Romania’s Child-Rearing Benefit To Return To Fixed Rate – Sources

According to the sources, during talks with union federation leaders, Basescu suggested that the current calculation method might be discarded and the child-rearing benefit might be set at a fixed rate.

Authorities have allegedly found that the current child-rearing benefit funds are too large, given the upcoming state budget expenditure cuts.

According to Law 257/2008, taxpayers who have worked for at least one year before childbirth are entitled to a monthly benefit of either RON600 or 85% of their average income for the previous year, provided this sum is lower than RON4,000.

March statistics published by the National Agency for Labor Conscription say there are 193,004 child-rearing indemnity beneficiaries in Romania, who require total funds of RON189,883,868.

Basescu said Sunday, after talks with union federation leaders, that social benefits for children and people with disabilities will not be reduced, adding all other subsidies are further poised to „analysis, reduction or elimination.”

Official sources have told MEDIAFAX that Romania’s Government is considering taxing several social benefits, including allowances for children and the disabled, in an attempt to reduce budget spending.

Romania’s opposition social democrat leader Mircea Geoana said Sunday, after Senate representatives met with the IMF, that „less efficient” social benefits, such as child allowances and unemployment aid, might be „reorganized”. He added that he is awaiting further details from the Government.