These legislative changes reflect the government’s efforts to address economic challenges and ensure fiscal stability while also aiming to improve the overall well-being of its citizens
At the end of last year, the Romanian government adopted Emergency Ordinance and as a result has implemented, as of 1 January 2025, several significant legislative changes that have impacted various sectors. Find out more below:
Elimination of tax incentives
One of the major changes is the elimination of tax incentives for salary income below RON 10,000 (around 2,010 EUR) in the tech, construction, agriculture, and food industries. This means that these sectors will now be subject to regular taxation, which could have financial implications for both employers and employees.
Adjustments to minimum wage
Additionally, there have been adjustments to the minimum wage in specific industries. For employees in the construction sector, the minimum wage is now set at RON 4,582 (around 921 EUR) while for those in the food and agricultural industry, it is RON 4,0503 (around 814 EUR). These changes aim to standardise wages across different sectors and ensure fair compensation for workers.
Freezing of child allowances and pensions
The government has also decided to freeze child allowances for 2025, meaning that these benefits will no longer be indexed to the average annual rate of inflation. Similarly, Pillar 1 pensions will remain at their 2024 values, with the reference point maintained at 81 lei. These measures are part of broader budgetary constraints aimed at limiting state spending.
Increased dividend tax
Overall, the market trends in Romania for 2025 highlight the importance of adaptability and resilience in the face of economic challenges. By focusing on healthcare, technology, and employee wellbeing, companies can navigate the complexities of the market and seize opportunities for growth and development.
Future legislative projects
Looking ahead, there is a legislative project in the works within the Romanian Parliament regarding the taxation for Private Health Insurance and Pillar 3 Voluntary Pensions. The proposed change aims to increase the tax-free limit for each from 400 EUR/person/year to 1200 EUR/person/year. This proposal has passed the Senate vote and will be debated in the Chamber of Deputies. If passed, it could significantly improve the development of both sectors.
These legislative changes reflect the government’s efforts to address economic challenges and ensure fiscal stability while also aiming to improve the overall well-being of its citizens. Our experts will closely monitor the impact of these changes as they unfold in the coming months. To discuss how they will affect your organisation, get in touch.
Diana Chitu
Practice Leader Health & Benefits
GrECo Romania
T +420 735 175 613
