Employment Flash No. 5/2021 – News on certain measures aimed to encourage returning to work following parental leave

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12.04.2021 – The Government Emergency Ordinance no. 26/07.04.2021 for the amendment and completion of the GEO no. 111/2010 on the parental leave and monthly allowance was published within the Official Gazette no. 363 dated April 7th, 2021.

The main legal amendments introduced by the new legal provisions are centered on an increase in the amounts and diversification of cases for granting insertion incentives. More exactly:

  1. An amount of RON 1,500 (approx. EUR 300) is established as insertion incentive, if the entitled persons obtain income before the child reaches the age of 6 months, respectively 1 year in case of disabled children.

The amount of 1,500 RON is granted until the child reaches the age of 2 years, respectively 3 years in the case disabled children.

  1. An amount of RON 650 (approx. EUR 130) is established as insertion incentive, if the entitled persons obtain income after the child reaches the age of 6 months, respectively 1 year, in the case of disabled children.
  2. Further on, an insertion incentive of RON 650 (approx. EUR 130) is also established for people who have completed parental leave and obtain taxable income.

These persons benefit from such insertion incentive after the child reaches the age of 2 years, respectively 3 years in the case of disabled children, until the child reaches the age of 3 years, respectively 4 years in the case of disabled children.

Persons who benefited from such a right, as per the law (i.e., persons from points 1-2 above), until the child reached the age of 2 years (3 years for disabled children) will also benefit from the insertion incentive of RON 650 (approx. EUR 130) under these conditions.

  1. The legislative amendments refer to multiple other aspects related to granting the insertion incentive, out of which we mention:
  • the possibility of granting the insertion incentive even if the child’s certificate of disability expires after the child reaches the age of 3 years;
  • the possibility to benefit from this right, under certain conditions, even in case of establishing temporary residence on the territory of another state;
  • correlative provisions for the application of the new situations where the insertion incentive is granted (e.g. cases of suspension, resumption of rights etc.).
  1. There is also a type of insertion incentive in the amount of RON 650 (approx. EUR 130) established for persons who obtain taxable income during the period in which they are entitled to benefit from childcare leave up to the age of 7 years (for the child with a disability who reached the age of 3).
  2. In addition, persons who have in their care a child with a disability (severe or accentuated) and who benefit from a reduced work schedule of 4 hours, in accordance with the law, until the child reaches the age of 18 may choose between the allowance provided by law and the insertion incentive.

The legislative amendment also regulates several other aspects, such as the cases for suspension, respectively resumption of payment of the parental leave allowance (e.g., in the case of erroneous calculation of the allowance).

Note: Within 60 days from the publication in the Official Gazette of this GEO, the Methodological Norms of GEO no. 111/2010 will be amended accordingly by Government decision.

The main provisions of the GEO at hand do not apply yet, but will enter into force upon the entry into force of the Government decision mentioned above.

The Romanian version of this newsletter is available here.

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