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LABOR LAW: EXPLORING SALARY-EXTRAS – BENEFITS THAT CAN BE GRANTED TO EMPLOYEES

LABOR LAW: EXPLORING SALARY-EXTRAS – BENEFITS THAT CAN BE GRANTED TO EMPLOYEES

Last updated: 20 November 2024

Romanian employers can grant to their employees a variety of tickets and vouchers, in compliance with the national legislation. Such salary extras are benefits abiding by differentiated tax regimes and regulated under specific normative acts, being aimed at supporting the employees to cover daily expenses.

Here follows an overview of the main types of tickets and vouchers regulated under the law no. 165/2018 on the granting of value tickets and the Romanian Fiscal Code.

Meal Tickets

  • Granted monthly as individual allowance for the days worked, they can be used to pay for meals or to buy food products;
  • The value of a meal ticket cannot exceed the cap established by the Government (starting with October 1, 2024, the maximum value is of Lei 40.04);
  • The amount corresponding to each ticket granted is transferred each month on an electronic card owned by the employee, depending on the number of days worked;
  • From a tax perspective, the expenses with the meal tickets are deductible for the employers but subject to 10 % tax and a 10% social contribution on the employee’ side.

Gift vouchers

  • Granted occasionally to the employees, these vouchers are deemed social spending and have fiscal deductibility limited to 5 % of the overall amount of salary expenditure;
  • How often they are granted, and their maximum amount are established between the employers and the unions or the company’s representatives, as the case may be;
  • The par value of a gift voucher is of 10 lei or a multiple of 10, but without exceeding 50 lei; • They are not subject to taxation up to 300 lei per occasion (religious holidays, 8th of March, 1st of June). All amounts exceeding the cap are subject to revenue tax and CASS.

Nursery vouchers

  • Granted monthly to the employees not benefitting from parental leave or the parental indemnity granted for the education of children under 2 (under 3 for disabled children);
  • Intended for payment of nursery expenses and deductible from the profit tax;
  • The monthly cap is of 660 lei per child, not subject to revenue tax if the total amount of benefits does not exceed 33 % of the basic salary;
  • The par value of such vouchers is of 10 lei or a multiple of 10, but without exceeding 100 lei.

Cultural vouchers

  • Granted monthly or occasionally for cultural expenses (spectacles, concerts, museums, exhibitions, books etc.);
  • The maximum amount is of 150 lei per month or 300 lei per event;
  • The par value is of 10 lei or a multiple of 10, without exceeding 50 lei.

Holiday vouchers

  • Capped at maximum six gross minimum salaries;
  • Can be used for tourist services with approved tourist operators in Romania;
  • The par value must be a multiple of 10, without exceeding 100 lei and 1-year validity since issuance date;
  • They are subject to a 10% revenue tax and a 10% CASS contribution, withheld at the source by the employer.

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