{"id":10283,"date":"2019-01-28T11:58:56","date_gmt":"2019-01-28T08:58:56","guid":{"rendered":"https:\/\/www.kreston.ro\/2020\/06\/09\/six-payroll-changes-for-2019\/"},"modified":"2020-06-09T16:45:13","modified_gmt":"2020-06-09T13:45:13","slug":"six-payroll-changes-for-2019","status":"publish","type":"post","link":"https:\/\/www.kreston.ro\/en\/2019\/01\/28\/six-payroll-changes-for-2019\/","title":{"rendered":"Six payroll changes for 2019"},"content":{"rendered":"

[vc_row][vc_column][vc_column_text]1<\/strong>. Starting on 01.01.2019, according to GD 937\/2018, the minimum gross wage has increased<\/strong> from 1,900 RON to 2,080 RON for a full time employment.<\/p>\n

For the personnel emplyed in positions that require a level of higher education, with a work experience of at least one year in the field, the minimum gross wage will be 2,350 ron for full-time work.<\/p>\n\n\n\n\n\n\n\n\n\n
2018<\/strong><\/td>\n<\/tr>\n
Gross\/ron<\/td>\nNet\/ron<\/td>\nTotal cost for employer\/ron<\/td>\n<\/tr>\n
1.900<\/td>\n1.162<\/td>\n1.943<\/td>\n<\/tr>\n
2019<\/strong><\/td>\n<\/tr>\n
Gross\/ron<\/td>\nNet\/ron<\/td>\nTotal employer expense\/ron<\/td>\nNet difference versus 2018\/ron<\/td>\nCost difference for the employer \/ron<\/td>\n<\/tr>\n
2.080<\/td>\n1.263<\/td>\n2.127<\/td>\n101<\/td>\n184<\/td>\n<\/tr>\n
2.350<\/td>\n1.413<\/td>\n2.403<\/td>\n251<\/td>\n460<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

The deadline for reporting in Revisal the gross minimum wage changes is 20 working days from the date of its effects, hence until 31.01.2019.<\/p>\n

Increasing the minimum wage affects employers with minimum 50 employees especially by increasing the disability fund<\/strong> they pay monthly.<\/p>\n

The disability fund is related to the minimum wage, so with the increase of the minimum wage, the contribution to the disability fund also increases.<\/p>\n

The formula for disability fund is: ((average number of employees * 4%) – number of disabled people employed) * minimum wage.<\/p>\n

2<\/strong>. Starting on 01.01.2019, GEO no. 114\/2018 brings specific salary changes in the field of construction<\/strong>, namely:<\/p>\n

    \n
  • The minimum gross wage is 3,000 RON;<\/li>\n
  • Income from salaries ranging from 3,000 to 30,000 gross, made in the construction sector, are exempt from income tax, provided that 80% of the employer’s turnover is made from activities in constructions included in the specially regulated CAEN codes;<\/li>\n
  • Social security contribution rates (pension contribution) is reduced from 25% to 21.25%<\/li>\n
  • They are exempted from the payment of the contribution to the privately administered pension fund regulated by Law no. 411\/2004;<\/li>\n
  • They are exempted from paying the social health insurance contribution;<\/li>\n
  • Work insurance contribution paid by employer decreases from 2.25% to 0.3375%;<\/li>\n
  • The changes take effect for a period of 10 years, comprised between 01.01.2019 and 31.12.2028.<\/li>\n<\/ul>\n

    Below, we have the difference between a normal 3.000 gross salary and an employee in construction with the minimum wage.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n
    <\/td>\nNormal employee<\/td>\nemployee in construction<\/td>\n<\/tr>\n
    Gross wage (SB)<\/strong><\/td>\n3.000 ron<\/strong><\/td>\n3.000 ron<\/strong><\/td>\n<\/tr>\n
    Pension contribution<\/td>\n= SB*25% = 750 ron<\/td>\n= SB*21.25%<\/strong> = 638 ron<\/td>\n<\/tr>\n
    social health insurance contribution _10%<\/td>\n\u00a0300 ron<\/td>\nexempted<\/strong><\/td>\n<\/tr>\n
    income tax _10%<\/td>\n176 ron<\/td>\nexempted<\/strong><\/td>\n<\/tr>\n
    Net Wage<\/strong><\/td>\n1.774 ron<\/strong><\/td>\n2.362 ron<\/strong><\/td>\n<\/tr>\n
    Work insurance contribution paid by employer<\/td>\n= SB*2.25% =68 ron<\/td>\n= SB*0.3375%<\/strong> =10 ron<\/td>\n<\/tr>\n
    Employer\u2019sTotal cost<\/strong><\/td>\n3.068 ron<\/strong><\/td>\n3.010<\/strong><\/td>\n<\/tr>\n
    Total taxes <\/strong><\/td>\n1.294 ron<\/strong><\/td>\n648 ron<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

