Last updated: 3 November 2016
The Romanian Government recently passed Emergency Ordinance no. 60/2016 (published in Official Journal no. 773/04.10.2016), in order to reduce unemployment by granting an incentive to unemployed people who go back to work.
This incentive is granted to unemployed persons who move to another town in order to find a job. Furthermore, in accordance with the Ordinance, employers that employ certain social categories will be granted financial incentives. These measures will be covered by external non-refundable funding and national funding from the social security insurance fund.
Please find hereinafter a presentation of the most important changes brought by Ordinance no. 60/2016, which will become effective in December and which amends Law no. 76/2002 on the unemployment insurance system.
INCENTIVES FOR PEOPLE WHO RETURN TO WORK
Unemployed persons registered with the National Employment Agency who find a job in a locality situated more than 50 kilometers from their usual domicile and change their domicile or residence in the said locality in order to occupy that position will benefit from a financial incentive of 12;500 Lei (approximately 2,780 Euros).
Unemployed persons who change heir domicile or residence in a locality situated more than 50 kilometers from their usual domicile will receive a financial incentive of 15,500 if they are accompanied by their family (approximately 3,450 Euros).
As for unemployed couples (husband and wife) who move to another locality, the first one will receive a financial incentive of 15,500 Lei and his/her partner will receive a relocation bonus of 3,500 Lei (approximately 780 Euros). This incentive is granted in two instalments – the first instalment when the couple is relocated and the balance upon expiry of 12 months from employment.
Unemployed persons have to refund the relocation bonuses if they leave their job within 12 months for certain reasons (termination of the employment contract by agreement of the parties, dismissal for serious misconduct, remand custody or incarceration) or if they return to their former domicile.
Unemployed persons registered with the National Employment Agency who no longer receive unemployment benefits can receive a non-taxable bonus of 500 Lei if they return to work and their employment contract is valid for more than 3 months.
INCENTIVES GRANTED TO EMPLOYERS
Employers who hire young graduates will receive a monthly bonus of 900 lei for 12 months for each graduate. Contracts with such graduates must be permanent and employers must not have concluded another employment contract, for the same job, with a young graduate during the last 2 years. Such incentive is not granted for the periods when the employment contract is suspended.
Furthermore, employers who employ, under a permanent contract, unemployed people aged 45 or more, single parents, long-term unemployed persons or NEET youngsters (unemployed people aged between 16 and 24, who are not currently studying and who do not participate in any professional training program) will receive a monthly bonus of 900 Lei for 18 months, for each such person they employ. Employment contracts concluded with such persons must be in force for at least 18 months (otherwise, the bonus and the corresponding interest will have to be refunded).
Following the entry into force of Ordinance no. 60/2016, the Implementing Regulations of Law no. 76/2002 on the unemployment insurance fund will also have to be amended until December.
We hope you found this information useful!