Only one in ten employers plan to adjust gross pay in the context of the elimination of tax relief for employees in IT, construction and agriculture and expect lower employee motivation and higher staff turnover, according to a survey conducted by PwC Romania, between 14-20 January. ‘Only one in ten employers intend to adjust the gross salary in the context of elimination of tax relief for IT, construction and agriculture employees, and expect a drop in motivation for the employees and higher turnover’ according to the results of the HR Barometre survey made by PwC Romania between 14-20 January 2025. According to the ordinance, adopted at the end of 2024, starting with January 2025 incomes, the tax facilities concerning the exemption from income tax and contributions to privately managed pension funds for employees in the IT, construction and agri-food sectors, previously applicable for gross monthly incomes up to and including RON 10,000, are abolished. For example, in IT the elimination of the exemption from income tax and reintroduction of compulsory contribution to Pillar II pensions lead to monthly losses between 650 and 1.125 lei for those with gross salaries between 10,000 and 20,000 lei. At the same time, two out of ten companies intend to attenuate the impact of the fiscal changes through supplementary benefits or training and personal development programmes. More than half of the interviewees consider that the elimination of the exemption from income tax will lead to reduction of motivation and productivity of the employees, and four out of ten companies consider that personnel turnover will increase among the employees affected by the legislative changes. A third say they did not take any measures until now and 46% did not take any decision. The HR Barometer survey was conducted by PwC Romania between 14 - 20 January 2025, based on information provided by 130 participating companies from IT and Telecom - 22%, Outsourced Services - 17%, Financial Services - 12%, Industrial Products - 10%, Consumer Goods, Distribution - 9%, Retail - 9%, Pharmaceuticals - 7%, Automotive - 7% and Construction - 2%.
Romania has reached a purchasing power per capita of EUR 11,105, approximately 45% below the European average – a figure that places the country in 31st place in the European top, according to the "NIQ Purchasing Power Europe 2025" study. Compared to 2024, Romania moved up one position in the NIQ ranking. Comparatively, at a […]
Ionuț Costea, former head of EximBank, and Sebastian Vlădescu, former finance minister, were released on November 5 following an extraordinary prescription procedure, according to a statement from Romania's High Court of Cassation and Justice (ICCJ). The two had been sentenced in 2023 to six and seven years in prison, respectively, for taking a EUR 5.5 […]
Prime minister Ilie Bolojan, who also serves as president of the Liberal Party (PNL), stated on November 4 that, at the meeting of the party's National Political Bureau the same day, support was renewed for resolving the issue related to special (magistrates') pensions this month, but also for the reform in public administration, according to
Knauf Insulation Romania, the local subsidiary of a division of the German group Knauf, has officially inaugurated its new glass mineral wool factory in Târnăveni, Mureș County, after an investment of EUR 140 million, for which the company also received EUR 18 million in state aid. "Our factory in Târnăveni, equipped with state-of-the-art technology, has […]
Corden BioChem, an expert in industrial biotechnology, could resume production at the bioethanol factory it took over from Swiss Clariant in southern Romania (or "Lesser Wallachia" as indicated by the company) at Podari, after the Competition Council authorised the takeover of the steam and electricity supplier. The company announced on its website that the Podari […]
Romania’s general government budget deficit can drop below 6.5% of GDP next year, possibly approaching 6% of GDP, to further drop below 5% of GDP if the tax evasion and tax avoidance are addressed, the head of the Fiscal Council, Daniel Daianu, said, speaking in a conference organised by Curs de Guvernare, as reported by […]
