Romanian Govt Extends Welfare Granting Interval By 3 Months

Social security contributions will not be paid while the employee is in technical unemployment.

 

The decisions were regulated by emergency ordinance.

 

According to Law 76/2002 on the social security system for unemployment and the stimulation of employment, the unemployment indemnity is granted over intervals set in a differentiated manner, depending on the contribution stage: six months for people with a contribution stage of at least one year, nine months for a contribution stage of at least five years and 12 months for a contribution stage higher than 10 ten years.

 

The government later announced, through a press release, that the extension by three months of the unemployment indemnity granting interval is also applicable for people who lose their jobs after the coming into force of the emergency ordinance, but no later than December 31, 2009.

 

The exemption from the payment of social security contribution owed by employers, as well as employees receiving 75% of pay, will be granted throughout the temporary cease of employer activity, over an interval of up to three months, without loss of insurance benefits.

 

The 75% pay will not be included in salary income and will not be taxed, over an interval of at most three months in the year 2009.