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Empoyers might be tax exempt if rising low salaries

de V.O.
Joi, 8 octombrie 2009, 20:02 English | Business

Romanian Finance minister Gheorghe Pogea considers the possibility to exempt employers from paying the 16% flat tax for any increase of low salaries, that is salaries between 600 and 1,000 Romanian lei, Romanian news agency NewsIn reports.

He said that a first effect of such a measure would be "whitening" salaries paid in the economy as employers would rise salaries in a move which, tax exempt, would not rise costs directly.

Pogea said he would analyze a proposal in this regard, with the acceptance of trade and employers unions, by Monday. The move would affect some 2.5 million Romanian employees with salaries lower than 1,000 lei.

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