Higher taxes for part-time contracts in Romania starting today

The new tax system for part-time contracts in Romania becomes valid today (August 1). The social contributions for part-time contracts will be paid at the level of the gross minimum wage, regardless of whether the actual salary is below the gross minimum wage. The bill introducing the new tax system was published in the Official Gazette last week. The number of active labor contracts has increased by over 171,000 since the beginning of the year to 6.395 million, according to an official document. It went up by 2.4% compared to July last year. Fixed-term contracts had a significantly faster growth rate. They rose by 25% in the last 12 months, from 409,443 in July last year to 513,092 in July this year. Part-time contracts increased by 5.3% in the last 12 months from 1.103 million in July 2016 to 1.161 million in July this year. The number of labor contracts with an indefinite term reached 5.882 million in July, up 0.8% year-on-year. New social contributions for part-time work contracts in Romania editor@romania-insider.com