Costin (BNS): Romania stops being social state from 1 January 2018

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Romania will cease being a social state starting with 1 January 2018, following the transfer of social contributions from employer to employee, leader of the National Trade Union Bloc (BNS) Dumitru Costin stated on Wednesday during a debate titled "Overtime - the way to burnout."

"Romania is about to forsake a fundamental thesis in Romania's Constitution on 1 January, 2018, it will quit being a social state, because starting with next year, the social security system will be solely and exclusively centred on the employee, once the capital, as co-funder, disappears. Romania will experience a new model. We are tackling this subject because it is a true, painful subject that we have tried for years to keep somewhere in the corner, trying not to talk much about it," Costin said.

The BNS leader also affirmed that employers take advantage of the fact that labour force in Romania "is cheap at Europe's level, and consequently, they do not have any problem in pressuring the employees who do not earn much to work as much overtime as possible."

"People who earn little are trying to do everything they can to find solutions to earn better, and then, despite information, despite explanations, they put up with it. We explain to them that it is not all right, we have certain limits with regard to doing overtime. They are in pursuit of legitimate financial gains, obtained through work and they are willing to make compromises, even compromises at the expense of their own health, at their families, compromises that come at a cost later on," the president of BNS, Dumitru Costin further said.

The Government approved last week, by amending the Tax Code, a series of measures regarding the taxation of Small and Medium Enterprises (SMEs), the income tax and social contributions.

Thus, starting with 1 January 2018, social contributions are due to be transferred from employer to employee and the income tax to drop from 16 percent to 10 percent.

The level of contributions paid for the gross salary are due to decrease two percentage points, from 39.25 pct to 37.25 pct, but of the overall 22.75 pct contributions owed by the employer, 20 points are transferred to the employee. Thus, of the gross salary, 35 pct will be contributions retained by the employer in the employee's account and the contributions that remain in the employer's responsibility, of respectively 2.75 pct (after the 20-point transfer to the employee) decrease to 2.25 pct and will cover the unemployment, accident, medical leave, salary debts risks.AGERPRES(RO — author: Catalin Trandafir, editor: Andreea Marinescu; EN — author: Simona Iacob, editor: Maria Voican; online editor: Maria Voican)

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