National Employers Confederation celebrates two decades of work

The two decades of the foundation of the National Employers Confederation were marked by the idea of promoting the creation of a favorable environment for entrepreneurial activity, the Confederation’s chairman Leonid Cerescu has told IPN.

“We aimed to support the creation in Moldova of favorable conditions for developing entrepreneurial activity and to lay down clear and transparent rules of the game and equitable treatment towards all the economic entities, regardless of the size of business,” said the Confederation’s chairman. According to him, these two preconditions can ensure the sustainable development of the business sector, creation of attractive work conditions and high salaries, including for the young people, and, consequently, sustainable economic growth in Moldova.

Dozens of steps were taken in this respect during 20 years. Many of them were successful, said Vladislav Caminschi, head of the Confederation’s Internal and External Relations Division. These refer first of all to the quality of social partner of the employers in the dialogue with the Government.

Thus, together with the trade unions, the Confederation negotiates and signs with the Government collective conventions where the minimum salary for the real economy is defined. The Confederation also formulates proposals for amending the labor legislation so that this does not lag behind the changes that occur in the economy. The last minimum salary was set last May at the level of 1 900 lei. The negotiations will be resumed soon and this indicator will be reviewed, stated Vladislav Caminschi.

According to Caminschi, among the Confederation’s incontestable accomplishments is the diminution of the state social insurance contribution paid by employers. “Moldova inherited the system applied in the Soviet area, when the employer paid 35% of the salary fund, while the employer only 1%. That’s why our people get low pensions. Owing to the Confederation’s efforts, the state social insurance contribution paid by employers was gradually reduced and was redistributed. The employer now pays 23%, while the employee - 6% ,” he explained.

As regards the income tax paid by enterprises, the National Employers Confederation considers the current rate of 12% is acceptable when all the business entities honor this fiscal obligation. It also thinks that the decision concerning the voluntary registration as VAT payer from the 0 rate on which it insisted at the request of economic entities is beneficial.

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