social security contributions

Romania and the International Monetary Fund have agreed to wait for additional fiscal data before deciding on a potential cut in social security contributions, IMF mission head Jeffrey Franks said Monday.

Romanian Prime Minister Emil Boc said in the Government meeting Wednesday that the Executive is not in favor of doubling social security contributions for people who gain income from copyright and asked Finance Minister Gheorghe Ialomitianu to consider this aspect.

A Romanian draft Government emergency decree, which almost doubles the level of social security contributions those who gain income from freelance activities must pay starting 2011, was debated in the Government, but no decisions were taken, Labor Minister Ioan Botis told MEDIAFAX Saturday.

Romania’s Government estimates it will collect extra 345 million lei (EUR1=RON4.1751) in the second half of the year by applying a 16% tax on meal vouchers, and extra RON76 million by deducting social security contributions from copyright income and reducing deductible quotas to 25%, from 40%.

Romanian parliament commissions for labor and health Wednesday approved an amendment to the social security budget for 2010, according to which employees’ and employers’ social security contributions will be reduced, although the draft budget stipulated they would remain at the last year’s level.