Ordinance no. 16 published in The official monitor from July 15, 2022 brings some important changes in the field payroll, described by SMARTBILL so:

1. Starting with the income related to the month of August 2022, the method of charging part-time contracts is changed. It is about the calculation of the contribution to health and pensions. More precisely, the social insurance contribution and the health contribution owed by natural persons who obtain income from wages or salary-like income, based on an individual full-time or part-time employment contract, cannot be lower than the level of contributions calculated by the application of the related quota (25%-CAS and 10%-CASS) on the gross minimum basic salary per country in force in the month for which the social insurance contribution is due, corresponding to the number of working days in the month in which the contract was active.

2. An income tax exemption is introduced for allowances for the care of patients with oncological diseases - this provision entered into force within 3 days from the date of publication of the Ordinance in the MOF.

3. Starting with the income related to January 2023, a ceiling is introduced on certain benefits that companies can grant to employees. More precisely, the following accumulated monthly income does not represent taxable income in the sense of income tax, within the limit of the monthly ceiling of no more than 33% of the basic salary corresponding to the job held:

  • the additional benefits received by employees based on the mobility clause according to the law, other than those provided in art. 76 para. (2) lit. k), within the limit of 2.5 times the legal level established for the delegation/secondment allowance, by Government decision, for the staff of public authorities and institutions
  • the value of the food provided by the employer for its own employees, natural persons who receive income from wages or salaries (in other situations than the one in which, according to the relevant legislation, it is prohibited to bring food into the premises of the unit), as stipulated in the employment contract or in the internal regulation, within the limit of the maximum value, according to the law, of a meal ticket/person/day, provided on the date of award
  • accommodation and the value of the rent for accommodation/living spaces made available by employers to their own employees, natural persons who earn income from salaries or similar to salaries, as stipulated in the employment contract or in the internal regulations, within the limit of a non-taxable ceiling of 20% from the gross minimum basic salary per country guaranteed in payment/month/person, under the following conditions:
    • the employee, his/her spouse do not own a home in personal ownership or use in the locality where they carry out their activity
    • the accommodation/living space is in own units, including hotel type or in a building rented for this purpose from a third party, by the employer
    • the rental contract between the employer and the third party is concluded in accordance with the law
    • the non-taxable ceiling is granted to one of the spouses, if both spouses work in the same locality, with the same employer or with different employers, based on the declaration on his own responsibility
  • the consideration of tourist and/or treatment services, including transport, during the leave period, for own employees and their family members, granted by the employer, as stipulated in the employment contract, the internal regulations, or received on the basis of special laws and /or financed from the budget, within the limit of an annual ceiling, for each employee, representing the level of an average gross salary used to base the state social insurance budget for the year in which they were granted
  • contributions to a voluntary pension fund according to Law no. 204/2006, with subsequent amendments and additions, and those representing contributions to optional pension schemes, qualified as such in accordance with the legislation on optional pensions by the Financial Supervisory Authority, administered by authorized entities established in member states of the European Union or belonging of the European Economic Area, borne by the employer for its own employees, within the limit of 400 euros per year for each person
  • voluntary health insurance premiums, as well as medical services provided in the form of a subscription, borne by the employer for its own employees, so that at the level of the year the equivalent in lei of the amount of 400 euros is not exceeded, for each person
  • the sums granted to employees who carry out teleworking activities to support utility expenses at the place where the employees carry out their activity, such as electricity, heating, water and data subscriptions, and the purchase of office furniture and equipment, within the limits set by the employer through the employment contract or the internal regulation, within the limit of a monthly ceiling of 400 lei corresponding to the number of days in the month in which the natural person carries out telework activity. 

The order in which the income is included in the monthly ceiling of no more than 33% of the basic salary corresponding to the job occupied is established by the employer.

3. Starting with the revenues related to the month of August 2022, income tax exemption for the construction, agricultural and food production sectors, it no longer applies to incomes up to 30,000 lei, but up to and including 10,000 lei. The part of the monthly gross income that exceeds 10,000 lei no longer benefits from tax facilities.

4. The personal deduction changes starting with the income related to January 2023. There will be a basic personal deduction and an additional personal deduction.

The basic personal deduction is granted to natural persons who have a gross monthly income of up to 2,000 lei above the minimum gross basic salary per country guaranteed in payment approved by Government decision, in force in the month of income realization. In the event that, during the same month, several values of the minimum gross salary per country are used, the lowest value of the minimum gross salary per country is taken into account. The basic personal deduction differs depending on the number of dependents.

The additional personal deduction is granted as follows:

  • 15% from the gross minimum basic salary per country guaranteed in payment for natural persons up to the age of 26, who earn income from wages whose level is up to the level provided above
  • 100 lei per month for each child up to the age of 18, if he is enrolled in an educational institution, to the parent who earns income from wages, regardless of their level

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