Under the previously proposed provisions, the tax burden on wages could have been shifted entirely to employees. It was to include not only income tax and mandatory health insurance (OMI) contributions, but also mandatory state social insurance (OGSS) contributions.
Specifically, the proposal called for the unification of OGSs rates and the introduction of a single rate of 21% for all categories of employees, including agricultural workers (with the exception of workers employed in jobs with special working conditions, for whom an additional rate of 10% was envisaged). A reduction in the compulsory health insurance (CHI) contribution rate from 9% to 7% was also considered. In the medium term, the plan was to fully fund these obligations from the state budget.
The Ministry of Finance clarified that the public sector wage reform, proposed to take effect on September 1, 2026, applies only to gross wages and does not alter the current tax rules or the social contribution system.
Thus, mandatory payroll deductions will continue to be applied in accordance with the tax and social legislation in effect in 2026.
Sample calculation (approximate) for a gross salary of 10,000 lei:
Gross salary: 10,000 lei
Mandatory health insurance (9%): 900 lei
Taxable income after health insurance deduction: 9,100 lei
Income tax (12%)*: 1,092 lei
Total deductions: 1,992 lei
Net salary: 8,008 lei
Social security contributions (29%), paid by the employer: 2,900 lei
The ministry noted that “the draft is still under discussion.”
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