Foreign investors contradict Romanian PM on contributions’ transfer

The Foreign Investors Council (FIC) in Romania has asked for clarification about the need to transfer social contributions from the employer to the employee. The FIC has sent a letter to the Romanian Government, which is planning this measure. FIC argues that foreign investors don’t understand the need for this change. “The employers we represent don’t understand the reason behind the transfer of social contributions from the employer to the employee. It is not clear what issue it would solve and why this would be the right way,” according to FIC. The Foreign Investors Council’s statements contradict what the prime minister Mihai Tudose said yesterday about the transfer of social contributions. “I’ve talked to business people, wages will rise. They told me this was an opportunity to pay people better,” the prime minister said, reports Profit.ro. The transfer of social contributions won’t have any negative impact on wages, he added. However, 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 or not the gross salary is left to the employer. The Government hasn’t included this obligation in the draft law amending the current Fiscal Code. Most Romanian employees expect lower salaries after changes in contributions payment editor@romania-insider.com