These provisions will come into force on 1 January 2027, in accordance with the amendments introduced to social security and tax legislation as part of the budgetary, tax and customs policy for 2027. They were approved by parliament during the second reading of the bill.
Currently, two rates apply when calculating social insurance contributions. One is 29 per cent for employers in state-funded institutions and local government bodies, with the exception of healthcare and higher education institutions. The second rate was set for employers in the private sector, higher education institutions and healthcare facilities, and currently stands at 24 per cent.
A single contribution rate of 21 per cent
It is worth noting that in the first draft of the 2027 tax policy, prepared in early summer under the leadership of Finance Minister Adrian Georgice, the mechanism for paying contributions to the National Social Insurance Fund (NSIF) was also due to change.
Contributions were to be reclassified as an employee’s liability. For individuals working under employment or civil contracts, a flat contribution rate of 21 per cent of the calculation base was proposed. At the same time, responsibility for calculating and transferring the funds would remain with the employer.
It should be noted that, at present, employees do not pay contributions to the social insurance fund; the employer pays the full amount on behalf of the employee. Until 2018, a different mechanism was in place: contributions were paid by both the employee and the employer, with the employer contributing 23 per cent and the employee 6 per cent.
This story was translated with the assistance of artificial intelligence.The translation was also reviewed by the Logos Press editorial team.
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