Romanian Tax Consultants Challenge Social Security Calculation for Part-Time Employees on Medical Leave

Romanian tax consultants are raising concerns over new technical guidance for the Declaration 112 form, which they say incorrectly calculates social security contributions for part-time employees who also take medical leave.

The Chamber of Fiscal Consultants (CCF) argues that the instructions include days of medical leave in the calculation of the minimum threshold for social security contributions (CAS). This approach, the CCF contends, contradicts the Fiscal Code.

The issue specifically affects part-time employees who work only part of a month and use the remaining days for medical leave. The technical documentation from the National Agency for Fiscal Administration (ANAF) suggests a formula that incorporates both worked days and medical leave days for calculating the minimum threshold. The CCF disputes this, stating that the Fiscal Code's Article 146, paragraph (5^6) should only consider days when the individual employment contract was active and the employee was working.

Consultants argue that medical leave suspends the employment contract, and thus including these days in the threshold calculation extends the period beyond what the Fiscal Code intends. This could lead to a higher CAS amount for employers, as the base for the contribution might be artificially inflated. The CCF is urging the Ministry of Finance and ANAF to clarify the legal basis for this formula and provide guidance on how to correctly complete and validate Declaration 112.

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The rule introduced in the technical documentation does not result from the text of art. 146 para. (5^6) of the Fiscal Code, but actually seems to contradict it.