- Emergency Ordinance no. 3/2018
Emergency Ordinance no. 3/2018
Emergency Ordinance no. 3/2018, published in the Official Gazette Part I no. 125 of February 8, 2018, regarding certain tax-budgetary measures, brings the following clarifications:
Comment : This Emergency Ordinance brings amendments to the following issues:
a) In the case of individuals who earn salary income and assimilated to salaries on the basis of individual employment or secondment contracts, which were in progress on December 31, 2017, and which fall into the categories of individuals exempt from income tax (individuals with severe or increased disabilities, individuals who receive income from salaries or assimilated to salaries as a result of carrying out computer program creation activities, individuals who receive income from salaries or assimilated to salaries as a result of R & D and innovation activities; and individuals who receive income from salaries and assimilated to salaries as a result of carrying out their activity on the basis of an individual employment contract concluded for a period of 12 months, with Romanian legal persons who carry out seasonal activities from those stipulated in Article 1 of Law no. 170/2016 regarding the specific tax applied for certain activities, throughout the year), is mentioned the calculation method of the social health insurance contributions, so that the net monthly income is maintained at the level of December 2017.
We mention that the provisions of the Emergency Ordinance apply to individuals who fall in the above mentioned category, whose gross monthly salary is increased by at least 20% compared to December 2017 (the gross salary in December 2017, mentioned here includes the initial gross salary and salary-related items that are granted each month, under the provisions of the individual employment contract valid in the month of December 2017, which represents the calculation basis for the mandatory social contributions).
The positive difference between the health insurance contribution due and that one calculated, according to the provisions of the Fiscal Code and the contribution retained in accordance with the provisions of this Emergency Ordinance, is set by the employer and is distinctly highlighted as the amount deducted in Statement 112.
b) The calculation basis for the social security contribution related to social health insurance indemnities is modified, meaning that the calculation basis for the social security contribution (for individuals benefiting from medical leave and social insurance indemnities) was 35% of the gross average earnings corresponding to the number of working days of sick leave, and currently, as a result of the amendments made by this Emergency Ordinance, the calculation basis for the social security contribution will be the sickness insurance indemnity paid by the employer or paid from the Single National Health Insurance Fund (CASS).
Starting with January 2018, individuals who are employed on the basis of an individual part-time employment contract, shall pay social security and social health insurance contributions in relation to their gross income and the difference up to the level of the contributions related to the minimum gross national salary (1900 lei) shall be incurred by the employer, on behalf of the employee (for those employees for which it exists the obligation to compute this contributions at the level of the minimum gross salary guaranteed in payment).