Changes have been made to the draft Decree on trains. There are not many changes. The main one concerns the fact that 200 lei, which is tax-free at a minimum salary of 3,000 lei, will be taken into account for the pension, and the other that military pensions will be indexed by an additional 5.1%, which I also presented on Wednesday in another text. It should be approved by the government on Thursday.

The item was also excluded, which provided that, taking into account the difficulties in applying the legislation in the field of financing local transport for students of state pre-university education, it was regulated the possibility of financing these expenses from the amounts in the section of value added tax for the balance of local budgets, within the maximum amount of 40 lei/ month/recipient. In principle, the measure disappeared from the project.

Otherwise, the same provisions as in the original version remain, including the fact that 200 lei is not subject to tax for salaries between 3,000 and 4,000 lei. The problem is that the mentioned conditions do not mean what the authorities really want. Basically, those who currently have, for example, 3100 lei, will not be able to use this service. I described the topic in detail in another article.

However, according to some government sources, this measure will be changed next week. They want to release 200 lei, but for salaries between 3,000 and 5,000 lei, but only if the employers raise salaries by 450 lei. As I said, next week will see if that changes after all.

Train Ordinance project, new version – click to open

We will come up with a new text after it appears on the official monitor.

The main measures of the Decree on the train

• Salaries of state employees next year will increase by 10% compared to the level provided for December 2022.

• As for the salaries of high-ranking persons, they will remain the same.

• The pension score increases from 1,586 to 1,785 lei, i.e. by 12.5%.

• The amount of social assistance for pensioners increases from 1,000 to 1,125 lei.

Assistance to pensioners with an income of less than 3,000 lei

Pensioners with an income of less than 3,000 lei will receive assistance in two parts.

They will receive:

• 1,000 lei, if the monthly income is up to 1,500 lei inclusive;

• 800 lei, if the monthly income is from 1,501 lei to 2,000 lei inclusive;

• 600 lei, if the level of monthly income is from 2,001 lei to 3,000 lei inclusive.

The cash assistance is paid in two installments, in January 2023 and October 2023, respectively, as follows:

• in the amount of 500 lei, if the level of monthly income is up to and including 1,500 lei;

• in the amount of 400 lei, if the level of monthly income is from 1501 lei to 2000 lei inclusive;

• in the amount of 300 lei, if the level of monthly income is from 2,001 lei to 3,000 lei inclusive.

In the case of pensioners who receive a pension in connection with the loss of a breadwinner, financial assistance is assigned to each one separately.

Increases in the budget system will be maintained, additional work will be compensated by time off

The project proposes to continue the application of some measures aimed at limiting expenditures approved in previous years, namely:

• maintaining in 2023 the amount of allowances, allowances, compensations, bonuses and other elements of the labor remuneration system, which are included in the monthly accrued wages, no more than at the level of the amount accrued for December 2022, in terms of staff employment in the same position and to carry out activity under the same conditions;

• in 2023, maintaining the amount of meals at the level set for 2022;

• additional work that is performed over and above the normal length of working hours by employees of the budget sector in managerial and managerial positions, as well as work that is performed on weekly rest days, holidays and other non-working days, within the limits of normal work. variability, compensated only by corresponding free time;

• military personnel, police officers, penitentiary police officers and civilian personnel of state institutions of defense, public order and national security, who carry out activities on days of weekly rest, public holidays and other non-working days, the prescribed rights are granted by the resolution of the legislation effective in June 2017, as follows ensuring the continuation of measures taken in this regard since 2014. These rights must be granted within 3% of the amount of balances of positions/salaries, balances by degrees/salaries, the presence of a professional degree, gradation and balances of orders/salaries of orders at the level of the main customer of the loan. For officers of the penitentiary police, the limit of 3% is set at the level of the centralized budget of the National Administration of Penitentiary Institutions;

• In 2023, awards can be given to athletes and technical teams who have achieved outstanding results in official international and national sports competitions, pupils, students, researchers and teachers who have received distinctions in international Olympiads and international and national competitions in academic disciplines and for teachers , who prepared them, at the expense of budget funds;

Funds of 1,500 lei for nurseries or kindergartens will continue to be suspended

The benefit, according to which taxpayers who made early education expenses, could deduct early education expenses from their income tax, but not more than 1,500 lei/month for each child, will be suspended.

