On 16 November 2017, the Romanian government enacted Emergency Ordinance No. 82 (“EGO No. 82/2017”), requiring all employers operating in Romania to initiate collective negotiations on the transfer of the social security payment obligations from employers to employees. EGO No. 82/2017 requires all employers, regardless of their number of employees, to conduct these collective negotiations by 20 December 2017.
The transfer of the social security payment obligations from employers to employees is one of the drastic fiscal changes which will become effective on 1 January 2018 as a result of Emergency Ordinance No. 79 (“EGO No. 79/2017”). (Please click here for our previous article on this.) The transfer of the social security payment obligations has raised significant concerns among employees because unless employers agree to increase employees’ gross salaries with the value of such contributions, employees’ net salaries will be reduced.
Under EGO No. 82, employers must openly discuss with their employees the implementation of the provisions of EGO No. 79/2017, including the possibility of increasing gross salaries to ensure employees avoid a reduction in the net salaries.