Last updated: 30 January 2019
Income tax is 10%, knowing that some category of individuals are exempted from paying tax on income from salaries and assimilated to salaries (ex. software developers).
Moreover; since the 1st of January 2019 a new category of individuals (employees of employers performing activities in the construction industry) are exempted from paying tax on income from salaries and assimilated to salaries, according to Government Emergency Ordinance no. 114/2018. The exemption applies between 01.01.2019 – 31.12.2028, if the following conditions are met:
The employers carry out activities under certain NACE codes (Statistical Classification of Economic Activities in the European Community) stipulated by the Government Emergency Ordinance;
The turnover from these activities represent at least 80 % of the total turnover; the turnover is cumulatively calculated since the beginning of the year, the month in which the exemption is applied included;
The monthly gross income from salary and salary assimilated, obtained based on the individual employment contract is between RON 3,000 and RON 30,000.
The calculation and payment of the tax due by employees will be the same, namely it will be calculated and withheld at source by the employer, who will pay the corresponding amounts directly to the State.
Please find below the table of the social security contributions applicable as of the 1st of January 2019:
(1) This rate includes the 3,75% rate corresponding to the privately-administered pension fund; according the new legal provisions, the person who have contributed to the privately-administered pension fund can opt after a 5 year participation to continue to pay or not their 3,75% contribution to that fund or to direct the contribution to the public pension fund. Take note that in the specific case of employees of employers performing activities in the construction industry the CAS rate Is reduced by 3,75% resulting in a 21,25% rate between 01.01.2019 to 31.12.2019.
(2) As of the 1st of January 2018, for employees working in specific and special conditions, employees have to pay a CAS contribution amounting to 4%, respectively 8% of the gross income obtained by the employee.
(3) Employers performing activities in the construction industry must pay a contribution amounting to 15 % of the standard work insurance contribution (2,25%).
In addition, please also note that from 1st of January 2019, the guaranteed gross minimum salary at the national level increased from RON 1,900 (around 413 €) to RON 2,080 (around 452 €) and respectively RON 2,350 (around 510 €) for a full-time job for employees hired for positions requiring higher education, having a seniority of at least one year in the field. Moreover, the Government Emergency Ordinance no. 114/2018 introduced the minimum gross base salary at the national level of RON 3,000 (around 652 €) for the employees of the employers carrying out activities in the construction industry (construction; manufacturing of construction materials, architecture, engineering or technical consulting, etc.).
Please take note that some numbers presented above can change after the approval by the Parliament of the budget law and the state social security budget.