Solidarity tax on state wages above EUR 1,000 a month, again on the table in Romania

State employees who make more than EUR 1,000 a month could be subject to a so called solidarity tax of 10 percent, according to Romanian Prime Minister Victor Ponta, who said this would be applied for a limited period of time, a year or a year and a half. The amounts collected from this new tax would cover the social tariffs for energy or to support the recalculated pensions for the military.

This tax would apply to all employees in the public sector with a salary above that threshold, as well as from the companies in which the state is the majority or sole owner. The idea has been presented before, but the suggested tax level was 16 percent in the past. The PM also previously said the ruling coalition the Social Liberal union USL plans to apply different tax levels from 2013, depending on salary level. His previous statement was met with disapproval from the National Union of Public Employees, saying the tax was discriminatory and that they would try to block such a measure by any legal means. Romania enforced a 25 percent salary cut for state employees in 2010, a measure meant to help the country weather the financial problems. The Government has managed to only partially increase the salaries of state employees during the years that followed the large cut. editor@romania-insider.com