CAS might go down 5%

The Government is planning to cut the level of social security contributions (CAS) from 52% to 47%, because the work force costs are very high, the Delegate minister in charge of keeping in contact with the social partners Marian Sarbu said in Bistrita on Tuesday. He explained the project actually originated from the Finance Ministry, which would soon submit it to the Government. The Finance Ministry is to also discuss the project with the International Monetary Fund delegation due to arrive in Romania by mid month. This statement was Marian Sarbu’s answer to the accusations of the employers’ associations’ representatives, who said taxation was making them prefer investments in technology to those in work force. “The work force costs are huge in Romania,” Sarbu admitted, mentioning the issue would be on the Government’s agenda during a meeting scheduled for next week. The governmental official added salaries in Romania were very small, so that as long as the work was not paid accordingly, there was no way to motivate people to work. The Government early this year cut the total social security contributions from 57% to 52% of the gross salary. Such contributions now amount to 35% for employers and 17% for employees, and are among the highest in Europe. ZF