In practice, the suspension is extended.

During the suspension period, expenses for the proper functioning of nurseries and kindergartens managed by taxpayers are considered expenses with a limited deduction (such as those provided for in Article 25 paragraph (3) letter b) of Law no. 227/2015) and is subject to the 5% limit set for them, applied to the cost of staff wages.

200 lei is not taxed to the minimum wage, as well as to those who give up to 4,000 lei

The project also provides for the implementation of a measure regarding 200 lei from the minimum wage as a tax-free amount.

The fiscal regime applies, starting from January 2023 income, in the case of individuals who have an employment wage, excluding allowances and other allowances, at the level of the minimum gross basic wage for the country guaranteed in payment.

The measure applies to employees who carry out activities on the basis of individual employment contracts, employed full-time, in the place where the main function is located, for whom the gross income from wages for the same month does not exceed the level of 4,000 lei, inclusive.

At the same time, among the conditions that must be fulfilled collectively, it is proposed not to reduce the amount of the basic monthly salary established according to the individual labor contract, without taking into account allowances and other additional payments, in the period between the date of entry into force of this extraordinary Government order and December 31, 2023, in order to achieve the level of the gross minimum basic wage per country guaranteed in payment for the application of this fiscal regime.

A new term for electronic cash registers in vending machines

The project provides for the establishment of a new deadline, namely until December 31, 2023, for the provision of electronic fiscal marking devices by business entities of vending machines, which is necessary for the approval of the legal framework, with the help of which the technical and functional specifications of these installed fiscal electronic marking devices, and to take the necessary steps to fulfill the obligation.

Honey pots for preschoolers are postponed

It is proposed to extend until January 1, 2024 the entry into force of the Law on providing bee honey as a food supplement to preschoolers and students in public, private and religious institutions of primary education.

The minimum salary is 4,000 lei in construction

As we know, the construction sector benefits from wage concessions, meaning they don’t pay income tax, health contributions and, optionally, Tier II pensions.

The salary is currently 3,000 lei, but from January 1 it will increase to 4,000 lei for a normal working schedule of 165,333 hours per month on average, which is an average of 24,194 lei/hour.

“In the period from January 1, 2023 to December 31, 2028, for the construction industry, the minimum gross basic salary in each country, guaranteed in payment, will be at least 4,000 lei per month, not including bonuses, allowances and other additional payments for the Normal working schedule in average is 165,333 hours per month,” the document says.

We remind you that benefits are valid up to 10,000 lei.

Assistance to the disabled

In January 2023, compensatory benefits will be granted to persons with disabilities in an exceptional manner.

For adults with disabilities, compensatory assistance is assigned in the following amount:

• in the amount of 368 lei for a person with a severe disability;

• in the amount of 279 lei for a person with a severe form of disability;

• in the amount of 64 lei for a person with moderate disability.

For a disabled child, compensatory assistance is awarded in the following amount:

• in the amount of 316 lei per child with severe health disabilities;

• in the amount of 184 lei for a child with a severe form of disability;

• in the amount of 64 lei for a child with moderate disability.

Compensation assistance is paid to a disabled person, if he is fully capable of action, or to his legal representative established by law.

Other activities:

• The entry into force of the Law on the Formation of the State Inspection of Road Transport Control has been extended until January 1, 2024.

• Payment of special pensions to mayors is suspended until January 1, 2024.

• Regarding sponsorship, in a situation where after submitting the form for redirection of income tax/microenterprise income tax payable for the year for which the redirection was made, it is corrected in the sense of reducing it and the taxpayers redirect an amount greater than the amount , which could be diverted, according to the law, they owe the state budget an additional diverted income tax/microenterprise income tax difference.

• The procedure for determining and ordering the difference of income tax/microenterprise income tax that has been redirected in addition to the amounts that can be redirected is established by the order of the President of ANAF.

• City halls and other credit authorities will be able to make advance payments of up to 50% for cultural projects, shows and concerts.

• The fine remains frozen at 145 lei in 2023.

• Sports tickets for children postponed until 2024 / 6% of GDP for education, new extension