The measures include the transfer of social security contributions from employer to employee, cutting the income tax to 10% from 16% and lowering the social security contributions by 2%.
Employers will pay a 2.5% labor insurance contribution and the threshold for micro-enterprises will increase from EUR500,000 to EUR1 million.
The government also approved mandatory separate payment accounts for the value-added tax.
The measures received severe criticism from trade unions and business associations and have led to rallies over the fear of lower wages and economic instability.
The Romanian leu hit a five-year low midday Wednesday amid tensions over the government’s plans to overhaul the tax system and signals from the central bank that it would allow more flexibility in the exchange rate.