The year 2023 began and nearly ended with a series of legislative changes impacting the human resources field. From changes regarding daily allowances, parental leave and child-rearing allowances, to modifications concerning incomes in the IT sector, employers faced significant challenges throughout this period.
As the year draws to a close, we present a retrospective of the changes impacting the human resources field that occurred over the course of 2023:
1. Gym Memberships Provided to Employees Became Non-Taxable
Starting with income for February 2023, Romanian employers can offer their employees gym memberships as non-taxable income, up to the equivalent of 400 euros annually per person. This facility is based on Law no. 34/2023 amending and supplementing Law no. 227/2015 regarding the Fiscal Code, published in the Official Gazette, Part I no. 36 of January 12, 2023, and effective from January 15, 2023.
2. Increase in Legal Daily Allowance
At the beginning of the year, the amount of the legal daily allowance granted in Romania was changed. Starting April 1, 2023, the legal daily allowance for delegation and secondment to another locality, as well as for business travel, increased to 23 lei/day from the previous 20 lei/day.
3. Changes to the Labor Code and Social Dialogue Law
Starting at the end of May, several amendments to the Labor Code and the Social Dialogue Law came into effect. These include the payment of caregiver leave days, alignment with the new social dialogue law regarding the obligation for collective bargaining for employers with at least 10 employees instead of 21, and initiating collective bargaining with a 15-day calendar period for the employer to convene and organize the first negotiation meeting from the start of the negotiation procedures.
4. Changes to the Obligation of Employers to Hire Disabled Persons
According to a regulation effective from May 26, 2023, it was established that when calculating the percentage of at least 4% of the total number of employees where employers with at least 50 employees are obliged to hire disabled persons, personal assistants of severely disabled persons employed under the law are not included.
5. Changes to the Payroll Archive Period
According to Order no. 1447/2023 amending certain regulations regarding financial-accounting documents, effective from May 24, 2023, the payroll archive period was set at five years.
6. Changes to Parental Leave and Child-Rearing Allowance
From September 19, 2023, several changes regulating parental leave and child-rearing allowance came into effect. These include a 50% increase in the child-rearing allowance for children born from twin, triplet, or multiple pregnancies, as well as for mothers who give birth during their child-rearing leave. Additionally, the level of taxable income a parent on child-rearing leave can earn in a calendar year was increased to eight minimum allowances, up from the previous limit of five allowances.
7. Increase in the National Gross Minimum Wage
Starting in October, the national gross minimum wage guaranteed in payment increased to 3,300 lei per month, up from 3,000 lei per month, according to Decision no. 900/2023, published in the Official Gazette and effective from September 28, 2023. However, this provision does not apply to the agricultural and food industry sectors, where the provisions of art. III of Law no. 135/2022 are applicable.
8. Changes to the Treasury Payment Order
Through Order MF no. 2538/2023 amending and supplementing the methodological norms regarding the use and completion of the Treasury Payment Order (OPT) and the multiple electronic payment order (OPME), approved by Order of the Minister of Public Finance no. 246/2005, several sections of the Treasury Payment Order are completed differently.
9. Changes to Incomes in IT, Construction, and Agri-food Sectors
From November 2023, several changes regarding incomes in the IT, construction, and agri-food sectors began to apply. In the IT sector, the tax exemption applies at the place of the main function, for gross monthly incomes up to 10,000 lei, obtained from salaries and similar incomes by the individual, and the part of the gross monthly income exceeding 10,000 lei does not benefit from tax facilities. Similarly, in the construction and agri-food sectors, the tax exemption applies at the place of the main function for gross monthly incomes from salaries and similar incomes up to 10,000 lei, with the part of the gross monthly income exceeding 10,000 lei not benefiting from tax facilities.
10. New Minimum Wages in Construction, Agriculture, and Food Industry
Starting with incomes for November, in the construction sector, the national gross minimum wage guaranteed in payment was set in cash, excluding allowances, bonuses, and other additions, at 4,582 lei per month for a standard working program averaging 165.333 hours per month, representing an average of 27.714 lei/hour. For the agricultural and food industry sectors, the national gross minimum wage guaranteed in payment was set at 3,436 lei per month, excluding allowances, bonuses, and other additions, for a standard working program averaging 165.333 hours per month, representing an average of 20.782 lei/hour.
11. Changes to Declaration 112
Declaration 112, referring to the obligations to pay social contributions, income tax, and the nominal record of insured persons, underwent changes, and employers must pay close attention to which incomes need to be reported. The new structure of Declaration 112 should be considered for reporting incomes starting with those for November 2023.