Romanian minister: Employers won’t be obliged to maintain net salaries

The Government won’t introduce in the Fiscal Code any provision obliging employers not to lower net salaries after the social contributions are transferred from the employer to employee, labor minister Lia Olguta Vasilescu said yesterday. It won’t be necessary to introduce such a provision, because the employers’ organizations said that the current level of wages would be maintained, Vasilescu added. Union leader Bogdan Hossu said that if employers don’t increase the gross wage, the net salary will drop by 16%. The transfer of social contributions won’t have any negative impact on wages, prime minister Mihai Tudose also said. A Deloitte Romania analysis shows that a net salary of RON 3,000 (EUR 652) could drop by over 16% to RON 2,502 (EUR 504) from next year if the employer doesn’t increase the gross salary. The decision to increase the gross salary is left to the employer. Most Romanian employees expect lower salaries after changes in contributions payment editor@romania-insider.com