The payment of transport and accommodation costs and the delegation allowance (known as the daily allowance) are employee’s rights when he moves in work interest, according to article 44 of the Labor Code. The daily allowance is granted for calendar days, whether the delegation occurs within the country or abroad.
The amount of the delegation allowance is established by law, the most recent change in value of the per diem was in January 27, 2015.
The delegation may be ordered for a period not exceeding 60 days in 12 months, according to the Labor Code and may be extended only with the employee’s consent for successive periods not exceeding 60 calendar days.
In the case of employers in the private sector, the daily allowance is granted under the conditions established by law or by the collective labor agreements.
Per diem is granted for both delegations in the country and to those abroad. In the country, the daily allowance value is set at the legal level for public institutions, indexed by 2.5.
Since January 2015, the daily allowance for public institutions is 17 lei / day, so for the private sector is 42.5 lei / day.
The external daily allowance is regulated by HG 518/1995 for temporary missions. The value is set at the legal level of the daily allowance as decided for each country, indexed by 2.5.
The number of the calendar days of the delegation is calculated from the date and time of departure to the day and time of the return of the moving vehicles in the place where the employee works, each 24 hours representing a day of delegation.
In case of delegations that last only a day and also in the last day when are more delegating days, the daily allowance is granted only if the duration of the delegation is at least 12 hours.
For the calculation of the period of the daily allowance in foreign currency, when traveling abroad, is taken into account the transport vehicles. Thus, if the airplane, is considered the take-off moment and the moment of landing in the returned country, from the airports that constitute border crossings for Romania.
Similarly, if the train or the car, is taken into account the moment of passing through frontier crossing points, both on departure from, and the return of the country.
When the employee is in the delegation abroad, the per diem received will cover the cost of transport within the city.
When there are no time fractions that totalize 24 hours, the daily allowance is granted:
The article 55 of the Tax Code updated provides that the mission allowance is applied tax rules similar to salary income, for the part that exceeds the limit of 2.5 times the legal level established by Government decision for the staff of public institutions:
Legal note – art. 55 of Law 571/2003 in conjunction with the Government 44/2004 regarding the Fiscal Code methodological norms
(2) The imposing rules of salary incomes apply to the following types of income, regarded as equivalent salaries:
Thus, regardless of the entity paying, the daily allowance difference that exceeds 2.5 times the established level for employees in public institutions is subject to income tax and is included in the monthly calculation base of mandatory social contributions (employee and employer).
For the daily allowance the general deductibility rule is appled: the amount is fully deductible in calculating the taxable profit.
The GD 23/2015 for the approval of the application of Law no. 142/1998 regarding the granting of meal tickets provides, however, that is not given meal tickets in the delegation days for which the employee receives allowance.
The employee who travel can get a cash advance based on the number of days of the delegation. The advance payments can be achieved also if the amounts are in foreign currency.
There are situations in practice where the per diem is given after the delegation.
When the amount in lei is given before travel, the accounting department draws up the payment order (receipt) in two copies, as required by the Ministry of Finance Order 3512/2008. The employee justifies the advance for travel and for the purchase of material with cash by drawing up a travel order which will included the stamp and the visa of the head of the unit where he travels, the date and times of arrival and departure.
If the foreign currency advance, the financial accounting document used to deduct money, apart of the rights of the daily allowance expenses, will be the reimbursement (for foreign travel).
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