In an effort to help bolster employment, a new Romanian law reduces employers’ social security contributions by 5 percentage points, starting with income related to October 2014. These changes should be reflected in October’s payroll, and the legal deadline for declaring and paying social security contributions for that month was 25 November 2014.
In an effort to help bolster employment, a new law in Romania provides for the reduction in social security (pension) contributions due by employers of 5-percentage points, starting with income related to October 2014.1
Why This Matters
The reduction in employers’ social security contributions will help reduce employment-related costs and is intended to boost hiring.
While social security (pension) contributions due by individuals have remained unchanged at 10.5 percent, the new social security (pension) contributions due by employers will be:
This change should be reflected in the payroll for October 2014 and the legal deadline for declaring and paying Romanian social security contributions for October 2014 is 25 November 2014.
This change will reduce the social security burden on companies.
1 Law no. 123/2014 on amendments to the Fiscal Code (“the Law”) has been published in Monitorul Oficial (Official Journal of Romania) , no. 687 of 19 September 2014. For the published laws and other statutory instruments of Romania (in Romanian), see the Web site for Monitorul Oficial at: http://www.monitoruloficial.ro/ .
For further information or assistance, please contact your local GMS or People Services professional or:
Madalina Racovitan, GMS country leader with the KPMG International member firm in Romania
tel. +40 372 377 782
The information contained in this newsletter was submitted by the KPMG International member firm in Romania. The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.
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