Romania - Effect of social security deductions disputed - February 28, 2018

Since the government introduced a new distribution of the social security contributions, there has been a fight going on about the impact on net wages. By emergency ordinance it was decided in 2017 to transfer all social contributions from employers to employees. This important change became effective on 1 January 2018. Companies had to increase the gross salaries of their workers with the value of the social contributions so that the net salaries wouldn’t drop. However, estimates show that in the private sectors some 2 million workers have received lower wages after the social contributions were transferred from employers to employees. The government still firmly denies that there is reliable evidence of wages going down in January 2018. The labour ministry has ordered that, by 31 March 2018, employers will have to register addenda to their workers’ labour contracts with the new gross salaries after the social contribution transfer.

Read on: in English (1) …   in English (2) …

For more information, please contact the editor Jan Cremers or Nuria Ramos Martin, Amsterdam Institute for Advanced Labour Studies (AIAS) cbn-aias@uva.nl or the communications officer at the ETUI, Willy De Backer wdebacker@etui.org. For previous issues of the Collective bargaining newsletter please visit http://www.etui.org/E-Newsletters/Collective-bargaining-newsletter. Since June 2013 readers can consult our archive and search through all articles in our database at www.cbnarchive.euYou may find further information on the ETUI at www.etui.org, and on the AIAS at www.uva-aias.net.

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