Gov’t changes intentions. Contributions will be only partially transferred to the employee

Cartel Alfa  trade union leader, Bogdan Hossu (photo), said at the end of the meeting with Deputy Prime Minister Marcel Ciolacu and the Ministers of Labour, Health, Finance and Justice on Wednesday, that the Government has changed its mind about the transfer of contributions to the employee, so that they will be only partially transferred, digi24.ro informs.

“The special funds – unemployment, the occupational risk fund, the wage guarantee fund, medical leave, including the employer’s obligations for special working conditions – will remain the employer’s responsibility. Thus, of the overall contributions, only 20% of the 22.7% contributions for normal conditions will be transferred, or five percentage points for extras and ten percentage points for specials will be added,” Hossu said.

At the same time, he pointed out that, according to the Justice Minister, “the law will explicitly and imperatively stipulate that employers are compelled to increase by 20% the level of gross wages on which the new social contributions of 35% will be applied to the employee and the rest 10% wage tax.

“At the same time, it has been agreed, at least apparently, for the budgetary sector that, in fact, in the state employees wages law, the 25% increase set for January 1, 2018 also to include the transfer of social contributions. So, practically, the budgetary sector will register a 25% increase of social taxes – 20% for the employer, so the employees will have a net increase of about 5%,” the Cartel Alfa leader said.

In his turn, BNS trade union leader Dumitru Costin said he will not make any public statements without having a document publicly assumed by the Mihai Tudose Government, stating that he has asked the executive’s representatives about assuming a possible failure to transfer the contributions to the employees.

The union leader said he took note of the fact that as of January 1 it is proposed, among other things, besides shifting the contributions, also to increase the level of contributions that each employee will pay.

Following Wednesday’s talks, trade union leaders continue to threaten with protests in early October.