Empoyers might be tax exempt if rising low salaries

Romanian Finance minister Gheorghe Pogea considers the possibility to exempt employers from paying the 16% flat tax for any increase of low salaries, that is salaries between 600 and 1,000 Romanian lei, Romanian news agency NewsIn reports.

He said that a first effect of such a measure would be „whitening” salaries paid in the economy as employers would rise salaries in a move which, tax exempt, would not rise costs directly.

Pogea said he would analyze a proposal in this regard, with the acceptance of trade and employers unions, by Monday. The move would affect some 2.5 million Romanian employees with salaries lower than 1,000 lei.