PwC criticizes Romania's planned social contribution burden on employees

20 July 2017

No member state of the European Union applies a system in which social contributions are paid exclusively by employees, said the PwC partner Mihaela Mitroi in an answer to Hotnews.ro.

In some countries like Estonia, the employees contribute only by 1.6% whereas employers have a contribution of 33.8%.

The average contribution paid by employees is 13.35% at European level whereas the average contribution paid by employers amounts to 23.57%. Romania is currently close to the EU average, with contributions of 22.75% paid by employers and 16.5% paid by employees, Mitroi added.

However, the Social Democratic leader Liviu Dragnea announced earlier this week that employees will pay the social contributions exclusively. The share of health contributions in Romania will reach 10% whereas the share of social contributions will amount to 25%.

According to the simulations made by PwC, the impact on net wages will be rather negative, Mitroi said.

editor@romania-insider.com

Normal

PwC criticizes Romania's planned social contribution burden on employees

20 July 2017

No member state of the European Union applies a system in which social contributions are paid exclusively by employees, said the PwC partner Mihaela Mitroi in an answer to Hotnews.ro.

In some countries like Estonia, the employees contribute only by 1.6% whereas employers have a contribution of 33.8%.

The average contribution paid by employees is 13.35% at European level whereas the average contribution paid by employers amounts to 23.57%. Romania is currently close to the EU average, with contributions of 22.75% paid by employers and 16.5% paid by employees, Mitroi added.

However, the Social Democratic leader Liviu Dragnea announced earlier this week that employees will pay the social contributions exclusively. The share of health contributions in Romania will reach 10% whereas the share of social contributions will amount to 25%.

According to the simulations made by PwC, the impact on net wages will be rather negative, Mitroi said.

editor@romania-insider.com

Normal
 

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