Pensions should be set by contributiveness and equality principle

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The National Council of the Romanian Private Small and Medium-Sized Enterprises backs the need to improve the legal framework and the reform of the public pensions system by adopting the Law on the unified public sector wage and by applying the principles of uniqueness, contributiveness and equality when establishing and paying the pensions, National Council president Ovidiu Nicolescu told a news conference on Thursday.

The National Council warns over the very high social security contribution quotas, given the high taxation on labour and business climate. Thus, according to Article 27 para. 3 of the Law on the unified public sector wage, such social security contribution quotas amount to 31.3 percent for normal work conditions that should be paid by the employer and the employees, of which 10.5 percent are due by the employees and 20.8 percent by the employers;

36.3 percent for special work conditions to be paid both by the employer and the employees, of which 10.5 percent are due by the employees and 25.8 percent by the employers; 41.3 percent for special work conditions and other work conditions in national defence, public order and national security, of which 10.5 percent should be paid by the employees and 30.8 percent by the employers.

The Council asks the relevant authorities, in the future, to take into consideration the need to cut the employers’ social security contribution quotas and to set such contributions on an annual basis by the state social security budget law.
Furthermore, the Council wants the draft law on the unified public pensions system to stipulate that all the professional brackets in the public pensions system be compulsorily insured, including the lawyers and the clergy, and such system to apply the principle of uniqueness, contributiveness and equality in establishing and paying the pensions and to abandon privileges and extra rights for certain social brackets.

If there are brackets that want to be given higher pensions than those set by the principle of contributiveness, the Council asks the authorities to adopt special legal instructions by which such amounts should be given from the budgets of the relevant ministries as special rights, Nicolescu said.

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