Three big companies to maintain net salaries after tax changes in Romania

Several large companies in Romania announced that they will maintain their employees’ current net wages after the social contributions are fully transferred to employees, on January 1, 2018. These included the retailer Auchan, healthcare provider MedLife and the Romanian Post. Auchan Romania will keep the net salaries of its 10,000 employees after the emergency ordinance amending the fiscal code enters into force. Additionally, the company has increased the polyvalent sales operators’ net wages to over RON 1,900 (EUR 408.7) per month from November 1. MedLife, which is the leader in the local private medical sector, announced that it would maintain the net salaries of its employees as a result of the transfer of social contributions. The company currently has 5,800 employees and collaborators. State-owned Romanian Post, which employs over 25,000 people, also announced that none of the employees will be affected by the transfer of social contributions from January 1, next year, according to the company. Last week, the government passed a series of measures on taxing small and medium-sized companies, income tax and social contributions by amending the Tax Code. Social contributions are transferred from employer to employee, and the income tax drops from 16% to 10% starting January 1 next year. Biggest retailer in Romania reacts to Govt.’s new fiscal measures editor@romania-insider.com