The Romanian government, led by the Social Democratic Party (PSD), has decided to implement a series of controversial reforms, despite protests on the streets of the country and strong opposition both from trade unions and business leaders. While the government, and the media that supports it, have claimed that the ongoing changes will ultimately lead to salary increases, the majority of analysts expect them to have the opposite effect.
Social security contributions paid by employee, rather than employer. The most significant measure is that social contributions will now be paid by employees, as opposed to employers. Currently, 39.25% of workers’ gross salary is paid to the state, as contributions to pay for the public pension (first pillar), health insurance and unemployment benefit. Currently, the payment is made by the employer to the state. However, technically, the contributions are split, with some covered by the company
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