Medical leave notice. How does the Government want to solve the problem of the new tax

Prime Minister Marcel Ciolacu announced that he will establish, together with the Minister of Health and the Minister of Finance, a “road map” in the case of medical leaves. The announcement comes as a result of the protests regarding the introduction of a new tax.

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“I also want to establish today with the Minister of Health, Alexandru Rafila, and the Minister of Finance a road map regarding the resolution of medical leave situations for patients with serious illnesses and pregnant women. I discourage and we must discourage the abuse of unjustified medical leaves, but there is also a need for legislative clarification to support those in situations where this type of leave is mandatory”. stated Ciolacu, in the Government meeting.

On Wednesday, the Alliance of Chronic Patients from Romania requested the Parliament and the Government to cancel the 10% tax for all medical leaves, both for chronic diseases and for acute conditions, maternity leaves, medical leaves for caring for a sick child, medical leaves received in case of accidents, according to Agerpres.

According to the cited source, the Alliance of Chronic Patients from Romania emphasized in a press release that the 10% tax on medical leaves “puts undue pressure” on chronic patients.

“No chronic patient chooses when to get sick and when to be hospitalized. Chronic disease of any kind has a natural evolution that is not subject to the arbitrary decisions of the authorities. We ask the Parliament and the Government of Romania to cancel the 10% tax for all medical leaves, both for chronic diseases and for acute ailments, maternity leaves, medical leaves for caring for a sick child, medical leaves due to accidents. If the Government considers that medical leave is being abused, to initiate investigations to identify and punish the abuses. All Romanians cannot be punished just because those who abuse medical leave have not been identified“, claims the quoted source.

Medical leaves, taxed identically to a salary

Employees who fall ill and have to take sick leave will receive less money from February 2024 after the Government introduced a 10% levy.

Taxation was introduced by an emergency ordinance. Until the end of 2023, from the amount of the sick leave allowance, only the social insurance contribution (CAS) of 25% and the income tax of 10% were withheld, without withholding the health social insurance contribution (CASS) of 10%

Thus, the hitherto non-applicable 10% health tax applies not only to employees, but also to other categories of people, including those who take out voluntary medical leave insurance (such as PFAs and liberal professions).

In other words, starting from January 1, 2024, medical leave is taxed identically to a salary, i.e. 45% compared to 35% until December 31, 2023, imposing the 10% income tax, the pension contribution of 25% plus the contribution to health that was not perceived until now.