Minimum contributions for part-time contract

The recent Decree Law No. 4 of July 20, 2017 introduced an important novelty regarding mandatory social contribution for part-time employee contracts and effective August 1, 2017 (wages accruing in August 2017).

Prior to the amendment, the monthly basis for calculating social security contributions was the gross salary earned by the employee in the reported month.

As of January 1, 2017, on the other hand, regardless of the type of contract entered into (part-time or full-time), the taxable base taken into account for the calculation of monthly social contributions is if the gross monthly salary received is less than the minimum gross monthly salary in force according to the Law (1,450 lei currently) is in any case the legal minimum gross salary on a monthly basis.

The Law provides for some exceptions; the most important ones concern disabled persons, employees who having entered into multiple part-time employment contracts cumulatively on a monthly basis receive gross wages at least equal to the Law’s minimum gross wage.

We remain available for any clarification.