Salaries in the public sector will increase by some 5 per cent as of January 1, 2018, although a 25 per cent increase has been announced through the Uniform Pay Law, CNS Cartel Alfa's Chairman Bogdan Iulian Hossu said on Wednesday at the end of his discussions with Government representatives. "According to the minister of justice, without damaging the property right issue, the law [on the transfer of social contributions from the employer to the employee] will expressly and imperatively stipulate that employers are obliged to increase by 20 per cent the level of gross salaries, to which the new social contributions will be applied, 35 per cent for the employee and 10 per cent salary tax. Thus, net salaries in the private and state sector will be increased by around 8 per cent in the given structure. It is also agreed that the public sector will see the 25 per cent increase planned for January 1, 2018 under the Public Pay Law, from which social taxes will be reduced, respectively 20 per cent for the employer, so a net increase of approximately 5 per cent, more exactly 4.3 per cent," Hossu said.
Regarding the transfer of contributions from employer to employee, the Cartel Alfa head said that out of the total of obligations, 20 per cent out of the 22.7 per cent will be transferred. Asked what would happen if employers did not increase the employees' gross salary, the Cartel Alfa chairman replied that the law should be consulted in that case. Hossu also pointed out that the minimum salary would include an increase of 100 lei from the current taxation, and through the 20 per cent transfer, it should stand at around 1,850 lei on January 1, 2018.
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