On 1 January 2019, the Romanian monthly minimum gross wage will increase from RON 1,900 to RON 2,080, and to RON 2,350 for employees with higher education and at least one year of work experience in such a position.
This amendment will also directly impact people earning non-salary income (such as income from freelance activities, intellectual property rights or investments), as the minimum wage is the basis for assessing whether these individuals reach the threshold for paying social security and/or health insurance contributions.
Therefore, the minimum annual income threshold against which social security and health insurance contributions will be due will increase in 2019 as will the amount of these contributions.
It is not yet clear which minimum wage will be applied to this category of taxpayers as a reference.
The increased and differentiated minimum wage was introduced by Romanian Government Decision No. 937/2018 on the establishment of a nationwide minimum gross wage, published in Official Gazette No. 1045 of 10 December 2018.
By Theodor Artenie, Managing Director Tax, Anamaria Tocaci, Tax Manager, Alexandra Barbu, Senior Tax Consultant, Schoenherr