Cutting social security contributions by 3% would create 100,000 new jobs

Cutting social security contributions paid by the employer and the employee by 3% (from an overall 44% to 41% of contributions for every gross salary) could lead to the creation of 100,000 new jobs, while contributions to the state budget would decline by around 380 million euros, according to specialists. The ruling coalition has discussed cutting social security contributions, and the measure could be introduced in the second half of this year. The information was confirmed by Labour Minister Ioan Nelu Botiș, who added that talks on this issue would continue this week.

The state collects around 22.9 billion lei in social security contributions in six months’ time, with contributions amounting to 44% of employees’ gross incomes. If the contribution is cut to 41%, the amount collected by the state is down to 21.3 billion lei, i.e. a decline of 1.6 billion lei (380 million euros), an amount that could remain at the disposal of companies.