‘Cartel Alfa’ calls for participation in Wednesday’s protest in front of Gov’t headquarters

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The ‘Cartel Alfa’ National Trade Union Confederation (CNS) is calling on all its members and on citizens as well to join the protest announced for Wednesday at 14:00 hrs in the Bucharest Victoriei Square against the planned tax transfer to the employees and for pressuring the government into withdrawing the relevant ordinance, a release informs.

‘Cartel Alfa’ reiterates its stance of rejecting the fiscal project for the transfer of contributions from employer to the employee “a position CNS Cartel Alfa representatives have also expressed in the social dialogue committees of the Prefect’s Offices. We demand government institutions to publicly release the records of these sittings for a fair information. The transfer of the social contributions from employer to the employee actually represents the increase of the employees’ contributions from 32.5 percent (16.5 percent in contributions and 16 percent for tax) to 45 percent (35 percent in contributions and 10 percent for tax). The so-called tax reduction is actually an increase of the employees’ tax burden,” the release states.

The trade union confederation also argues that following the transfer of the contributions, an employee with a gross salary of 3,200 lei would only gain an additional 2 lei.

“This obviously results even from the calculation in the government’s example presentation for a gross salary of 3,200 lei: in 2017 the amount the employee and employer pay jointly for a gross wage of 3,200 lei is 1,256 lei, while in 2018 they will pay a total of 1,430 lei, so this is not a decrease, but the opposite, a tax increase. The promised tax reduction from 16 percent to 10 percent, if applied in the current system, would result in a net gain of 178 lei for the employee. But complete with the transfer, this ‘gain’ is 2 lei!”, argues Cartel Alfa.

According to a recently published draft Emergency Ordinance amending the Tax Code, beginning January 1, 2018 social contributions shall be transferred from the employer to the employee. The contributions paid for the gross salary will go down 2 percentage points from 39.25 percent to 37.25 percent.

“Of the total 22.75 percent in contributions currently owed by the employer, 20 percentage points are transferred to the employee,” the Ministry of Finance informed. Of the gross salary, 35 percent shall be contributions withheld by the employer on behalf of the employee, and the 2.75 percent left in charge of the former (after the transfer of 20 percentage points to the employee) will decrease to 2.25 percent and will cover unemployment and workplace accident risks, sick leave, salary claims.

The switch of the contributions from the employer to the employee will be enacted in an emergency ordinance to be adopted at Wednesday’s government meeting.

 

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