Legislative changes on medical leave, unemployment benefits, tax incentives and the minimum wage. Find out how they impact employers and employees!

The recent increase in the cost of living and the need to stimulate Romania’s economic recovery have led to changes in the rules for sick leave, unemployment, tax benefits and the minimum wage.

For managers, the changes mean adjusting internal policies and managing additional costs and risks. For employees, they affect how benefits, unemployment benefits, and actual salary income are calculated.

• As a manager, are you wondering how these measures will influence your hiring plans and salary costs?
• As an employee, are you wondering what changes are occurring in your rights to benefits and incentives and how they affect your income?

Ioana Dobre, Senior Consultancy Manager at BIA Human Capital Solutions, presents all the essential information in the legislative newsletter, so that you can understand the direct impact of these measures on your business and your financial situation.

In this newsletter, you will find:

• How the new rules regarding sick leave and payment of benefits are applied.
• What measures stimulate employment and support the employment of NEET youth and other vulnerable categories.
• Tax incentives for employees and companies, intended to contribute to Romania’s economic recovery.
• The new level of the country’s gross minimum wage and its impact on wage costs.

Changes to sick leave allowance. Find out who pays it based on the days taken

After identifying many fictitious sick leave claims, the authorities have introduced new rules that clarify how benefits are calculated and who pays them in the first days of sick leave. It is essential to know how these changes impact you as an employer or employee.

Order no. 521/500/2026 amending and supplementing the Norms for the application of the provisions of Government Emergency Ordinance no. 158/2005 regarding leaves and social health insurance benefits, approved by Order of the Minister of Health and of the President of the National Health Insurance Funds no. 15/2018/1311/2017, published in Official Gazette no. 155/27.02.2026, makes the following clarifications:

Comment: this Order establishes specific provisions for sick leave certificates issued between February 1, 2026 and December 31, 2027, and social health insurance benefits.

Thus, for sick leave certificates issued between February 1, 2026, and December 31, 2027, social health insurance benefits are calculated and paid by reducing by one day and are borne as follows:

• By the employer, from the 2nd day up to and including the 6th day of temporary incapacity for work, in the case of benefits for temporary incapacity for work, except for benefits related to sick leave certificates granted to insured persons for whom the isolation measure was instituted, according to Law no. 136/2020, republished, with subsequent amendments and completions.
• From the budget of the Unique National Health Insurance Fund, starting with:
• The day following those borne by the employer according to letter a), and until the date of cessation of the insured’s temporary incapacity for work or his retirement.
• The 2nd day in the case of benefits that are fully covered, according to the law, from the budget of the Unique National Health Insurance Fund.

The daily average of the calculation basis for sick leave benefits, as well as the method of establishing and calculating the amount of the related benefit in these situations, are specifically regulated by this Order.

Remember: The periods of reduction in the social health insurance allowance constitute an insurance period for holidays and social health insurance allowances, while maintaining the insured person’s status within the social health insurance system.

Attractive bonuses for hiring NEETs (young people without jobs or education) and vulnerable groups

Attractive bonuses for hiring NEETs (young people without jobs or education) and vulnerable groups

To stimulate re-entry into the labor market and support the employment of vulnerable groups, the authorities have introduced clear measures that benefit both employers and employees. Emergency Ordinance No. 11/2026 establishes rules for the recovery of undue unemployment benefits, the registration of the unemployed in the records of employment agencies, as well as monthly bonuses for the employment of NEET (Not in Education, Employment or Training) young people and other categories of unemployed.

Emergency Ordinance no. 11/2026 amending and supplementing Law no. 76/2002 on the unemployment insurance system and employment stimulation, published in Official Gazette no. 181/09.03.2026, makes the following clarifications:

• The amounts found as damages by the competent control bodies, representing unemployment benefits granted unduly, are recovered without the imposition of accessory tax obligations, if they are returned by the beneficiaries within a maximum period of 180 days from the communication of the decisions issued by the employment agencies, under the terms of the law.
• Unemployed people who do not benefit from unemployment benefits must apply to employment agencies to be registered for mediation.
• New provisions are introduced for young NEETs – thus, young NEETs registered in the records of county employment agencies, respectively of the municipality of Bucharest, who are employed for the first time, full-time and for an indefinite period, according to the law, benefit from a non-taxable stability premium, for which no mandatory social contributions are due, granted monthly, for a period of 24 months from the date of employment, as follows:

1. 1000 lei monthly, for the first 12 months from the date of employment.
2. 1250 lei monthly, for the next 12 consecutive months.

