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
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 website for Monitorul Oficial.
For further information or assistance, please contact your local GMS or People Services professional or:
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.
© 2017 KPMG Romania S.R.L., a Romanian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.
Flash Alert is an Global Mobility Services publication of KPMG LLPs Washington National Tax practice. The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.