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April 22, 2021

Romania ranks high in CEE labour taxes’ ranking

Romania claims the second place, after Hungary, in the ranking of Central and Eastern European (CEE) countries with a high taxation level, based on total taxes paid by employers and employees under individual employment contracts, according to an Accace survey organized in November and December in six countries in the region: Romania, the Czech Republic, Hungary, Bulgaria, Poland and Slovakia, a press release informs. A net wage of EUR 1,000 was taken as the reference wage in order to compare taxes due to the state under individual employment contracts in the countries analyzed.  Based on this value, Hungary is the country where the highest contributions are paid – for an employee earning a net wage of EUR 1,000, total costs paid by the employer (to the state and the employee) amount to over EUR 2,000 (207 pc). Romania comes next (182 pc of the net wage), followed by the Czech Republic (181 pc) and Slovakia (180 pc). The top three countries based on contributions paid by the employee are Hungary (60.82 pc), Romania (42.57 pc) and Poland (41.40 pc), while, based on contributions paid by the employer, the top three countries are the Czech Republic (46.58 pc), Hungary (45.83 pc) and Slovakia (45.78 pc). In a ranking of countries based on the total number of contributions (paid by employer and employee), Romania ranks first (10), followed ex aequo by Hungary and Bulgaria (eight). In Romania, the highest contributions are social security and healthcare for the employer and, respectively, the income tax and social contributions for the employee.

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