News Flash

January, 2018

Minimum wage increase and social

contributions changes in Romania
starting January 1st, 2018
News Flash I Accace Romania I Minimum wage increase and social contributions changes in Romania

What are the most important changes?

Starting with January 1st, 2018, the national minimum gross basic wage guaranteed to be paid
is RON 1,900 (EUR 407), therefore employers have the obligation to take the necessary measures to
comply with legal requirements.

According to the Government Decision no. 846/2017, the national minimum gross basic salary
guaranteed to be paid is set at RON 1,900 lei per month for a full-time program of 166,666 hours as
average per month in year 2018, representing RON 11.40/hour.

The Romanian Government approved the social contributions transfer from companies
to employees, as of January 1st, 2018
Important social contributions and income tax changes have been approved on November 8 by the
Romanian Government.

Law text has been published, thus details regarding the new provisions to be applicable for all privately
owned companies are known.

Therefore, starting January 2018, the percentage and number of social contributions (previously we had
six contributions) for the companies, have been diminished to just one contribution.

Thus, below contributions valid in 2017 will not be applicable starting 2018.

Company taxes

Unemployment Tax 0.50%

Health Insurance Tax 5.20%

Social Security Tax 15.80%

Risk Fund 0.17%

Guaranty Fund 0.25%

Leaves and allowances 0.85%

Total 22.77%

The solely contribution valid for companies starting January 2018 will be the called
“Labor insurance tax” and will be in percentage of 2.25
In addition, the contributions for the employee were changed, thus below percentages valid in 2017 will no
longer be applicable starting 2018.
News Flash I Accace Romania I Minimum wage increase in Romania starting January 1st 2018

Employee taxes

Unemployment Tax 0.50%

Health Insurance Tax 5.50%

Social Security Tax 10.50%

Income tax 16.00%

Total 32.50%

Starting January 2018, the applicable taxes and percentages valid for employees will be:

Employee taxes

Health Insurance Tax 10.00%

Social Security Tax 25.00%

Income tax 10.00%

Total 45.00%

Please note that our publications have been prepared for general guidance on the matter and do not
represent a customized professional advice.

Furthermore, because the legislation is changing continuously, some of the information may have been
modified after the publication has been released.

THE PROVISIONS OF EMERGENCY ORDINANCE 79/2017 WILL COME INTO FORCE ON 1 JANUARY
2018.
Disclaimer

Please note that our publications have been prepared for general guidance on the matter and do not represent a
customized professional advice. Furthermore, because the legislation is changing continuously, some of the
information may have been modified after the publication has been released. Accace does not take any responsibility
and is not liable for any potential risks or damages caused by taking actions based on the information provided
herein.
News Flash I Accace Romania I Minimum wage increase in Romania starting January 1st 2018

Contact
Maria Condurachi
Payroll Manager
E-Mail: Maria.Condurachi@accace.com
Phone: + 40 314 050 440

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