Last updated: 2 October 2014
PARENTAL LEAVE ALLOWANCE: MORE PERMISSIVE RULES
After maternity leave, one of the parents may benefit from a parental leave for children aged between 1 and 2 years, respectively 3 years if the child is disabled. This type of leave can be requested by the mother or the father to their employers, if they have earned a taxable income within the last 12 months preceding the application for such leave and also in case they have received unemployment benefits or if their business is suspended for economic reasons.
Until present, the parental leave pay granted to one of the two parents could not be cumulated with other revenues, except for certain such revenues expressly provided by Ordinance no. 111/2010. From now on, after the entry into force of Law no. 126/2014, parents can cumulate this pay with other revenues and, moreover, they can benefit from a tax exemption.
CUMULATING PARENTAL LEAVE PAY WITH OTHER TYPES OF INCOME
Until the entry into force of Law no. 126/2014, the right to receive a parental leave pay was terminated when the beneficiary obtained a taxable income during the parental leave for 1 year, 2 year or 3 year-old child, if the child was disabled.
The right to receive the parental leave pay was not suspended when:
- The beneficiary received sums of money under a collective labor contract or an individual labor contract, during their parental leave, other than for activities carried out during this period
After the entry into force of Law no. 126/2014, the right to receive the monthly pay is not suspended if:
- The beneficiary receives an indemnity, regardless of its amount, as a member of the Local or County Council (the former provisions referred only to members of Local Councils and the amount of the indemnity was not specified).
- The beneficiary obtains taxable income by performing an actual activity during his/her leave, of 6 SRI at most (ISR is the Social Reference Indicator, equal to 500 lei in 2014) during a calendar year. Consequently, the beneficiary will be allowed to obtain additional income of 3,000 Lei/calendar year, in addition to the statutory maternity pay.
PAYMENT EXEMPTION
Law no. 126/2014 instituted a tax amnesty for beneficiaries who obtained income during parental leave and who were obliged to return the parental leave pay, as well as to pay penalties and for beneficiaries who were obliged to return the parental leave pay, calculated incorrectly because of errors made by civil servants.