Romanians With Income Exclusively From Copyright To Pay Social Security Contributions – Labor Min

Romanian Labor Minister Mihai Seitan said Monday that, under the draft pension law, people whose income comes exclusively from copyright would no longer be exempt from paying social security contributions, but that the measure would not apply to those who also have labor contracts.

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Imaginea articolului Romanians With Income Exclusively From Copyright To Pay Social Security Contributions – Labor Min

Romanians With Income Exclusively From Copyright To Pay Social Security Contributions – Labor Min

Seitan said the law, which aims to create a unitary pension system, would be debated in Parliament for a long time, but may be applied as of 2011.

The labor minister said the measure is needed to protect people who do not have the right to a pension, such as journalists who make a living from copyright and are not eligible for unemployment aid when they lose their jobs.

Seitan said the government would hold talks on how the measure should be applied with press and arts employers' associations and labor unions. "The basic principle will be that everyone must receive a pension for their contribution. Otherwise, they will receive social assistance. However, I do not want to have to provide social assistance to earners," the minister said.

Seitan rebutted accusations that authorities are looking for revenge against the unsympathetic press by introducing new taxes during a period of crisis, arguing that the law would only be applied next year at the earliest. "A proper approach would be to consider employees' rights, not the situation of the press," the minister said, adding that all over Europe, professions with regulated incomes contribute to the social security pool.

Finance Minister Sebastian Vladescu said Monday that, for the moment, the topic of collecting social security contributions from copyright is not on the Finance Ministry's agenda and that it would only be discussed when the issue of amending the taxation system is raised.

Romania's government is planning to stop exempting people from paying social security contributions for income gained from copyright, royalties and various collaboration contracts. The government is also looking at ways to include freelance professions into the public pension system, according to a document drafted by the Labor Ministry, which has been discussed by the government.

The document, signed by the labor minister, shows the draft law on the country's future unitary public pension system has been amended following talks with unions, employers, the International Monetary Fund, the World Bank, the European Commission, organizations of pensioners and following public debate.

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