KPMG: Romania Among States With Highest Social Contribution Rates

In the category, Romania scored higher than many developed European countries, such as Norway (29th place), Spain (30th) and the United Kingdom (35th), the report noted.

„Given the limited benefits which the Romanian social security system provides in comparison to these countries, this gives cause for concern,” said Daniela Oprescu, KPMG Director in Romania’s International Executive Services team.

In the table for combined employer/employee social security rates on $300,000 of gross income, Romania takes 24th place out of 85 countries surveyed, again ranking higher than many developed economies such as the United Kingdom (26th), Germany (44th) and the Netherlands (50th).

According to the survey, France has the highest level of combined employer/employee social contributions, of over 50%, followed by Belgium with 48%. Romania pays combined social taxes of 31.3%, of which 10.5% represent employee taxes.

KPMG’s Individual Income Tax and Social Security Rate Survey 2011 is a cross-border survey of personal tax and social security rates with historical data from 2003-2011. The report covers 96 countries, concentrating on the highest level of personal tax payable to the central government.