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Social contributions - owed by employees, established, retained and paid to state budgets by employers

Employees will owe the mandatory social contributions starting with January 1, 2018, however employers will still have the obligation to establish, retain and pay them to the social security budgets, the representatives of the Ministry of Public Finance specify in a press release issued by MFP and sent on Thursday to AGERPRES.

"The 2017-2020 Governing Programme contains a package of measures aimed at the mandatory social contributions that are to be implemented from January 1, 2018. Thus, the level of mandatory social contributions is to decrease by 4.25 percentage points, from 39.25 pct to 35 pct respectively. The income tax rate (flat tax) is also scheduled to be reduced from 16 pct to 10 pct from January 1, 2018. These contributions will be due by the employee, but the obligation to establish, retain and pay them to the social security budgets will continue to be the employer's obligation. In this regard, the amounts representing CAS and CASS, which are currently due by the employer in their own name, will be taken over by the employee. This measure will provide the employee with an increase in the score taken into account when determining the pension and implicitly a higher pension," reads the release.

According to the quoted source, the measures will not involve an increase in wage costs for the employer. At the same time, given the decrease in the income tax rate, the employee's net income will not be affected, either.

On Wednesday, Prime Minister Mihai Tudose stated that as long as he is the head of the Executive, the measure regarding the transfer of the CAS and CASS payment obligation from the employer to the employee will not be enforced.


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