Law no. 12 of January 20, 2015 amended the Consolidated Law on Labor Law (Law 53/2003, “Codul Muncii”)

The change introduced is very important and concerns Romanian temporary employment agencies and Romanian workers sent to perform their duties in other EU countries.

Previously, taking advantage of the much lower labor costs in Romania compared to other EU countries, domestic temp agencies sent Romanian workers abroad, supplementing their wages with tax-free allowances. The new Law requires Romanian workers sent abroad to supplement their wages with an allowance now subject to taxation.