According with the Government Decision no. 714/2018 with respect to the rights and obligations of the personnel employed in the public sector, during the delegation in another locality, as well as in the case of the missions, published in the Official Gazette no. 797 from 13.09.2018, new values for internal travel, detachment, and accommodation allowance were established.
The main changes refer to:
– increase for delegation allowance from 17 to 20 RON, regardless of the function performed for the public authority or institution in which the respective employee is working, and
– the accommodation allowance is increased to 230 RON per day (within this limit all the accommodation costs must be covered).
The most recent increase in the amount of allowances for travel and detachment has been enacted more than three years ago.
Starting with January 2019, the non-taxable amount of the daily allowance will increase from 42.5 RON per day, as it is now, to 50 RON per day, for the employers in the private sector.
More precisely, according with the Romanian Fiscal Code, the non-taxable amount of the daily travel allowance, for delegations and detachments within the country, is 2.5 times the legal level established for the state budget, according to the calculation:
20 RON / day x 2,5 = 50 lei / day.
If an employer grants daily allowances exceeding the statutory rate, he is required to pay:
– income tax (10%)
– contributions to pensions (25%)
– health insurance (10%) and
– work insurance (2.5%)
The international limits of daily allowance remain in the limits established by the Government Decision 518/1995.