accommodation”
5530 – “Camping grounds, recreational vehicle parks and trailer parks”
5590 – “Other accommodation”
5610 – “Restaurants and mobile food service activities”
5621 – “Event catering activities”
5629 – “Other food service activities”
5630 – “Beverage serving activities”
Starting with 1st of February 2017, the employees can deduct from the salary income from taxation perspective, the premium and the medical fees subscription, in the limit of a yearly amount of 400EURO.
The above information represents a summary of the recently published information, with no purpose of providing consultancy. FINACO cannot be held responsible because of using the information contained in this document.
For further information, please contact:
Florica Cira | Tax adviser
Calea Turzii 111C, ap.3, Cluj Napoca
Tel: (40) 364 113 331; Fax: (40) 364 113 330