social contributions

Romania ranks among the countries with the highest level of combined employer/employee social contributions on $100,000 of gross income, placing it 18th among 87 states surveyed in the category, according to the most recent KPMG International Individual Income Tax and Social Security Rate report.

Romanian authorities will consider reducing social security contributions in mid-2011, in order to cut workforce costs, which are higher compared to other countries, Finance Minister Gheorghe Ialomitianu told Pro TV in an interview Tuesday.

Romanian public system pensions, including minimum guaranteed pensions, will be frozen at they current level in 2011, and social security contributions will not decrease below the level set for this year, according to the final form of the country’s 2011 draft state budget, obtained by MEDIAFAX.

Romanians who gain income from freelance activities will pay, starting with 2011, social security contributions of at least 25.36% up to 35% of their income, nearly double from the current level of contributions, according to a draft government emergency decree.

Romania’s Labor Minister Mihai Seitan said Monday that the Ministry will draw up a draft law through which earners of copyright income will contribute to the pension, healthcare and unemployment benefit systems like all regular wage earners.

Romania will draw up a special law to regulate copyright, civil conventions and aspects regarding authorized individuals, and will set unitary social contributions for income generated by these activities, Labor Minister Mihai Seitan said at the end of Wednesday’s Government meeting.