The majority of Romanians working in construction are already out of the country, 700,000 out of 1.1 million, and phasing out the fiscal allowances enjoyed by the employees in the sector would leave the local working sites with even fewer personnel, according to the Federation of Employers of Construction Companies in Romania (FPSCR), Cursdeguvernare.ro reported.

The elimination of tax incentives in construction will accelerate the emigration trend of specialists in the field, as employees' net wages will decrease, and employers will choose either to pay their workers on the grey/black market or reduce their activity, according to a study conducted by Graphein.

Under the emergency ordinance OUG 114/2018, employees of construction companies can benefit until the end of 2028 from a full waiver on the 10% income tax, a complete waiver on the 10% public health contribution, and a reduced pension contribution (from 25% to 21.25%).

iulian@romania-insider.com

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