The CAS owed by the employers, reduced by 5 percent in October

The law no. 123/2014, document that regulates the reduction by 5 percentage points of the employer contributions to social security (CAS), was published in the Official Gazette on 2014, September 19.

The Tax Code provided that, for the public pension system, the social insurance contributions (CAS) are, according to the working conditions:

31.3% for normal working conditions, of which 10.5% for individual contribution and 20.8% for the contribution payable by the employer;
36.3% for exceptional working conditions, of which 10.5% for individual contribution and 25.8% for the contribution payable by the employer;
41.3% for special working conditions and other conditions of work, of which 10.5% for individual contribution and 30.8% for the contribution payable by the employer.

The values of the new CAS shares

Following the publication of Law no. 123 / 2014 in the Official Gazette, the CAS share values are reduced by 5 percent, as follows:

26.3% for normal working conditions, of which 10.5% for individual contribution and 15.8% for the contribution payable by the employer;
31.3% for exceptional working conditions, of which 10.5% for individual contribution and 20.8% for the contribution payable by the employer;
36.3% for special working conditions and other conditions of work, of which 10.5% for individual contribution and 25.8% for the contribution payable by the employer.

Romania, with an employer CAS share of 15.8%, ranks No. 2 in the region after Slovakia (14%) and ahead of Poland (16.26%).

The effect of reduced CAS is translated, primarily by lowering the costs of employment. The measure comes into force starting with the incomes of the next month after the entering into force of the law, on 2014, October 1, as shown in the law 123/2014. The employers will apply the new CAS shares for the payroll of October.

For an average gross salary of 2300 lei, the employer would pay less with 115 lei per employee, taxable amount calculated if an employee works in normal conditions and has only a salary income.

Consult also the Smart Update – Employer CAS reduction, CASS certificate