LEGISLATIVE NEWSLETTER 5 / 2009

Companies can offer employees vacation tickets of up to 3600 lei per year per person. The government approved, on February 18th, the emergency ordinance regarding the introduction of holiday tickets to a value not exceeding 3600 lei per year for each employee . The law refers only to private employers, and state, and let their discretion to grant employees vacation tickets, depending on budgets.
The normative act stipulates that holiday tickets are borne entirely by the employer and employees the highest level in a year as these tickets will be 6 minimum gross salary per economy. Also, in the law states that they can be used only for payment of holidays in Romania, being a measure to support local tourism.

Advantage for employers is the deductibility of these tickets. In the current crisis, Holiday tickets are a way to motivate employees with lower costs than the first holiday. Amounts corresponding tickets holiday granted by the employer are deductible when calculating taxable profit, and the calculation of income tax, in the ceiling limit of six basic minimum salary gross per year for each employee, and employee are exempt from tax income and social taxes, under the new law. The implementing rules of the emergency ordinance will be approved within the next 15 days. Average gross annual salary is from January 1 in amount of 600 lei.

For a net monthly salary of 3600 lei, the employer pays approximately 1,500 lei in the form of taxes and fees. Consequently, a company with 100 employees offering tickets worth up to 3600 lei all employees will make a saving of 150,000 lei from the situation which would be granted holiday bonuses worth 3600 lei employees.

What the law mentioned about holiday tickets

  • employers decide themselves whether or not to grant tickets holiday employees, depending on the individual tickets
  • granted in a year an employee can not exceed 6 minimum gross salary per economy (3,600 lei)
  • only holidays in Romania, the units authorized Ministry of Tourism, can be paid with tickets vacation
  • value tickets is deductible in calculating the tax, and the calculation of income tax