Government Emergency Ordinance No. 156/2024, known as the "trenuleț ordinance", was adopted at the end of 2024 and published in the Official Gazette on December 31, 2024. It introduces a series of fiscal-budgetary measures aimed at reducing the budget deficit and ensuring the sustainability of public finances in 2025.
The main provisions of the ordinance include:
1. Freezing salaries and pensions:
• Public sector employee salaries and pensions will remain at the level of November 2024 throughout 2025.
2. Change in dividend tax:
• The tax rate on dividend income was increased from 8% to 10% for dividends distributed starting with 2025.
3. Reforming the microenterprise regime:
• The income threshold for classification as a microenterprise has been reduced to 250,000 euros for 2025 and will decrease to 100,000 euros starting with 2026.
4. Elimination of tax incentives in certain sectors:
• Tax incentives specific to the IT, construction and agriculture sectors have been eliminated, which will lead to changes in the salary and tax structure of these areas.
5. Freezing child allowances:
• State child allowances will remain at the level granted in November 2024 throughout 2025.
6. Suspension of public sector hiring:
• The filling of vacant positions in public institutions is suspended, except for single positions or those for which competitions have already been launched.
7. Changes regarding holiday vouchers:
• Holiday vouchers will not be eliminated, but a mechanism will be introduced through which the state will offer 800 lei, provided that public sector employees contribute another 800 lei.
8. Limiting free travel for students:
• Students will benefit from a reduced fare of 90% for train travel only between their home town and the city where they study.
These measures were adopted in the context of the commitments undertaken by Romania through the National Recovery and Resilience Plan (PNRR) and the recommendations of the Council of the European Union regarding the correction of the excessive budget deficit. The main purpose of the ordinance is to reduce public spending and increase budget revenues in order to ensure the macroeconomic stability of the country.
It is important to note that some of the initially proposed measures were modified or eliminated following consultations with social partners. For example, the governing coalition decided not to reduce the sick leave allowance, which remains at the level of 75%, and to maintain student transport facilities at the previous level.
For a detailed understanding of all the amendments and implications of the ordinance, it is recommended to consult the full text of GEO 156/2024, available in the Official Gazette no. 1334 of December 31, 2024.
