Romanian Parliament Considers Exempting Health Contributions for Medical Leave Allowances
In a recent development, members of the Romanian Parliament, particularly from the National Liberal Party (PNL), have put forth amendments that, upon closer inspection, seek to exempt health contributions (CASS) for medical leave allowances. The potential impact of these amendments, if implemented, could lead to a considerable annual budget loss of around 600 million Lei, as reported by Profit.ro.
Background:
Originally introduced by the PSD-PNL government in December, the health contribution (CASS) for medical leave allowances was set at 10%, creating a notable fiscal impact. However, recent amendments proposed by PNL parliamentarians aim to revert to the pre-existing situation, eliminating the health contribution altogether.
Financial Ramifications:
The proposed exemption from health contributions for medical leave allowances could result in a substantial loss for the state budget. Calculated over a year, the estimated impact stands at approximately 600 million Lei. This move is seen as a departure from the earlier announcement of a 10% tax reduction on medical leave allowances.
Parliamentary Intentions:
The intention to introduce these amendments was announced earlier this week, and today, in parliamentary committees, discussions are underway within the Budget-Finance Committee and the Labor Committee. The proposed amendment seeks to eliminate the 10% taxation on medical leave allowances.
Comparative Analysis:
It’s crucial to note that if the 10% tax were to be eliminated, the beneficiaries of medical leave allowances would have received less income compared to the complete removal of CASS. This situation highlights the complexity of the fiscal considerations surrounding medical leave allowances.
Government Response:
Prime Minister Marcel Ciolacu has acknowledged the need for a comprehensive approach to address the complexities surrounding medical leave, particularly for patients with serious illnesses and pregnant women. The Prime Minister is expected to collaborate with the Ministers of Finance and Health to establish a roadmap for sick leave policies.
Source: Profit.ro
Editor: Andreea Gudin
The diplomatic daily newspaper Nine O’Clock does not assume responsibility for the information received and published on the public website. The responsibility for the content lies solely with the issuer of the press release.
The diplomatic daily newspaper Nine O’Clock cannot be held accountable for false information transmitted by the recipients of the press releases/announcements.
The diplomatic daily newspaper Nine O’Clock reserves the right not to publish press releases that contain inappropriate expressions or accusations and violations of the rights of other individuals, guaranteed by the Constitution of Romania.
The content of the website www.nineoclock.ro is intended for public information. Copying, reproduction, recompilation, modification, as well as any form of content exploitation from this website are prohibited. The use of the Comments section signifies your agreement to abide by the terms and conditions regarding the publication of comments on www.nineoclock.ro.
