Situation:
One person works as a day labourer in agriculture. In the year 2023, they earn a gross income of more than six minimum wages.
Does this day labourer pay health insurance contributions?
Solution:
According to article 76, paragraph (2), letter s) of Law no.227/2015 on the Tax Code, the taxation rules for income from salaries also apply to the following types of income, considered as assimilated to salaries:
(…) r) the gross remuneration received for the activity performed by day labourers, according to the law;.
Thus, according to the current tax regulations, the remuneration received by day labourers represents income assimilated to wages.
According to Article 170, paragraph (2) of the Tax Code, the annual limit of at least 6, 12 or 24 gross minimum wages per country, as the case may be, in force at the time of submission of the declaration provided for in Article 120, is achieved by aggregating the income provided for in Article 155 paragraph (1) letter b) – h), as follows:
a) the net/gross income or the norm of income from self-employed activities, established in accordance with Articles 68, 681 and 69, as the case may be;
b) net income from intellectual property rights, determined after the flat-rate expenses provided for in Articles 72 and 721, and net income from intellectual property rights determined in accordance with Article 73;
c) the net income distributed from associations with legal persons, taxpayers according to the provisions of Title II or Title III, determined according to the provisions of Article 125, paragraphs (8) and (9);
d) gross income, net income or income norm, as the case may be, for income from the transfer of the use of property, determined in accordance with Articles 84 to 87;
e) the income and/or net gain from investments, determined in accordance with Articles 94 to 97. In the case of interest income, the amounts received shall be taken into account, and in the case of dividend income, the dividends received and distributed as from 2018 shall be taken into account;
f) the net income or income norm, as the case may be, for income from agricultural, forestry and fish farming activities, established in accordance with Articles 104 to 106;
g) gross income and/or taxable income from other sources, determined in accordance with Articles 114 to 116.
Thus, we note that the remuneration received by day labourers is not part of the income that is taken into account in the analysis of the limit for CASS payment.
In addition, according to article 9, paragraph (3) of Law no. 52/2011 on the exercise of occasional activities by day labourers, the activity carried out under the terms of this law does not give the day labourer the status of insured in the public health system.
It can be provided optionally in the public health system according to the provisions of Article 180 of Law No. 227/2015 on the Fiscal Code, as amended and supplemented.
Please note that in the event of an accident at work or occupational disease, the beneficiary is obliged to pay for the necessary medical care.
According to article 180, paragraph (1), letter c) of Law no. 227/2015 on the Fiscal Code, the following individuals may opt for the payment of the contribution: (…) c) individuals who earn income of the kind referred to in article 155, for which no health insurance contribution is due.
In conclusion, individuals who earn income similar to wages (in the case of day labourers), for which the social health insurance contribution is not due, may opt for the payment of CASS by filing a single declaration, but they are not obliged to do so regardless of the amount of the allowance received, even if it exceeds 6 minimum wages per economy.
Legal basis:
– Fiscal Code (approved by Law no. 227/2015, published in the Official Gazette no. 688 of 10.09.2015), as amended and supplemented;
– Law no. 52/2011 on the exercise of certain activities of an occasional nature carried out by day labourers – Revision, as amended and supplemented;
– Methodological Norms for the application of the Tax Code (approved by HG no.1/2016).