     <\/p>\n

    3.<\/strong> Starting on 01.01.2019, GEO no. 114\/2018 brings amendments to the Law 152\/2011 regarding day labourer<\/strong>, namely:<\/p>\n

      \n
    • The maximum number of days one person can perform as a day labourer increases from 90 days to 120 days within one year, regardless of the number of beneficiaries;<\/li>\n
    • One person can perform as a day labourer for the same beneficiary for a maximum of 25 calendar days on a continuous basis. If the activity requires it, the beneficiary will turn the day labourer into an employee with an employment contract for a definite period;<\/li>\n
    • The list of fields that are subject to casual work reduces, namely, the work using day labourer can be done in the following areas:<\/li>\n<\/ul>\n

      – agriculture, hunting and related services – division 01;<\/p>\n

      – silviculture, except for forestry – Division 02;<\/p>\n

      – Fisheries and aquaculture – Division 03.<\/p>\n

      4.<\/strong> Starting on 01.01.2019, GD 714\/2018 establishes the delegation allowance<\/strong>, in the amount of 20 ron \/ day, irrespective of position and of the public authority or institution in which it operates. Hence, the deductible allowance is 50 ron \/ day, ie 2.5 times the legal level established.<\/p>\n

      5.<\/strong> As of 01.01.2019, the social health insurance contribution for IT employees is no longer calculated according to the formula established by GEO no. 3\/2018. GEO no. 3\/2018 was only valid in 2018<\/strong>. So starting 01.01.2019, the only benefit left to IT employees is the exemption from income tax on salaries.<\/p>\n

      6.<\/strong> According to Law 247\/2018, available from 10.11.2018, foreigners<\/strong> may be employed with full-time employment contract and with the minimum gross wage<\/strong> guaranteed by country, and for highly qualified foreigners the salary must be at least twice the average gross salary.<\/strong>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

      [vc_row][vc_column][vc_column_text]1. Starting on 01.01.2019, according to GD 937\/2018, the minimum gross wage has increased from 1,900 RON to 2,080 RON for a full time employment. For the personnel emplyed in positions that require a level of higher education, with a work experience of at least one year in the field, the minimum gross wage will […]<\/p>\n","protected":false},"author":1,"featured_media":14902,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[262],"tags":[408,409,410,301,411,292,412,383],"class_list":["post-10283","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tax-alert-en","tag-constructii-en","tag-delegare-en","tag-diuna-en","tag-handicap-en","tag-minim-en","tag-revisal-en","tag-strain-en","tag-zilier-en"],"featured_image_src":{"landsacpe":["https:\/\/www.kreston.ro\/wp-content\/uploads\/2013\/03\/kreston_romania_news_cover-1140x445.png",1140,445,true],"list":["https:\/\/www.kreston.ro\/wp-content\/uploads\/2013\/03\/kreston_romania_news_cover-463x348.png",463,348,true],"medium":["https:\/\/www.kreston.ro\/wp-content\/uploads\/2013\/03\/kreston_romania_news_cover-300x169.png",300,169,true],"full":["https:\/\/www.kreston.ro\/wp-content\/uploads\/2013\/03\/kreston_romania_news_cover.png",1500,845,false]},"yoast_head":"\nSix payroll changes for 2019 - Kreston Romania<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.kreston.ro\/en\/2019\/01\/28\/six-payroll-changes-for-2019\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Six payroll changes for 2019\" \/>\n<meta property=\"og:description\" content=\"[vc_row][vc_column][vc_column_text]1. Starting on 01.01.2019, according to GD 937\/2018, the minimum gross wage has increased from 1,900 RON to 2,080 RON for a full time employment. 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Starting on 01.01.2019, according to GD 937\/2018, the minimum gross wage has increased from 1,900 RON to 2,080 RON for a full time employment. 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