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March 3, 2021

The Senate approves again CAS cut, rejects request for revision of social security reduction bill

The Senate, in extraordinary meeting, rejected on Monday the request referred to Parliament by President Traian Basescu for the revision of the bill reducing the social security contribution (CAS) payable by employers by 5 percentage points.

The Senate called in an extraordinary session met on Monday afternoon in a plenary sitting to consider the revision request sent to Parliament by the head of the state.

The draft law was adopted by 96 votes for, 1 vote against and two abstentions.

The Senators were initially supposed to examine the bill on August 18, but the Standing Bureau called at that time decided to postpone the plenary discussions by one week.

President Traian Basescu signed in July the request for the revision of the law on the reduction of the social security contribution.

‘By reducing the quotas paid by employers – depending on the working conditions – as social insurance contributions to the public pensions system, the current deficit will grow by the negative financial impact estimated in the substantiation note of the regulatory act, which goes from 4.860 billion lei in 2015 to 5.564 billion lei in 2018, resulting in a deficit of more than 18 billion lei incurred by the pension fund in 2015, if we also include here the legally mandatory indexation,’ Basescu explained.

The President showed that, whereas the Government mentions in the substantiation note accompanying the bill referred to him to sign into law certain measures intended to offset the negative impact of this act, the estimation of the offsets of the negative impact of this measure for the period 2015-2018 is only vaguely expressed.

‘Having in view the evolution of the budget estimates and the less than planned collections both in 2013 and in the first six months of 2014, it is essential to have the revenue offsetting measures precisely specified in the substantiation note, as the international financial institutions (the International Monetary Fund, the European Commission, and the World Bank) have also requested,’ read President Basescu’s re-examination referral.


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