“We must decide (…) the direction of fiscal relaxation on the labor market: we either lower social security contributions or increase the wage base not subject to taxation of any kind, which means eliminating the 16% income tax on minimum wages,” Prime Minister Victor Ponta said Saturday.
The two options are currently analyzed by the Government to determine their impact on the state budget, Ponta said, adding that a decision will be taken this month when the Executive will draw up a draft state budget for 2014, to be sent to the Parliament in November.
Romania increased the guaranteed minimum gross wage twice this year, by 50 lei (EUR11.3) each time, from RON700 (EUR158) per month to RON800 (EUR180)/month.
On September 16, Ponta said that, if he were to choose a fiscal measure for 2014, he would rather reduce social security contributions paid by employers than increase wages or lower the value added tax. (EUR1=RON4.4306)