Romanian PM To Meet With Finance, Labor Ministers For Talks On Fiscal Code, Public Sector Wages

Romanian Prime Minister Emil Boc on Tuesday called for a meeting with the ministers of Finance and Labor, regarding the ordinance amending the Fiscal Code, which will also be discussed with employers’ organizations, people close to the matter told MEDIAFAX.

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The Government announced later that Boc, Labor Minister Ioan Botis and Finance Minister Gheorghe Ialomitianu are meeting to prepare the normative acts on Emergency Ordinance 58/2010, amending the Fiscal Code, and the unitary wage law.

A draft ordinance, which amends Law 571/2003 on the Fiscal Code, was put up for public debate on Thursday. It says Romanians who gain income from freelance activities will pay, starting with 2011, social security contributions of at least 25.36% and up to 35% of their income, nearly double from the current level of contributions. Under current law, they pay social security contributions in the amount of 16.5% of their income.

Furthermore, the pension insurance contribution is to increase to 24.43% from 10%, the health insurance contribution is to increase to 8.35% from 5%, while the contribution to the unemployment aid fund is to increase to 0.78% from 0.5%.

The draft also introduces a contribution of 0.85% for vacations and social health insurance indemnities and an insurance contribution of 0.15%-0.85% for labor accidents and professional diseases.

The ordinance should enter force on January 1, 2011, and be applicable to income earned in January 2011.

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