Garcia Calavera

How are taxes and salaries in Romania compared to the west?

How do taxes in Romania compare with those in the West, is it true that we pay more and earn less than those in France, UK or Germany? Let’s see:

  • England, UK, average annual salary £ 31,300 (€ 37,250). The first £ 12570 earned are not taxed. Only from what you earn over 12 thousand, up to 50270, 20% tax is taken by the British government. If one of the partners earns less than 12570 per year, the other has a tax reduction. National minimum wage: £ 9.5 per hour (€ 11.3), or roughly £ 1600 per month;
UK income taxes
  • France, EU – the average annual salary in 2021 was € 39,300. The first € 10084 are not taxed, from what is over 10 thousand to 25710, 11% is taken, and from what is over 25 thousand to 73 thousand, 30% is taken by the French government. In France, the tax is calculated on the combined income of the family, each adult is considered as a unit, and each child as a half of unit. So, if you have a family consisting of 2 adults and one child, and only one of the partners works, his annual income will be divided by 2.5, and then it is observed where he falls within the tax grid. It’s quite possible that he ends up paying no taxes at all. The national minimum wage in France is € 10.25 per hour, or about € 1763 per month;
France income taxes
  • Germany, EU – in 2021 the average annual salary was € 49,200. The first € 9984 are not taxed, from what is earned over this, there is a progressive tax between 14% to 42% in the case of those who earn up to € 58596. The German tax system takes into account if you have children and if you are the only breadwinner in the house. The employee who brings in the money alone and has children, will pay between 8 and 16% less taxes than the single one. The minimum wage in the economy is € 9.82 per hour, ie about € 1690 per month (From October 2022, this will be raised to € 12 per);
Germany income tax
  • Romania, EU – in 2021 the average annual salary was 74844 RON (15121 €). The entire salary is taxed at 41.5% regardless of whether you are married or have children. Almost half of the salary goes to the state, one of the highest percentages in Europe. An employee who earns a national average salary remains after taxes with a net income of € 780 per month. The national minimum wage is 14.8 Lei (3 €) per hour before taxes. After the government takes 41.5% taxes, you are left with 8.9 lei (1.8 €) per hour. Considering that most consumer products cost almost the same as in the West, It’s questionable to say the least, why the Romanian state taxes so much it’s citizens. … See also the article about how much food costs in England compared to Romania.
Romania income tax

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