The National Bank yesterday announced, through Lucian Croitoru, adviser to NBR Governor Mugur Isărescu, that it is in favour of a 3% cut to social security contributions paid by employers, which would be good news for employers, considering that private companies have made over 700,000 people redundant since 2009 (the year when the CAS - social security contributions were hiked by 3.3%).
"This measure needs to be implemented as soon as the conditions for cutting the CAS are met. It appears that corporate taxation is excessive in Romania and everybody knows what employment costs employers bear. I think reducing social security contributions is sustainable as far as the state budget is concerned, but exact calculations are made by the Finance Ministry," Croitoru said.
Specialists say cutting social contributions paid by the employer and the employee by 3% (from a total of 44% to 41% of contributions corresponding to every gross salary) could lead to the creation of 100,000 new jobs and to around 380 million euros in savings for companies.
So, for a company with 100 employees earning the average salary in Romania, with an average gross expenditure by the employer of 2,500 lei/employee, the savings resulting from a 3% cut to the social security contributions would amount to 90,000 lei (21,500 euros), which the employer could use to cover salary expenses for at least three new employees.
The National Bank yesterday announced, through Lucian Croitoru, adviser to NBR Governor Mugur Isărescu, that it is in favour of a 3% cut to social security contributions paid by employers, which would be good news for employers, considering that private companies have made over 700,000 people redundant since 2009 (the year when the CAS - social security contributions were hiked by 3.3%).
"This measure needs to be implemented as