The Czech Republic ranks fourth with 21.5%, followed by Hungary with 27%.
For an employee with a gross salary of RON 1,000, the employer currently pays a CAS worth RON208, which will decrease to RON158 after the CAS cut.
Even after the CAS decrease, Romania will still register one of the highest pension contributions paid by employees in the region, of 10.5%, compared to Slovakia and the Czech Republic, with 4% and 6.5% respectively, according to Accace.
Prime Minister Victor Ponta stated last week that the social security contributions will be lowered by five percentage points as of October 1, impacting the budget by RON850 million, without increasing the budget deficit.
Ponta added that the measure does not have the approval of the International Monetary Fund (IMF), and is undertaken by the Romanian Government, as the IMF only calls for observing macroeconomic targets. (EUR1=RON4.4040)