From January 1, 2023, employees may have certain benefits if employers so desire, but this option is not mandatory. In general, if an employer wants to increase wages, he can easily apply the new tax provisions. This applies to employees’ vacations, their lunches, and more recently, gym memberships.

In principle, this is tax-free money within 33% of the employee’s basic salary.

*This applies to the changes introduced by OG 16/2022 and the new law promulgated by the President (regarding gym membership)

HotNews.ro discussed this topic with Cornel Grama, a tax consultant, to explain how this new possibility applies. Please note that at the time of publication, ANAF has not yet updated the Statement 112 that helps apply the benefit (but will likely do so very soon).

“It’s like an employer raising wages without paying taxes,” says Cornel Grama.

According to him, employers can offer, in addition to the basic salary, a number of benefits for which CAS, CASS and tax-free will be paid.

• Therefore, they are tax-free income for the employee. They are grouped into 8 categories and are applied within the monthly amount of 33% of the husband’s basic salary.

Example: the minimum salary is 3000 lei, so 33% is 990 lei. It can also get 990 lei without income tax, without CAS, without CASS from 8 categories, which we will detail below.

Everything you see below represents the statements of tax consultant Cornel Grama.

1. Provisions on mobility, that is, those activities where the workplace is not permanent, so it is somewhere in motion: drivers, sales agents who are away

This item is limited to 2.5 times the statutory allowance for delegation. If the driver concerned moves abroad, the mobility provision is 2.5 multiplied by €35 within the EU. It would be around 87 euros, which is about 400 lei. So, from 990 lei, we already have more than 400 lei.

The rest can be given to other objects.

2. The cost of meals provided by the employer for its own employees

So far it has been with salary advantage ie CAS, tax, CASS. It is now implemented and limited to one food stamp per day. So it’s a maximum of 30 lei. So here it must correspond to this table.

How can he provide it?

Either through its own divisions, that is, if it has a dining room, or through specialized divisions: that is, restaurants, public catering.

The amount for an employee cannot exceed 30 lei/day.

For example, an employee can go “push the tray”. Let’s say the daily menu is 30 lei, he comes with a voucher from there as a justification of the amounts he will receive from the employer. That is, the employer pays for his meals for that day.

3. The cost of rent for housing provided by employers to their own employees.

So far this has also been a salary advantage. It was taxed at a rate of 10%, plus CAS and CASS. Now the employee can receive certain money from the employers, with which he pays the rent, if he rented housing in his own name or in the name of the company. In the second case, the employer can keep the relevant expenses.

Here there is a limit of up to 20% of the minimum basic salary.

That is, 600 lei remain from that rent. That’s how much an employee can receive.

The condition is that the employee (husband, wife) does not have a home in personal ownership in the settlement where he works.

(More about it in the VIDEO)

4. Vacations: vacation of the employee

It is about taking into account travel services or treatment, including transportation, during the vacation period for own employees and their family members. Vacation can be both in the country and abroad.

This is the limit, that is, the annual ceiling for each employee of the average gross salary.

That is, the minimum gross salary that is taken into account for this year is 6,095 lei. So that’s all the worker can get, tax free money, CAS and CASS, but with a cap of 33%/mo.

It is related to the example from the very beginning, that is, within 990 lei (those with higher salaries have a different limit, this is just an example to make it easier for everyone to understand).

What the employer can say: for a summer vacation that maybe costs you 5,000 lei, this month I will give you 800 lei, next month another 800 and so on. This should amount to 990 lei.

The employee comes with a bill for accommodation. The travel agency may also come with an advance invoice so that the employer can justify the amounts they will issue to the employee.

5. Contribution to the pension fund of the faculty within 400 euros per year

It used to be, but now it’s included in the 33% limit, which is 990 in our example.

6. Premiums for health insurance and medical services in the form of a subscription, also within 400 euros per employee/year.

7. Amounts provided to employees who perform remote work

This measure was introduced earlier. He can earn 400 lei/month if he works from home and not in the office.

8. The cost of a subscription to the fitness hall is limited to 400 euros/year.

An employee can go to the gym, sign up for a subscription, and then leave with the bill to the employer. He pays me, but no more than 990 lei/month. Then another 990 lei. He can give 300 lei from this invoice and so on until I reach the maximum value of 400 euros.

*Diurna is not included in all of the above, it is separate

“All of those 8 have to be dismantled to put us at 33%,” Cornel Grama said. Each employer can decide which benefits to apply from all of the above. As Cornel Grama also said: It is as if the employer increased the salary without paying taxes.