16
Tue, Jul
48 New Articles

Romania's Minimum Wage Hike will Impact Non-Salary Income

Romania's Minimum Wage Hike will Impact Non-Salary Income

Romania
Typography

On 1 January 2019, the Romanian monthly minimum gross wage will increase from RON 1,900 to RON 2,080, and to RON 2,350 for employees with higher education and at least one year of work experience in such a position.

This amendment will also directly impact people earning non-salary income (such as income from freelance activities, intellectual property rights or investments), as the minimum wage is the basis for assessing whether these individuals reach the threshold for paying social security and/or health insurance contributions.

Therefore, the minimum annual income threshold against which social security and health insurance contributions will be due will increase in 2019 as will the amount of these contributions.

It is not yet clear which minimum wage will be applied to this category of taxpayers as a reference.

The increased and differentiated minimum wage was introduced by Romanian Government Decision No. 937/2018 on the establishment of a nationwide minimum gross wage, published in Official Gazette No. 1045 of 10 December 2018.

By Theodor Artenie, Managing Director Tax, Anamaria Tocaci, Tax Manager, Alexandra Barbu, Senior Tax Consultant, Schoenherr

Romanian Knowledge Partner

MPR Partners | Maravela, Popescu & Roman is an internationally recommended and repeatedly awarded Romanian law firm providing integrated legal, tax advisory and insolvency services in all areas of interest for businesses and public administration. 

MPR Partners | Maravela, Popescu & Roman covers all major Romanian regions as well as the Republic of Moldavia, either directly or through carefully selected and closely coordinated correspondent offices. In addition, the firm has the infrastructure required to coordinate advice in multiple countries through highly reputed international networks of specialists ensuring high end services. 

Firm’s clients (multinational corporations, sound Romanian companies, private investors, public authorities and State companies) recommend MPR Partners | Maravela, Popescu & Roman as “A reliable team providing a high standard of work.” (quote by Chambers and Partners), having consistently endorsed the outstanding quality of services provided, flexible approach, responsiveness as well as the friendly working climate. 

More client feedback and further information on MPR Partners | Maravela, Popescu & Roman can be found at www.mprpartners.com.

All News about MPR Partners | Maravela, Popescu & Roman can be found here.

 

Our Latest Issue