Romanian minister: Tax contribution transfer in IT could be solved with state aid

Romania’s Government will grant a state aid to prevent the salaries of people working in the IT sector from decreasing following the full transfer of social contributions to employees from January 1 next year, finance minister Ionut Misa said yesterday evening. The Government is currently working on an emergency ordinance that will be approved next week. The state aid scheme addresses “companies that have IT employees and would have to pay an additional cost of 8.5%”, Misa said. The Government has recently decided to fully transfer the social contributions from employers to employees. The employers should increase the gross wage by 19.9% so that the net salary remains the same following this transfer. However, employees who currently benefit from income tax exemption, such as IT employees or people with disabilities, will see a reduction in their salaries even if the employer increases the gross wage. editor@romania-insider.com