Parliament adopts law that cuts social contributions

Newsroom 09/09/2014 | 14:00

The Romanian Parliament’s Chamber of Deputies adopted on Tuesday the law that cuts employers’ social contributions by 5 percent. The chamber adopted the project in its initial form and rejected president Basescu’s request for it to be re-examined.

The law was adopted with 307 votes “for”, 7 “against” and 5 abstained. Prime-minister Victor Ponta and finance minister Ioana Petrescu were also present for the vote.

The reduction was originally planned for July 1 but was postponed until October and is set to have a RON 850 million impact on the budget.

The social security tax (CAS) cut by 5 percentage points, to 15.8%, would place Romania second in the region in terms of the lowest social security costs, after Slovakia, with 14%, and before Poland, with 16.26%, according to a survey conducted by Accace.