Extension of tax measures that are beneficial to taxpayers
A recent press release by the Ministry of Finance foresees the extension of tax measures that are beneficial to taxpayers in the context of the pandemic.READ MORE
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The Romanian state has a lot of concerns to help the private sector, especially through the facilities it offers to companies to stimulate the employment and/or maintenance of employees.Read article
The Romanian state has a lot of concerns to help the private sector, which is to be appreciated. In particular, we refer to the facilities it offers to companies to stimulate the employment and/or maintenance of employees.
Unfortunately, the whole state, in its dedness, proves that it fails to put into practice all these regulations which are thus merely declarations of good intentions.
Discouraged by the lack of enforcement rules, excessive bureaucracy, confusion in interpreting provisions and contradictions even between state institutions, entrepreneurs and private managers often give up implementing the law (requiring the state to respect its own rights).
It would be normal for the state, through paid employees, to come and inform, ask companies to implement the measures ordered by law, to facilitate the implementation of such decisions. That would be normal. As this is unfortunately not the case, the role of consulting companies becomes all the more relevant.
So let’s go back to facilities. We have drawn up a list, for interested employers, with the current subsidies, aids and facilities. We invite you to go through it and contact us if you want details.
The advantage: Employers receive monthly, from the date of signing the agreement with the employment agency, over a period of 12 months, for each employee of these categories, an amount of 2.250 lei, with the obligation to maintain the employment/service relations at least 18 months after the date of employment. These are unemployed persons who are registered at work agencies for more than 12 months in the case of persons aged 25 or over a period of six months, in the case of persons aged between 16 and until reaching the age of 25
The advantage: Employers receive for 12 months a sum of 2.250 lei for each employee of this category, with the obligation to keep their employment or service relations for at least 18 months from the date of employment.
A number of facilities are also granted to the youngest, as follows:
But if you hire graduates of some educational institutions on an indefinite basis, the subsidy provided for by Law no. 762002 will count on the monthly grant of 2.250 lei per person per 12 months for each graduated school.
We note, however, that these subsidies cannot be combined in the same person. For example, the grant for apprentices, for trainees and for employed internals. Or the incentives under Law 76/2002 are not cumulated with the partial settlement of the salaries of certain unemployed employees according to the OUG 220/2020.
The coronavirus pandemic has put the state into tough tests. Once it had to intervene by supporting private companies in the effort to keep employees, but also by encouraging firms to hire some of the unemployed victims of this harmful period. Below is a summary of some of the measures taken during the crisis to support the economy and to increase or maintain employment:
The Regulation applies to employees who work for three months at the most, while employers can ask for the settlement of 41,5% of the gross wage, but no more than 41,5% of the average gross wage gain in 2020, that is 2.253 lei. The facility provided for by the 132/2020 OUG is valid until 30 June 2021.
In all areas of activity where there are business restrictions due to the coronavirus epidemic (including employers with suspended activity due to coronavirus infections), the state continues to subsidize, upon request, the technical unemployment benefits paid by employers to suspended employees. The money is requested monthly for the previous month. The allowance is 75% of the suspended employee’s gross salary, but the state covers no more than 75% of the average gross wage in 2020, that is no more than 4.072 lei. The measure is valid until 30 June.
The Kurzarbeit program is applicable in companies that have to temporarily reduce their activity due to the establishment of an alert, emergency or siege state, By up to 50% of the previous program in individual employment contracts, state aid consists of 75% compensation of the difference between full wages and reduced wages for employees who are reduced working time. The provision is valid from 30 June 2021.
For three months of their choice, for day-to-day workers in areas where the epidemic is stopped or reduced, employers can ask for 35% of their daily remuneration to be paid.
It is about the monthly settlement for 12 months of 50% (maximum 2.500 lei) of the wages of unemployed employees between January 1 and September 1, 2021. This category includes persons over 50 years of age whose employment relationships have ceased for reasons not attributable to them during the period of emergency or alert, persons between 16 and 29 years of age, including romanians made redundant abroad in 2020 out of the two age categories mentioned.