Have you wondered how the new tax measures will affect your income, social benefits or costs in your company? And if you are employed, your income will also be modified starting August 1, by increasing prices generated by the VAT increase and by reducing the sick leave allowance. Law no. 141/2025 brings a series of important changes that target both employers and employees, but also individuals with various types of income.
Adopted to strengthen Romania’s long-term financial sustainability, law no. 141/2025 affects key aspects of professional and personal life: health contributions, pension taxation, VAT rates, dividend tax or the method of calculating sick leave.
In the following, we present you with a clear and structured presentation of the most relevant provisions of Law no. 141/2025, so you can understand what actions are required and how to make the necessary adjustments in your personal budget or company strategy.
SOCIAL HEALTH INSURANCE CONTRIBUTIONS FOR PENSIONS
The monthly calculation basis for the social health insurance contribution, in the case of individuals who receive pension income, will be determined by deducting from the pension income the monthly amount of 3,000 lei.
Pension income tax – the monthly taxable income from pensions will be determined by deducting from the pension income the non-taxable amount of 3,000 lei and, where applicable, the social health insurance contribution due (including for pensions obtained from abroad).
ELIMINATION OF CERTAIN INDIVIDUALS FROM PAYING CASS AND THE OPTION OF INSURANCE AGAINST PAYMENT
Several categories of persons are eliminated from the category of individuals exempt from paying the social health insurance contribution (CASS): husbands, wives and parents without income, who are supported by an insured person; persons on accommodation leave or parental leave, monastic staff, persons who benefit from unemployment benefits, etc.
To this, from August 1, those who earn income from salaries will be able to opt for health insurance for their spouse or parent without income by submitting a single declaration for optional insurance of another and paying 10% of six gross minimum salaries (for the year 2025 this translates into a contribution of 2,430 lei per year, payable in two installments).
STANDARD VAT RATE INCREASES TO 21% STARTING AUGUST 1, 2025
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- VAT – Starting August 1, 2025, the standard VAT rate will be increased to 21% (from 19%).
- The reduced VAT rate of 9% will increase to 11% (e.g. Delivery of medicines for human use)
- The reduced VAT rate of 5% will increase to 11% (e.g. Delivery of school textbooks, books, newspapers and magazines, on physical and/or electronic support, access to museums, monuments, zoos and botanical gardens, delivery of firewood to individuals and legal entities, delivery of thermal energy in the cold season for categories of consumers regulated by law, etc.)
- The reduced VAT rate of 9% increases to 21% (e.g. Veterinary medicines, homes with a maximum useful area of 120 sq m and whose value does not exceed 600,000 lei, access to sports events, amusement and recreational parks, exhibitions, cinemas and cultural events, delivery and installation of photovoltaic panels, solar thermal panels, heat pumps and other high-efficiency, low-emission heating systems, etc.)
DIVIDENDED TAX WILL BE 16% STARTING JANUARY 1, 2026
The dividend tax is established by applying a tax rate of 16% on the gross dividend paid to a Romanian legal entity. The dividend tax is declared and paid to the state budget, by the 25th inclusive of the month following the month in which the dividend is paid. These provisions apply to income from dividends distributed starting from January 1, 2026.
SICK LEAVE ALLOWANCE DECREASES
The gross monthly amount of the allowance for temporary incapacity for work caused by common illnesses (code CM 01) or accidents outside work is determined for each episode of illness, as follows:
a) by applying the percentage of 55% (no. reduced from 75%) to the calculation basis for sick leave certificates issued for a period of up to 7 days of temporary incapacity for work;
b) by applying the percentage of 65% (no. reduced from 75%) to the calculation basis for sick leave certificates issued for a period of between 8 and 14 days of temporary incapacity for work;
c) by applying the percentage of 75% to the calculation basis for sick leave certificates issued for a period of over 15 days of temporary incapacity for work.
CHANGES IN EDUCATION: TEACHING HOURS AND ALLOWANCES
Measures are being introduced to increase teaching hours in pre-university education (2-4 hours).
In 2026, state allowances for children will remain at the level granted/due for December 2025.
WHAT CAN YOU DO now?
In the context of these tax changes, as per Law no. 141/2025, it is essential to constantly inform yourself and realistically assess the impact on your personal income or on your company’s activities.
If you are an employer, review your salary policy, calculate the impact of the new VAT rates on prices and budgets, and analyze the options regarding contributions for employees in special situations. Consult with a tax specialist or an accountant to ensure that you are aligned with the new legal requirements.
BIA Human Capital Solutions, the human resources consulting company with a tradition of over 33 years, offers consulting services in human resources, payroll and personnel administration. BIA specialists, including 10 certified experts in labor law, are always up to date with the changes in labor law or tax law so that they can provide all the necessary support to partners.
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