Higher social contributions for part-time contracts in Romania

Employers will need to pay pension and healthcare contributions at the level of the minimum wage, currently amounting to RON 1,450, for the employees with part-time contracts, even if their salaries are below the minimum wage, according to a document drafted by the Government. The normative act introducing the new payment obligation has been drafted and waits to be approved by the Executive, government sources told Profit.ro. Employees who also have a full-time employment contract, students and retirees will be exempt from these provisions. The measure could be introduced this August, although the initial deadline was June. There are about 500,000 part-time work contracts in Romania, according to the Government’s estimate. The Government expects to collect additional revenues of RON 600 million (EUR 131 million) this year by introducing this obligation. For the next year, it expects extra revenues of RON 1.3 billion (EUR 284 million). Romanian PM: Govt. won’t introduce additional tax on turnover editor@romania-insider.com