New legislative changes on employees’ earnings in Romania, starting with January 2018 | News Flash

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On 08.02.2018, the Government approved by emergency ordinance a series of fiscal measures that have an impact on the earnings of employees starting with January 2018.

Government Emergency Ordinance no.3/2018, regarding some fiscal-budgetary measures, was published in the Official Gazette no.125 of 08.02.2018.

Of these measures we mention:

•  To bear from the state budget a portion of the health insurance contribution (CASS) due by individuals who earn income from salaries based on individual employment contracts in progress  on 31 December 2017 and which fall into the categories of individuals exempt from income tax according to the Labour Law (e.g. IT employees, disabled persons with severe disabilities etc.).

The measure is conditioned by the employer’s transfer of the tax burden of the social contributions from the employer to the employee, following the provisions of Government Emergency Ordinance no.79/2017, respectively, to increase the gross salary by at least 20% compared to December 2017 for the employees of this measure.

• The basis of calculating the social security contribution (CAS) due by the employees who  receive medical leave will change, this will be represented by the medical insurance allowance.
• The CAS and CASS contributions due by employees with part-time individual employment  contract will be borne by them in relation to the gross income actually achieved and the difference in contributions due up to the level of the social contributions related to the gross minimum wage per country is borne by employer/payer on behalf of the employee.

In order to implement the provisions of the present Emergency Ordinance, within 15 days of its coming into force, will be issued rules approved by Fiscal Authority.

Considering that the modifications brought by GEO no.3/2018 have impact on January 2018 payroll, we will revert with more details and related updates after the publication of the implementing rules.

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