Young NEETs who find employment in the following categories of entities don’t benefit from the stability premium:

1. public institutions and authorities, regardless of their financing and subordination.
2. economic operators, namely: autonomous regies established by the state, national companies/companies, as well as companies in which the state is the sole shareholder or holds a majority stake, as the case may be; autonomous regies established by the administrative-territorial units, as well as companies in which the administrative-territorial units are sole shareholders or hold a majority stake, as the case may be;
3. autonomous public authorities/agents/institutions under the coordination/subordination of the Romanian Parliament.
4. national research and development institutes under the authority/coordination/subordination of the competent central and local public ministries/authorities.
5. institutes/national institutes/commissions/specialized commissions that are under the coordination/authority/subordination of central or local public administration authorities, which benefit from public funds to carry out their activities, whose leaders have the capacity of credit authorizing officer, even if they have functional and financial autonomy.

Benefits for employers if they employ unemployed people, NEET youth and vulnerable categories

• Employers who employ, for an indefinite period, unemployed persons over 50 years of age, unemployed persons who are sole breadwinners of single-parent families, long-term unemployed persons, young NEETs, persons in one of the situations provided for in art. 16 letter g) of the law, mothers who are unemployed with at least 3 dependent children, aged up to 18, or persons who are unemployed and who have served a custodial sentence or who have been sentenced to the execution of a sentence, an educational measure or other non-custodial measures ordered by judicial bodies, receive monthly, for a period of 12 months, for each person employed in these categories, an amount of 2250 lei, with the obligation to maintain the employment or service relationship for at least 18 months.
• Employers who employ unemployed persons who, within 2 years from the date of employment, meet the conditions for requesting early retirement or the granting of an old-age pension, if they do not meet the conditions for requesting early retirement, benefit monthly, during the employment period, until the date of meeting the respective conditions, from an amount of 2250 lei.

Tax advantages for employees and companies to relaunch Romania’s economy

To accelerate economic recovery and stimulate productive investments, the authorities have introduced tax measures and facilities that benefit both employees and companies. Emergency Ordinance no. 8/2026 regulates tax deductions for investments in shares, bonds and participation certificates, facilities for contributions to occupational pensions and even bonuses for individuals who meet certain conditions.

Emergency Ordinance no. 8/2026 on the establishment of economic recovery measures, increasing productive investments and competitiveness, as well as amending and supplementing certain normative acts in the fiscal-budgetary field, published in Official Gazette no. 147/25.02.2026, makes the following clarifications:

Comment: This Emergency Ordinance regulates measures to revive Romania’s economy in accordance with the government’s objectives regarding the introduction of measures to support taxpayer compliance, stimulate investments, exports and taxpayers’ economic activity, as well as accelerate modernization through domestic investments and the strategic mobilization of domestic capital towards sectors with high added value, investments with significant impact on the economy, ensuring the premises for a resilient and sustainable economic recovery in the long term.

Among the aspects of interest introduced by this normative act, we list:

• employees will benefit from deductibility, when calculating the tax on income from salaries, of the amounts borne by employees for the acquisition of shares, bonds and/or participation titles issued by collective investment undertakings in tradable securities, starting with the income related to March 2026, for such shares, bonds/participation titles issued by collective investment undertakings in tradable securities, paid and settled on March 1, 2026 (within a ceiling of 400 euros/year).
• In the category of non-taxable income that falls within the monthly ceiling of 33% of the basic salary, in addition to contributions to voluntary pensions and those representing contributions to voluntary pension schemes, administered by authorized entities, established in member states of the European Union or belonging to the European Economic Area, are also added those administered by authorized entities in a state adhering to the liberalization codes of the OECD (Organization for Economic Cooperation and Development).
• At the same time, in the category of non-taxable income within the monthly ceiling of no more than 33% of the basic salary and contributions to an occupational pension fund according to Law no. 1/2020 and those representing contributions to occupational pension schemes, qualified as such in accordance with the legislation on occupational pensions by ASF, administered by authorized entities established in member states of the European Union or belonging to the European Economic Area or by authorized entities in a state adhering to the OECD liberalization codes, borne by the employer for its own employees, within the limit of 400 euros/year for each person.
• A rebate is introduced for individuals, in the amount of 3% of the income tax due on income earned in 2025, who are obliged to submit the Single Declaration (form 212) if certain conditions strictly provided for by the Emergency Ordinance are cumulatively met.

READ ALSO: 

The Achievements of the BIA HCS Immigration Consultancy Team in 2025 and the Objectives for 2026

Why Outsourcing HR in 2026 Is Worth It – Overcome the most common myths!