Romanian Self-Employed People Not Targeted By Draft Decree On Social Security Contributions

The Bucharest Pension House said Friday that, after the draft law amending the emergency ordinance becomes effective, self-employed people will pay social security contributions as per Law 19/2000 regulating the public pension system and other social security rights, like before the emergency decree was enacted.

According to the Bucharest Pension House, the draft law amending Government emergency ordinance 58/2010 targets only people who gain income from copyright or civil conventions.

Labor Minister Ioan Botis said Wednesday that the Government decided in a meeting that employers shall withhold, declare and calculate the pension insurance contribution and the contribution to the unemployment fund for their employees' income from copyright.

According to Botis, social security contributions will not be paid for employees who are constantly paid salaries and gain income from copyright occasionally.

Also, social security contributions will be limited to five average gross salaries per year for people with no employment contract and who exclusively gain occasional income from copyright.

Botis also said that employees who are paid salaries and also gain income from copyright, on a regular basis, will pay social security contributions for the extra income, which will also be limited to five monthly average gross salaries.

The draft emergency ordinance presented Tuesday by MEDIAFAX stipulates that companies will be obliged to submit monthly, until the 25th of the month following that in which the income for freelance activities was paid, a statement regarding the nominal registration of people who gain income from freelance activities, other than salary income.

The ordinance also says that companies are obliged to declare, calculate, withhold and pay individual social contributions only for pension and unemployment insurance, not for health insurance, which equals a total contribution of 11% of the calculation base, compared to the current 16.5%.

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