Legislative Newsletter – 1st of July 2016

 LEGISLATIVE NEWSLETTER

 

Contents:
 

  • Government Emergency Ordinance no. 26/2016
  • Government Decision no. 449/2016
  • Ministerial Order no. 1099/2016
  • Joint Ministerial Order no. 936/448/2016
  • Government Emergency Ordinance no. 20/2016

 

Government Emergency Ordinance no. 26/2016

Government Emergency Ordinance no. 26 of 28.06.2016, published in the Official Gazette of Romania Part I no. 486 of 29.06.2016, amending Law no. 277/2010 on family support allowance

An important provision introduced by this Emergency Ordinance is that the payment of the family support allowance shall be resumed ex officio for the family allowance recipients whose rights were suspended starting from April 2016, as a result of their failure to pay their property taxes to the local budget pursuant to Law 227/2015 on the Tax Code, as further amended and supplemented, and such payment shall also include the benefits falling due in the period of suspension

Government Decision no. 449/2016

Decision no. 449 of 22.06.2016, published in the Official Gazette of Romania Part I no. 473 of 24.06.2016, amending and supplementing the Methodological norms for the application of Emergency Ordinance no. 111/2010 on parental leave and child care allowance, as approved by Government Decision no. 52/2011

We should begin by noting that the people who, during the 2 years preceding the date of birth of a child, for at least 12 months earned incomes from salaries and similar incomes, from self employment, agricultural, forestry and fishing activities subject to income tax pursuant to the Tax Code, shall be entitled to parental leave and child care allowance until the child’s 2nd birthday, respectively 3rd birthday in the case of a disabled child. Accordingly, the option of the parental leave until the 1st child’s birthday shall be eliminated.

The monthly allowance mentioned above shall be 85% of the net average incomes earned in the last 12 months during the 2 years preceding the child’s date of birth, but it cannot be less than 85% of the gross national minimum wage guaranteed.

 

The above period shall be established as follows:

a)     12 consecutive months, if in this period the person continuously earns taxable incomes and/or one or more of the situations referred to in Article 2 (5) of the emergency ordinance occurs;

b)    12 successive months during which the conditions for allowance granting are met, if in the 2-year period there were interruptions in the earning of taxable incomes and/or the occurrence of one or more of the situations referred to in Article 2 (5) of the emergency ordinance.

 

As far as the insertion incentive is concerned, it is noted that, if the entitled person earns taxable incomes for at least 60 days before the 2nd child’s birthday, respectively the 3rd in the case of a disabled child (including the period referred to in Article 11 (2) of the Emergency Ordinance), the insertion incentive shall be granted until the 3rd child’s birthday, respectively the 4th child’s birthday in the case of a disabled child.

It should be recalled that the amount of the monthly insertion incentive is 50% of the minimum amount of the allowance determined in accordance with Article 2 (2) of the Emergency Ordinance (the minimum amount being 85% of the in gross national minimum wage guaranteed). It results that the amount of the insertion incentive is RON 531.25.

Finally, it should be specified that the allowance relating to the parental leave cannot be cumulated with the insertion incentive.

 

Ministerial Order no. 1099/2016

Order no. 1099 din 23.06.2016, published in the Official Gazette of Romania Part I no. 474 of 24.06.2016, approving the implementing Article III (1) of Law no. 66/2016 amending and supplementing Government Emergency Ordinance no. 111/2010 on parental leave and child care allowance.

1) Pursuant to the provisions of Article III of Law no. 66/2016 amending and supplementing Government Emergency Ordinance no. 111/2010 on parental leave and child care allowance, the persons caring for young children under 2 years old, who are granted parental leave and child care allowance for them under Article 2 (1) (a) of the Emergency Ordinance or were granted such entitlements before the insertion of the amendments made by Law no. 66/2016, shall benefit from the extension or, as appropriate, the resumption of the period for which the child care allowance is granted.

2) For the persons mentioned above, the extension, respectively the resumption of the parental leave and payment of the monthly child care allowance shall be done based on an application accompanied by supporting documents relating to the suspension of taxable earnings. The application model is set out in the Annex to these Instructions, which forms an integral part thereof.

3) The persons who are on parental leave until the 1st child’s birthday and receiving the related monthly allowance shall submit the above mentioned application at least 30 days before the child reaches the age of 1, but not earlier than 1 July 2016, in order to obtain the prolongation of their parental leave entitlements.

4) For the persons referred to in point 1 above who, on the date of entry into force of Law no. 66/2016, are guaranteed the payment of the insertion incentive, on the unpaid leave provided for in Article 6 din Emergency Ordinance or in one of the situations referred to in Article 11 (2) of the same legal act, the parental leave and allowance entitlements shall be resumed starting with July 2016 if the application referred to in point 2 above is submitted before 1 August 2016.

5) For the persons referred to in point 1 above, whose children reach the age of 1 during the month of July 2016, the extension/resumption of the parental leave and allowance entitlements shall be done starting from the 1st child’s birthday if the application is submitted before and including 1 August 2016.

Another aspect covered by these Instructions refers to the recalculation of the amount of allowance.

 

Joint Ministerial Order no. 936/448/2016

Order no. 936 of 12.05.2016 of the Ministry of Labor, Family, Social Security and Elderly and Order no. 448 of 23.05.2016 of the National Institute of Statistics, published in the Official Gazette of Romania, Part I no. 421 of 03.06.2016, amending and supplementing the Classification of Occupations in Romania – occupation level (six characters), as approved by joint Order no. 1832/856/2011 of the Ministry of Labor, Family and Social Security and of the President of the National Institute of Statistics.


Government Emergency Ordinance no. 20/2016

Government Emergency Ordinance no. 20 of 08.06.2016, published in the Official Gazette of Romania Part I no. 434 of 09.06.2016, for the amendment and supplementation of Government Emergency Ordinance no. 57/2015 regarding staff salaries paid from public funds in 2016, certain time limit extensions and certain tax budgetary measures, as well as for the amendment and supplementation of certain legal acts.

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