E-invoice – mandatory electronic invoicing system
The “E-invoice – mandatory electronic invoicing system” project was launched with the aim of making tax collection more efficient.READ MORE
From January 1, 2023, according to the Government Decision no. 1,447 of 08.12.2022, the minimum basic salary gross per country guaranteed in payment increases from 2,550 lei to 3,000 lei gross monthly, for a normal working schedule, on average 165.333 hours per month, representing an average of 18.145 lei/hour. This change represents a gross increase of 17.6 % compared to 2022, the net corresponding salary amount will be 1,863 lei compared to 1,524 lei, that is 339 lei net more than it is today. In this context, companies will bear a salary cost of 3,063 lei, compared to 2,607 lei as it is today.
By Government Emergency Ordinance no. 168 of 08.12.2022 it was established the extension, with amendments, of the tax facility on the exemption of taxes for 200 lei from the minimum wage. Practically, 200 lei out of the 3,000 lei will be exempt from taxes (no income tax and social contributions are due) and apply if the employees are fully employed at the place where the basic function is located, in compliance with some conditions provided by the law. The 200 untaxed lei will be taken into account in the calculation of the employees’ pension.
The cumulative conditions to be met for the exemption to apply:
• the level of the monthly gross basic salary established according to the individual employment contract, without including bonuses and other additions, is equal to the level of the gross minimum wage per country guaranteed in payment, in force in the month to which the income is related. Attention – if during the period between the date of entry into force of the Emergency Ordinance and 31 December 2023, the level of the monthly gross basic salary is diminished and established according to the individual employment contract, the exemption cannot be applied;
• the gross income made from salaries and assimilated to salaries, based on the same individual labor contract, for the same month, does not exceed the level of 4,000 lei inclusive.
The amount of 200 lei is reduced depending on:
a) the period of the month in which the monthly basic salary from the individual employment contract is maintained at the level of the minimum gross salary per country guaranteed in payment
b) the date from which new employees are employed at a level of monthly salary equal to the minimum gross salary per country guaranteed in payment
c) the fraction of the month for which the incomes from salaries and assimilated to salaries are determined
d) the date on which the individual employment contract ends
According to the Ministry of Labour, about 2.1 million employees will benefit from the increase in the minimum basic wage to 3.000 lei.
In the agri-food sector, the minimum gross basic salary per country guaranteed in payment remains the same (3000 gross lei) for employees who benefit from the tax exemptions applied to this field since June 2022. The employee without dependents receives a net salary of 2.362 lei. We remind you that the agri-food sector does not pay income tax, health contributions and, optionally, pension pillar II.
By Government Emergency Ordinance no. 168 of 08.12.2022, the agricultural and food industry employees who do not benefit from the specific fiscal facilities in the field specified in Law no. 135/2022, will benefit from the minimum basic salary gross per country guaranteed of 3000 lei gross, with the exemption of fees for 200 lei in case of compliance with the conditions specified above. Thus, the employee in the agri-food sector, without dependants, receives net salary of 1863 lei.
As of January 1, 2023, according to Government Emergency Ordinance no. 168 of 08.12.2022, the minimum gross basic salary per country guaranteed in payment for the construction sector increases from 3.0000 lei to 4,000 lei gross monthly, for normal working hours on average of 165.333 hours per month, representing an average of 24.194 lei/hour. This change represents a gross increase of over 33% compared to 2022. The related net salary will be 3,150 lei compared to 2,362 lei, that is 788 lei net more than it is today.
The increase applies for the period from 1 January 2023 to 31 december 2028. In this context, companies will bear a salary cost of 4,013 lei, compared to 3,010 lei as it is today.
We remind you that the construction sector does not pay the income tax, the health contribution and, optionally, the second pillar of pensions. In the case of construction companies that violate the obligation to increase the minimum wage from 3,000 lei to 4,000 lei from 2023, the tax facilities specific to the salary of the construction sector will be lost, and companies will also be fined with amounts between 300 lei – 2,000 lei for each case.
Increasing the minimum gross basic salary per country always has a boomerang effect for the entire economy, influencing other obligations related to this minimum salary: the contribution for disabled persons not employed, the annual basis for calculating the social insurance contributions for persons earning income from self-employment/intellectual property rights, the range for individuals non-wage income to pay social insurance and health insurance contribution, etc.