Reduction of employer Social Security Contributions by 5 percentage points

Reduction of employer Social Security Contributions by 5 percentage points

View this page in: Romanian
23 September 2014

In brief

Law 123 amending Law 571/2003 regarding the Fiscal Code referring to the reduction by 5 percentage points of employer Social Security Contributions was published on 19 September 2014.

In detail

According to Law 123/2014, the new reduced mandatory social contributions rates due by employers are the following:

1) for normal working conditions: 15.8% (reduced from 20.8%);

2) for difficult working conditions: 20.8% (reduced from 25.8%);

3) for special working conditions: 25.8% (reduced from 30.8%);

Law 123/2014 enters into force on 22 September 2014, with the reduced rates being applicable starting with the October 2014 salary income.

[Source: Official Gazette no. 687 from 19 September 2014]

The takeaway

The reduced rates only apply to mandatory employer social contributions and have no impact on the individual social contributions due by employees.

 

For a deeper discussion of how this new legislation might affect your business, please contact: 


Mihaela Mitroi
Partner
Mihaela.Mitroi@ro.pwc.com
Ionuţ Simion
Partner
Ionut.Simion@ro.pwc.com

Daniel Anghel
Partner
Daniel.Anghel@ro.pwc.com

Diana Coroabă
Partner
Diana.Coroaba@ro.pwc.com

 

PDF download PDF icon

 

Contact us

Ionuț Simion

Country Managing Partner, Romania

Tel: +40 21 225 3708

Daniel Anghel

Tax and Legal Services Leader, Romania

Tel: +40 21 225.3794

Diana Coroabă

Partner, Tax Services

Tel: +40 21 225 37 94

Ionuţ Sas

Partner, Tax Services, Romania

Tel: +40 21 225 3741

Follow us