The majority of employees will receive, as of 1 January 2024, a net monthly salary lower than the previous year, following the change in preferential tax treatment for meal vouchers and holiday vouchers, maintain the Deloitte Romania consultants."The end of 2023 has brought a series of unfavourable tax changes for employees and employers in all economic sectors. After the changes aimed at restricting the facilities granted to employees in IT, construction, agriculture and food industry, which came into force on 1 November 2023, other changes followed shortly after, through Ordinance 115/2023, also impacting employees, but also HR departments. The latter include changes to the preferential tax treatment of meal vouchers and holiday vouchers. Therefore, from 2024 onwards, these vouchers will also be included in the calculation basis of the social health insurance contribution (CASS)," says Ana-Maria Hoborici, manager, Outsourced Services Solutions, Deloitte Romania, in an opinion piece.According to the source, prior to 2024, all vouchers regulated by Law 165/2018 on the granting of vouchers, except for gift vouchers, were subject only to income tax (10%), but since the beginning of this year, meal vouchers as well as holiday vouchers are taxed at 10% tax and 10% CASS."As the income tax due in a month is calculated after deducting the social contributions due (CAS and CASS, 35% in total) from the total gross income earned in that month, meal vouchers and holiday vouchers end up being taxed at 19%. Some companies used to offset the income tax due on meal vouchers so that employees' net pay did not drop, but following this legislative change, most have decided not to offset this new contribution (CASS) owed by employees," the analysis adds.As a result, the majority of employees will receive, from 1 January 2024, a net monthly salary lower than the previous year, the source said.
Romania was formally designated the 43rd country to join the US Visa Waiver Program (VWP) on Friday, January 10. According to the Romanian ambassador to Washington, Andrei Muraru, Romanian citizens will be able to travel to the US without the need for a visa starting March 31, 2025. "Romania becomes the first country in the […]
Cluj-Napoca, the city in Romania with some of the highest rents and a fast-growing IT industry, is closer to banning smoking in playgrounds and parks after mayor Emil Boc expressed his support for the measure. The mayor cited the prioritization of public health as the reason behind such a ban. He mentioned that he has […]
Romania's Sibiu County Emergency Clinical Hospital will receive a robotic system to prepare cytostatic drugs needed by cancer patients, along with other equipment, after the County Council obtained funds from the European Regional Development Fund. With an estimated value of EUR 1 million, the "Robotic Composition System for Sterile Preparations of Cytostatic Drugs" is among […]
Romania’s government adopted in its January 10 meeting a decision granting an extra day off to public sector employees at the beginning of May. Thus, Friday, May 2, will be an official day off for public sector workers, linking the legal holiday of May 1 (Labor Day) with the weekend (May 3-4). This...
The Ministry of Environment announced that 2024 was the hottest year in the history of Romania's meteorological records. Red alerts for heat waves began in June of 2024, with the longest consecutive periods of persistent and intense heat waves, six consecutive days, between July 13-18 and August 15-20. "The year 2024 is the hottest year...
Supporters of former presidential candidate Călin Georgescu gathered outside the Parliament Palace in Bucharest, which houses the Constitutional Court, on January 10, demanding a rerun of the second round of the presidential elections. The protest, dubbed "The Great Judicial Union," was initiated by Georgescu, who called on his supporters to challenge the election annulment, as […]
