The fiscal system leaves the pockets empty: although Romania has lower labor taxes than the countries in the region, Romanian employees are left with less money at the end of the month. With a gross salary of 1,000 euros, a Romanian employee is left with only 590 euros “in hand” – the lowest amount in five countries.
The Romanian tax system significantly reduces net wages, while other countries such as Poland or the Czech Republic have set labor taxes in a way that leaves more money in the pockets of employees. “Labor taxation must be understood beyond the single quota”, according to Ziarului Financiar.
Romania has lower net salaries compared to other countries in the region, so with a gross salary of 1,000 euros per month, people receive 590 euros “in hand”, the lowest value among the countries in the region analyzed, according to ZF calculations made based on European statistics and with the help of the accace.com salary calculator for European countries.
Romania has lower labor taxes compared to other countries
So, although at first glance it seems that there are lower labor taxes in Romania compared to other countries in the region, at the end of the month, the money Romanian employees have in their pockets is less, and the tax system in each country is responsible for this .
Higher net wages in countries with apparently higher taxes are usually due to the way the tax system prioritizes certain deductions and caps, which lowers the effective burden on the employee.
In other words, taxes rise with income so that low-wage earners end up with more in their pockets at the end of the month.
Source: www.descopera.ro
