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Romania – COVID-19: Measures for Social Protection and Income Support

Romania – COVID-19: Measures for Social Protection...

Under the terms of a government emergency ordinance, Romania’s government is taking steps to address the short-fall in income that people and businesses may be experiencing. The measures pertain to the technical unemployment allowance, the granting of free paid days to parents for the purpose of child-care, and the payment of the return to work incentive (“stimulent de inserție”), amongst others.

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Mădălina Racovițan

Tax Partner, Taxation Services, Head of People Services

KPMG in Romania

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Measures for social protection and income support introduced by the Romanian government’s Government Emergency Ordinance no. 30/2020 (GEO 30/2020) entered into force on 21 March 2020.1  The measures are focused on supporting individuals and businesses, under certain conditions, experiencing a reduction in their income due to the restrictions imposed by the government in Romania to help prevent the spread of the coronavirus and COVID-19 in the country.  In this GMS Flash Alert, we provide a high-level summary of the key measures introduced.

For the full report, see “GEO 30/2020 – Social protection measures during the state of emergency due to COVID-19,“ (22 March 2020), a publication of the KPMG International member firm in Romania.

WHY THIS MATTERS

These measures for social protection and income support in Romania are intended to help mitigate the financial challenges faced by households during the COVID-19 pandemic.  As the economic toll of the COVID-19 outbreak mounts, Romania’s government is taking steps to address the short-fall in income that people and businesses may be experiencing.  Many of these measures may have tax, compliance, and process/administration implications.

Summary of Measures

These measures are discussed and explained in more detail in the aforementioned newsletter from KPMG in Romania; they include the following:

  • the provision of the technical unemployment allowance which can be supported by the Unemployment Insurance Budget;
  • the granting of free paid days to parents for the purpose of child-care in the case of temporary closure of educational establishments;
  • the possibility for individuals to use electronic mail as the main communication means with the social assistance-related authorities – thus, individuals can submit online their applications and necessary documents for obtaining the social benefits mentioned in GEO no. 30/2020;
  • the payment of the return to work incentive (“stimulent de inserție”) to all qualifying persons, for a continuous period of 90 days.

GEO no. 30/2020 also makes changes to GEO no. 158/2005 on medical leave and medical leave indemnities. 

FOOTNOTE

1  Government Emergency Ordinance no. 30/2020 (GEO 30/2020) has been published in the Official Journal of Romania, Monitorul Oficial, (no. 231/21.03.2020) and Government Decision no. 217/2020 on the application norms for Law no. 19/2020 on granting free paid days to parents for the purpose of child care in the case of temporary closure of educational establishments (GD 217/2020) has been published in the Official Journal of Romania, Monitorul Oficial, (no. 230/21.03.2020). The two legal texts have entered into force on their publication date, 21 March 2020.  The Monitorul Oficial can be found at: http://www.monitoruloficial.ro

The information contained in this newsletter was submitted by the KPMG International member firm in Romania.

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©2021 KPMG România SRL, a Romanian limited liability company and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

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Flash Alert is an Global Mobility Services publication of KPMG LLPs Washington National Tax practice. The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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