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%.
The fund Cultura Face Bine, a national funding mechanism for cultural projects backed by private-sector financing, will begin supporting local cultural organizations in 2026. The fund aims to support grassroots cultural initiatives with a proven impact in their communities and which need resources to continue, develop, or transform their activities. The funding mechanism has been […]
The European Commission (EC) announced on Thursday, December 11, that it is referring Romania to the Court of Justice of the European Union (CJEU) for failing to meet obligations under Ambient Air Quality Directives. According to the Commission, Romania has not ensured that its national air quality monitoring network complies with legally required standards on […]
The Bucharest Court of Appeal (CAB) held an unprecedented press conference on Thursday, December 11, in response to allegations raised in a recent media investigation published by Recorder, with court president Liana Arsenie firmly rejecting the claims. However, at the start of the press event, a judge from within the institution publicly stated that the […]
Romania’s Superior Council of Magistracy (CSM) issued its first response to the Recorder documentary alleging systemic manipulation within the justice system, calling the investigation an amplification of a “campaign to destabilize judicial authority.” The council said on Thursday, December 11, that it will evaluate what measures need to be taken following the report. In a […]
MedLife, Romania’s largest private medical services network, announced on Wednesday, December 10, that it reached a market capitalization of EUR 1 billion on the Bucharest Stock Exchange (BVB). The milestone secures its position as “the most valuable healthcare company” in the country. The achievement came nine years after MedLife’s listing on BVB in December 2016, […]