Romanian Social Security
Our tax guide for freelance contractors working in Romania
Social security contributions are payable by the employer and the employee with the employee’s part being withheld by the employer. Employees contribute 9.5% of their gross salary without a ceiling to the general social security system, 2% of which are administered by private pension funds since 17 January 2008. Furthermore, employees contribute 5.5% (from 1 July 2008) to the health insurance fund and 0.5% to the national unemployment fund. All contributions are deductible for the employee’s income tax purposes.
Employers have to pay social security contributions based on the employees’ gross salaries without a ceiling. They pay 19.5% to the general social security system (more in industries with higher risks like the chemical and mining industries); 0.85% (of the gross salary capped at 12 times the minimum national salary) to a public health fund for sickness indemnities; 0.4% to 2% to the work accident and professional illness fund (depending on risks); 5.5% (5.2% as of 1 December 2008) to the health insurance fund; 1% (0.5% as of 1 December 2008) to the unemployment fund; 0.25% to the salary guarantee fund and 0.25% or 0.75% to the Territorial Labour Inspectorate.