written by We are bringing the latest Smart Update, regarding amendments for two legislative acts with impact in the fields of labor and tax law:
1. Amendments regarding sick leave
2.Tax incentive for employees investments on the capital market
According to Order No. 521/500/2026, for certificates issued during the period February 1, 2026 – December 31, 2027:
▪️allowances are calculated and paid with a one-day reduction;
▪️days 2–6 of temporary work incapacity are covered by the employer;
▪️thereafter, the allowance is covered by the National Single Health Insurance Fund;
▪️clarifications have been introduced regarding the calculation method of the daily average and the allowance.
Government Emergency Ordinance No. 8/2026 introduces a tax incentive was introduced, applicable starting with income related to March 2026. Under this measure, employees may benefit from a deduction from the salary income tax for amounts paid for the purchase of shares, bonds, and ETFs, within an annual limit of EUR 400 (RON equivalent).
The adoption of GEO no. 8/2026 brings important amendments to the Fiscal Code, particularly concerning the treatment of contributions to occupational pension schemes and pan-European personal pension products.
1. For employer-paid contributions:
▪️ Contributions to occupational pensions are NOT considered taxable income for the employee. Contributions to a voluntary or occupational pension fund are considered income related to the months for which the payment was made;
▪️ They are tax-exempt within the limit of a maximum of 33% of the monthly base salary and up to EUR 400/year/employee;
▪️ These amounts are NOT included in the calculation base for social security contributions (CAS).
2. For employee-paid contributions:
▪️ Contributions to occupational pensions and pan-European products can be deducted from the income tax base (10%);
▪️ The deduction is granted within a limit of EUR 400/year for each category (separately for occupational pensions and pan-European products).
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