5 February 2025

No charging of full social security contributions on contracts of mandate

The government has abandoned its plan to make all contracts of mandate subject to social security contributions, regardless of the level of income. This decision is part of a revision of the National Reconstruction Plan, aimed at avoiding the risk of losing EU recovery funds.

The government's argument is that most individuals working under civil-law contracts are already insured on some other basis. Instead, other reforms are planned, including amendments to the Labour Code that would introduce favourable rules for establishing length of service for people previously employed under civil-law contracts or the self-employed. Also, a reform is being planned of social security for those working in the arts.

Moreover, the government intends to strengthen the powers of the National Labour Inspectorate by giving inspectors the right to unilaterally convert civil-law contracts into employment contracts.