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

Ionut Simion

Country Managing Partner, Romania

Daniel Anghel

Partner, Tax and Legal Services Leader, Romania

Diana Coroaba

Partner, Tax Services, Romania

Ionut Sas

Partner, Tax Services, Romania

Follow us