TAXATION ISSUES IN ROMANIAN PRE-UNIVERSITY EDUCATION
PAYROLL COMPARED TO THE EUROPEAN UNION

Teodor Hada, „1 Decembrie 1918” University of Alba Iulia, Romania
Radu Mărginean, „1 Decembrie 1918” University of Alba Iulia, Romania
Marina Simona Lukacs, „1 Decembrie 1918” University of Alba Iulia, Romania

ABSTRACT: The school is one of the bedrocks of the citizens’ development of any country, a
reference system for future generations, but the importance given to the educational system varies
from country to country, depending on each country’s policy on funding and taxing the education.
Our analysis emphasizes theoretically and with practical examples the calculation of payroll in
Romanian pre-university education and the position of our country within the European Union in
this field. We have noticed that Romania, in the framework of pre-university education among E.U.
countries, is ranked in last place in terms of funding the education system, and in terms of
remunerating teachers, having a reduced payroll tax compared to the analysed EU countries,
because of the 16% flat tax applied in our country. We believe that an increase in investments in
the Romanian pre-university education, by increasing teachers’ wage and ensuring an efficient
management of the education system, are factors likely to contribute to the sustainable
development of Romanian education in terms of performance and international competitiveness.

Keywords: school education, tax, teachers’ wage, social contributions, tax.

JEL Codes: G10, I21, I22.