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) …

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