The "sickness tax". Prime Minister Ciolacu intervenes again on sick leave: Only pregnant women, emergencies, and cancer patients will not have to pay (Video)

The "sickness tax". Prime Minister Ciolacu intervenes again on sick leave: Only pregnant women, emergencies, and cancer patients will not have to pay (Video)

The government approves, on Thursday, an emergency ordinance exempting the payment of 10% health contribution (CASS) for medical leave granted to mothers with sick children, pregnant women, patients with oncological conditions, and emergency cases.

Prime Minister Marcel Ciolacu threatened, if necessary, to call the entire leadership of the National Health Insurance House to work today, during the government meeting, to approve this act.

„We start by solving, as promised in recent days, the issue of medical leave. Today, we introduce, through an emergency ordinance, the exemption from paying the social contribution for medical leave allowances for mothers with sick children, pregnant women, patients with oncological conditions, and emergency cases,” declared the Prime Minister.

„If necessary, we will call the entire leadership of the National Health Insurance House to work at the Government today. We must approve this act today. For people suffering every day matters enormously,” added the head of the Executive.

Today’s statements by the Prime Minister seem to contradict, in some places, what he was saying just yesterday on the subject.

Ciolacu was asked on Wednesday what is happening with law that eliminates the CASS contribution for medical leave, blocked in the Chamber of Deputies after passing the Senate. Here is the dialogue:

Marcel Ciolacu: „First of all, I, as the Government, cannot come up with something, because it is a normative act, it is an ordinance that entered Parliament. I would violate a decision of the Constitutional Court. Look, it’s very clear. I am firmly convinced, my colleagues in Parliament will make a decision. On the other hand, I don’t understand what the overtaxing is.”

Journalist: 10%.

Marcel Ciolacu: „No, that is a level that everyone, including me and you, pay 10% to CASS. On income. Medical leaves are income. Yes? What I told you very clearly is that for those with chronic illnesses, for the sick… with cancer, for young mothers, I totally agree, it should be eliminated. Look, I will talk to Mr. Simonis (President of the Chamber of Deputies) and we will do it very quickly, hopefully this week.”

However, the Prime Minister has decided to issue a new emergency ordinance instead of speeding up the process in Parliament, which would have completely eliminated CASS for all medical leaves.

Employees on sick leave pay an additional 10% health contribution from the allowance received during the illness period.

The measure came into effect on January 1, 2024, and applies even to cancer patients who need time off for periodic treatments.

Until now, employees received 75% of their salary during sick leave.

The Senate eliminated, back in February, the 10% tax on medical leave. Through the adopted amendment, the taxation of maternity leave and leave for caring for a sick child was also eliminated. The law went to the Chamber of Deputies, where it got stuck.

The decision for additional taxation comes after last year Prime Minister Marcel Ciolacu expressed dissatisfaction that many employees abuse medical leaves. He stated that he found medical leave reimbursements worth 6 billion lei in 2023.

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