Legislation has changed in terms of labor taxation, and the first effects can be seen from November in the IT, construction, agriculture and food industries. Meanwhile, the National Institute of Statistics (INS) showed us wage growth for September.

Therefore, we can get an idea of ​​how much some employees will lose or gain in these areas.

What tax changes have taken place

The Çolak government’s new tax law (L296/2023) contains the following changes to labor taxation, which apply from November 2023:

1. Workers in construction, agriculture and food industry will pay CASS (10%) for salaries up to 10,000 lei

*I am currently only exempt from income tax

2. IT workers are exempt from income tax (10%) and pension contribution up to the second level (3.75%) in the amount of 10,000 lei. Anything over this amount is subject to normal charges.

What are construction salaries and how much will they reach in November

Data from the National Institute of Statistics (INS) show that in September 2023, the average gross salary was approximately 6,018 lei. If we consider this as a salary, it would mean 4,739 lei net.

From November, the employee will receive 4,137 lei. That is, 602 lei less.

The government increased the minimum wage in the industry. The workers who earn more suffer mainly.

What are the salaries in agriculture and the food industry?

According to INS data, in agriculture we are talking about 5,524 lei gross, that is, an employee paid this amount received 4,350 lei.

When he receives his salary in November, he will have 3,798 lei, which is 552 lei less.

As for the food industry, in September the gross volume reached 4,862 lei, i.e. 3,829 lei net.

In November 2023, he would receive 3,343 lei, at the same gross.

What were the IT salaries in September and how will salary changes be reflected

In IT, we are talking about 14,904 lei gross in September, and if we consider this as a salary, it would mean that an employee paid in this way would receive 9,688 lei.

In November, he would have 9,732 lei net. However, if he decides to contribute to pension level II, he will receive less.

*I said we consider them wages because the INS amounts in the network also include benefits offered by the company such as meal vouchers, per diems and more. Therefore, we did not consider net INS, but only gross. The net figures were obtained using Salary calculator.

The given figures are only arithmetical calculations. It matters a lot whether the employer is willing to increase the gross pay (in construction, agriculture and food processing) for workers to maintain their current wages. That is, not to have reductions. We won’t see exactly what decision they made until next year when the INS data comes in. For IT, how many employees will be willing to turn to their employer for second-tier pension contributions, and whether companies will accept a possible pay cut, are of great importance.

In 2028, all current objects will disappear, including IT specialists.

Read also:

ANAF has developed a guide for the taxation of employed IT specialists / Exemption for 10,000 lei, everything else is taxed normally / Objects disappear in a few years