Starting January 1, 2020, Law No. 263/2019 came into effect, which reverts to the previous taxation method for income earned under part-time employment contracts.

The new law repeals the articles in the Fiscal Code that required these types of income, along with the related health insurance and social security contributions, to be withheld at the level of the minimum wage, if the amount earned under the part-time contract was lower.

Under the new conditions, beginning with the income for January 2020, contributions are again applied to the actual gross income earned by the employee, rather than a higher amount.

Additionally, from this month onwards, new values have been established for:

– The guaranteed gross minimum wage
– The average gross salary used for the state social insurance budget calculation

Keep your team updated with the latest legislative changes in the HR field! For more information on this topic, download Smart Update January No. 1 2020 and share it with your colleagues.