In the Official Gazette no. 797/18.09.2018 was published the Government Decision no. 714/2018 regarding the rights and obligations of the personnel of the public authorities and institutions during the delegation and secondment, as well as in the case of traveling for work purposes. At the date of entering into force of this decision, the Government Decision 1.860/2006 is repealed.
The main change that concerns the private companies is the update of the daily allowance for internal delegation and secondment.
According to this Decision, the daily allowance for delegation and secondment granted to the employees of public authorities and institutions will be increased, starting with January 1st, 2019, from 17 lei to 20 lei.
We remind you that, according with the provisions of the Fiscal Code, the non-taxable daily allowance for delegations and secondment for the employees of private companies is 2.5 times the legal level established for the public sector. Thus, the value of the daily allowance considered non-taxable at the level of the employee will increase from 42.5 lei per day to 50 lei per day. The part of the daily allowance exceeding the non-taxable threshold is considered benefit in kind and is treated as salary income for which income tax and salary taxes are due both by the employee and by the employer.
The daily allowance is granted for each day of delegation and is calculated from the date and hour of departure until the date and hour of return of the means of transport at the working place, each 24 hours representing a day of delegation. In case of delegations that last only one day and also in the last day of delegation, the daily allowance is granted only if the duration is of at least 12 hours.
Delegated or seconded employees have the obligation to obtain on the travel order the confirmation of the delegation (by mentioning the date and hour of departure and return) from the authorized persons of the company where the delegation takes place.
Additionally, we underline that delegation is the temporary exercise by the employee, on employer’s direction, of works or tasks similar to his usual tasks, outside his usual workplace.
We remain at your disposal for any clarifications.
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