Romania, EU leader in labour taxation: over 40% of salary goes to the state

Romania ranks first in the European Union in terms of labour taxation, according to Eurostat data. In practice, nearly half of an employee's income goes to the state in the form of taxes and contributions.

For a single person with no children, the labour tax in Romania reaches 41.5% of income. Lithuania follows in second place with 39%, and Belgium with 37.6% – both well above the European average of just over 29%.

At the other end of the scale, the lowest labour taxes in the EU are found in Cyprus, where only 15% of gross income goes to the state. Greece follows with 17%, and the Czech Republic with 21.6%.

On the other hand, Romanian incomes have grown faster than anywhere else in the European Union: over the past 15 years, wages have nearly tripled. However, according to Digi24 journalist Mihaela Brazdeș, income disparities among Romanians remain high.

Currently, the minimum wage in Romania stands at 4,325 RON gross, having been increased by nearly 300 RON from 1 July.