On May 17, 2022, Law 135/2022 was published in the Official Gazette, which introduced on June 1, 2022, the minimum gross base salary of 3.000 lei per month for employees in the agriculture and food industry, applicable for the period between June 1, 2022- December 31, 2028.
The gross base salary for employees in the agriculture and food industry will benefit from the following tax reductions:
- 10% income tax exemption
- Exemption from the payment of the health contribution (CASS) of 10%
- Decreasing the pension contribution (CAS) from 25% to 21.5%
- Decrease the insurance contribution for work (CAM) from 2.25% to 0.337%
For employees to benefit from legislative changes, employers must meet the following criteria:
A. to carry out activities on the Romanian territory in the agricultural sector and the food industry has one of the following CANE codes:
- CAEN code 01: Agriculture, hunting, and related services
011 – Cultivation of non-perennial plants;
012 – Cultivation of plants from permanent crops;
013 – Cultivation of plants for propagation;
014 – Animal husbandry;
015 – Mixed farm activities (vegetable growing combined with animal husbandry);
016 – Activities auxiliary to agriculture and post-harvest activities;
- CAEN code 10: Food industry;
B. Employers must achieve at least 80% of the total turnover from the activities mentioned above
C. The gross monthly income must not exceed the amount of 30,000 lei. The part of the gross monthly income that exceeds 30,000 lei will not benefit from the fiscal facility.
Our team of professional is available for any clarifications or additional details required in your analysis. The above information represents just a summary of aspects we consider relevant in the recently published legislation. This is not exhaustive disclosure of information and it is not intended to be used as advice on any particular matter. We invite all readers to contact us for further clarification of any specific issue. Argus Audit team and its associates disclaim liability in any action taken by a third party in reliance exclusively on summarized information presented in our publications.