Vacation vouchers in Romania are set to be taxed at 20% in 2024, a move that will impact the take-home pay of many employees. While the nominal value of the vouchers has increased from RON 1,450 to RON 1,600, the new taxation will result in a net decrease in the amount employees receive.
Cornelia Popa Stavri, President of the Independent Union of Pre-university Education in Sector 4, explained the impact of the 20% tax on 2024 vacation vouchers. She stated that the vouchers will be subject to both a 10% income tax and a 10% health contribution. This means that "all taxes to the state will be paid similarly to salary income," she told edupedu.ro. Previously, vacation vouchers were only subject to income tax, not the health contribution.
As a result of the new taxation, employees will receive RON 1,280 out of the RON 1,600 nominal value of the vouchers. This means that they will lose RON 25 compared to last year, according to Stiripesurse.ro.
Related: https://www.meowdini.news/post/child-free-vacations-why-they-re-healthy-and-recommended-for-parents
The tax on vacation vouchers is expected to have a negative impact on the disposable income of many employees.This is particularly concerning given the rising cost of living in Romania. The union has called on the government to reconsider the decision to tax vacation vouchers.
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