Are you paying overtime in compliance with recent rulings?
If your company’s employees are working overtime to help you achieve a profitable bottom line, you’re in a…
Emergency Ordinance (“DVO 114”) was issued by the Romanian Government December 29, 2018, having massive implications for key economic sectors. DVO 114 introduces a compulsory and substantial increase in the minimum wage and also affords significant tax breaks for certain businesses involved in defined areas of economic activity, such as the construction industry.
New Minimum Salary
In November 2018 the government introduced the possibility of providing a differentiated minimum wage depending on education and age. The general minimum wage has been increased by a government decision which went into effect on January 1, 2019. Two aspects of the minimum wage are particularly important:
Accordingly, companies in the above fields of activity are likely to pay not only construction workers but all their employees, regardless of their function (i.e. cleaners, contractors, etc.) at least RON 3,000.
Tax Break Relief
For the above-mentioned companies and their employees, the following tax exemptions and reductions were introduced between the period of January 01, 2019 and December 31, 2028:
However, these facilities only apply if the company meets the following criteria are met cumulatively: