Payment of contributions on part-time contracts

Order of the Ministry of Finance (MF) no.1855 on the procedure for implementing the provisions of Article 146 paragraph (57) letter e) of Law no.227/2015 on the Tax Code was published in the Official Gazette (Part I) no. 807 of 16 August 2022.

More specifically, the document covers the application of the new provisions of the Tax Code concerning the payment of contributions by part-time workers at the level of a full minimum wage, starting with income for August 2022.

According to Article 1, paragraph (1), the procedure applies to employees who earn during the same month income from wages or similar income on the basis of two or more individual employment contracts, and the cumulative monthly calculation basis is at least equal to the level of the gross minimum wage per country guaranteed in payment in force in the month in which they were earned, according to Article 146 paragraph (57) letter e) of Law No. 227. /2015 on the Fiscal Code, with subsequent amendments and additions, and who owes the social insurance contribution and the social health insurance contribution at the level of the calculation base related to the income earned, determined according to the specific rules of each contribution, and not at the level of the gross minimum wage per country guaranteed in payment, corresponding to the number of working days in the month in which the contract was active.

Thus, according to MF Order no.1855/2022, employees in the situation provided for in Article 146 paragraph (57) letter e) of the Fiscal Code are obliged to submit to each employer/income payer a declaration on their own responsibility, showing that they earn income from wages or similar salaries on the basis of two or more individual employment contracts, and that the monthly cumulative calculation basis is at least equal to the gross minimum wage guaranteed in payment.

It is important to note that the declaration on own responsibility is not submitted to the employer where the employee has a gross monthly income at least equal to the gross minimum wage per country guaranteed in payment corresponding to the number of days worked in the month.

The declaration on own responsibility shall be submitted monthly, for the period during which the employee is in the above-mentioned situation, until the 5th of the month following the month for which the salary rights are established.

In order to complete the self-declaration by the deadline for submitting it, each employer/income payer shall issue to the employee, upon request, a document showing the level of the monthly basis for calculating the social insurance contribution and the health insurance contribution related to income from wages and salaries.

If the employees do not submit the declaration on their own responsibility, each employer/income payer shall set the social insurance contribution and the health insurance contribution at the level of the minimum gross national wage corresponding to the number of working days in the month in which the contract was active, if the calculation basis for the income earned, determined according to the specific rules for each contribution, is below the level of the minimum gross national monthly wage guaranteed in payment.

In order to fall within the situation provided for in Article 1, the employee shall aggregate the level of the monthly calculation base relating to income from wages and salaries from each employer, and the resulting amount shall be compared with the level of the guaranteed gross minimum wage per country in force in the month for which social contributions are due.

 

If the employees do not submit the declaration on their own responsibility, the contributions are withheld from the employee at the level of the calculation base related to the realized income, determined according to the specific rules of each contribution, and each employer/payer of income bears the difference of contributions calculated at the level of the gross minimum wage per country guaranteed in payment, according to Article 146 paragraph (56) of the Tax Code.

We mention that the declaration on own responsibility is a supporting document for each employer/payer of income, in order to establish the social insurance contribution and the health insurance contribution due in accordance with the provisions of Article 146 paragraph (5) and Article 168 paragraph (5) of the Tax Code, for the period during which the employee is in the situation provided for in Article 146 paragraph (57) letter e) of the Tax Code.

The employer/income tax payer, as the case may be, is obliged to record and keep records of these declarations, in order to classify the employee in the situation regulated by Article 146 paragraph (57) letter e) of the Tax Code.

The declaration on own responsibility must contain the identification data of the employee, as well as information regarding the classification of the employee in the situation provided for in Article 146 paragraph (57) letter e) of the Tax Code.