Romania Slashes Child-Rearing Benefits By 25% Starting June 1 – PM Adviser

Romania’s Labor Ministry has decided to cut 25% of the child-rearing benefit, currently standing at 85% of the parent’s average income for the previous year, starting June 1, Andreea Vass-Paul, economic adviser to Prime Minister Emil Boc, told MEDIAFAX Friday.

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Imaginea articolului Romania Slashes Child-Rearing Benefits By 25% Starting June 1 – PM Adviser

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According to Vass, from June 1 the benefit will be lowered to 64% of the parent's average wage for the previous year, provided the sum is no lower than RON600 and no higher than RON4000. Beneficiaries will receive the indemnity for the first two years of the child's life.

The benefit cut will remain in force until Romania manages to reduce its debt "to acceptable levels", Vass said.

The final austerity plan will be decided upon Monday, after debates within the Economic and Social Councils.

During the past few days, the Labor Ministry has debated whether to lower the child-rearing benefit by decreasing the yearly income percentage or by allotting a fixed sum to all beneficiaries.

Romanian President Traian Basescu told a press conference Thursday that he hopes child-rearing benefits are "minimally affected" by the recently announced austerity measures.

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.

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