Another category of employees will benefit from salary tax facilities

According to Law no. 135/2022 published in the Official Gazette of 17.05.2022, starting with the revenues related to June 2022 and until the end of 2028, the minimum gross basic salary per country guaranteed in payment for people working in the fields of agriculture and food industry will be at least 3.000 lei per month, without including allowances, bonuses and other additions.

These employees will benefit from income tax exemption (which is in the rate of 10%), exemption from health contribution (which is in the rate of 10%), reduction in the payment of pension contribution (from 25% to 21,25%, the reduction of 3,75% being fixed the part that goes to the private pension) and the reduction to the payment of the insurance contribution for work (from 2,25% to 0,3375%).

Although they will be exempt from the payment of the health contribution, the employees will be insured in the local health system, including for medical leave and professional risks. Employees will be exempt from the share of the pension contribution for the compulsory private pension, but they will be able to opt for continuing the payment to the private pension through an application submitted to the employer. Periods worked in the agricultural sector and in the food industry constitute a contribution period for determining the right to unemployment benefit and temporary incapacity allowance.

If we take into account the minimum wage of 3.000 lei gross, an employee will take, starting with the incomes related to June 2022, 2.362 lei in hand compared to 1.774 lei in hand before granting these facilities.

In order to benefit from these provisions, employers operating in the agricultural sector and the food industry will have to comply with the following conditions, by 31 December 2028 including:

• to carry out on the territory of Romania activities in the agricultural sector and in the food industry, activities defined by certain CAEN codes specified in this law;
• achieve turnover from agricultural and industrial activities within the limit of at least 80% of the total turnover. For employers established since June 2022, the turnover is calculated cumulatively from the date of registration, and for employers existing on June 1, 2022, the cumulative turnover from the beginning of the year is considered as a basis of calculation.

The measures will apply for gross monthly income between 3.000 and 30.000 lei, for employees who have full-time work (i.e. eight hours a day and 40 hours a week). For amounts exceeding 30.000 lei, the usual salary fees will be calculated and paid.

The facilities are to be applied on the basis of a procedure given by order of the Ministry of Finance, a procedure that must be issued within 30 days of the publication of this law.