Law 263/2019 – published in the Official Gazette no 1054 of December 30, 2019, part I – eliminates the provision introduced in 2017, whereby wages for part-time employment contracts (<8h / day) were taxed at least at the minimum wage value on economy’s level.
Starting with January 1, 2020, part-time employment contracts are taxed with social contributions at their real value, at the gross income obtained by the employee.
Thus, the following is repealed:
1. Article no. 146, paragraph (5 index 1) of the Fiscal Code
- “The social insurance contribution (CAS) due by the natural persons who obtain income from wages or assimilated to wages, based on an individual full-time or part-time employment contract (…) cannot be lower than the contribution level of social insurance calculated by applying the quotas established (…) on the minimum gross basic salary in the country in force in the month for which the social insurance contribution is due, corresponding to the number of working days of the month in which the contract was active”.
2. Article no. 168, paragraph (5 index 1) of the Fiscal Code, which applies the same taxation principle in the case of the social health contribution (CASS).
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