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The National Confederation of Free Trade Unions of Romania (CNSLR) Fratia is demanding that the Government renounce the initiative to transfer social contributions from the employer to the employee, according to a press release issued by the federation for Agerpres on Thursday.
According to the said source, the CNSLR Fratia is dissatisfied with the fact that the Government has not made public until this date a draft of the bill that "intends to introduce this important change to the architecture of the taxation system of salaries in Romania." "We do not know how this mechanism will work and, in the absence of complete explanations, we believe that it will significantly affect the net incomes of employees.
"The Government has tried to convince us that this measure will lead to a better collection of tax revenues, that the revenues to the state budget will increase and that the retirement point will go up! These are just explanations without support unless we have a draft normative act and we do not know how it intends to corroborate the amendments to the Fiscal Code with Law 153/2017. If the two issues - the salaries of public sector employees and moving social contributions from the employer's obligation to that of the employee - do not have clear application mechanisms, we will see that the salary increase, already regulated by Law 153/2017 will be virtually canceled by moving pension and social obligations to the employee!" the release quoted Leonard Barascu, president of CNSLR - Fratia, as saying.
Also, in the coming period, the representative federations in the public sector will have technical meetings with the relevant ministries to discuss the effects on employees' net salaries, generated by the introduction of the new mechanism of transferring social contributions from the employer to the employee.
