Employers in Romania to pay more taxes for part-time workers this year, says minister of finance

Ovidiu Posirca 08/05/2017 | 17:22

The minister of finance, Viorel Stefan, says the government is working on changes to the legislation that would force companies that employ people on 2 or 4 hour contracts to pay more for their healthcare and pension contributions.

Stefan told HotNews.ro that this measure would be enforced only this year only for employees in the case of which the part-time work contract is their only source of income.

“To make the employer so that no matter to whom it signs the contract with, to pay for the employee the pensions and healthcare contributions, which are computed based on the minimum wage. This will apply only for part-time contracts that are the only source of income. (…) The employers will pay the quota based on the minimum wage. The measure will work only this year,” said the minister.

Stefan cited data from the Labor Inspection Inspectorate (ITM), according to which there are 360,000 part-time work contracts as the only source of income.  He said there are another 360,000 contracts based on the minimum wage, in the case of which the income stands at only RON 700. This happens although the gross minimum wage was hiked to RON 1,450 this February.

The new measure would be enforced starting July, according to Stefan. The minister said that the companies would be forced to pay their part-time employees more because at this moment, employers “punish” employees by telling them that if they don’t accept a 2-hour contract, they can find other people that will agree.

The measure would not apply for employees that have more than one job.

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