This year’s Fiscal Code modification, through Order 79/2017, issued by the Romanian Government in November 2017, was approved by the Parliament and came into force at the beginning of 2018. Salary software developers will have to make some changes within their solutions as well.
Clarvision Payroll is one of the first solutions that updated the legislative changes within its customer database. Referring to payroll policies, the Fiscal Code was affected by some major changes and the employers had to adhere to these changes. Clarvision is supporting employers throughout the whole process.
The most important changes are the following:
Contributions pass from employee to employer
Modification of the minimum traineeship time limit in case of medical leave
Modification of healthcare insurance cuantum regarding medical leave allowance
Modification of the accounts for the accounting records of contributions
Introduction of labor insurance contribution, within the employer’s responsibility
Removal of old contributions of the employer
The layout for Declaration 112
The layout for the medical certificate and the sick-leave allowance appendices covered by the National Health Insurance Fund
These changes will affect employees’ income in the sense of a lower net salary, but they are adopted differently by enterprises: some employers raised the gross salary, taking over the losses in the profit, while others preffered to transfer these costs to the employees. Either way, Clarvision Payroll offered support for quick implementations.
In respect to the social insurance contribution quotas, these are:
25% from the employee’s side
4% in case of specific working conditions, from the employer’s side
8% in case of special working conditions, from the employer’s side
Also, we know that we have an income tax of 10%, but this is not applicable to the ones exempt from the income tax, as they won’t benefit of this decrease from 16% to 10%, so this could somehow compensate the transfer of contributions from employee to employer. Health insurance contribution will be 10% and labour insurance contribution will be 2,25%.
Wanting to contribute to the success of Romanian businesses, Clarvision offers not only technical support, but also consulting services for the HR and Financial departments inside an enterprise. Clarvision, a brand under the umbrella of NTT DATA Romania, offers both business and technical support through its expertise in IT, HR and Finance markets.