Increase in the basic personal deduction

Effective July 1, 2026, the national minimum gross base salary was increased to 4,325 lei, and this change also affects the basic personal deduction, providing a tax benefit to eligible employees.

In short, the basic personal deduction is an amount that reduces the income tax base. In practice, employees who meet the conditions set forth by law pay less tax and, as a result, can receive a slightly higher net salary.

Under current law, the personal deduction is granted to individuals who earn income from wages, up to a certain level of gross monthly income, and its amount varies depending on the gross wage and the number of dependents.

For employees with no dependents, the basic deduction starts at 20% of the national gross minimum wage. With the increase in the minimum wage to 4,325 lei, the maximum amount of the basic deduction rises to 865 lei, up from the previous 810 lei.

It is important to note that the increase in the personal deduction does not require any additional action on the part of employees. It is applied directly by the employer during payroll processing, provided that the employee meets the eligibility criteria.