Romania: New incentives to stimulate employment of unemployed individuals

A new Government Ordinance No. 60/2018 has introduced higher incentives for unemployed individuals that are registered as unemployed with the local authorities, are not receiving unemployment indemnity and get employed. The same Ordinance has introduced higher incentives for the companies that hire certain categories of unemployed individuals.

Unemployed individuals that do not receive unemployment indemnity and get employed can benefit from an employment bonus that is not subject to tax, payable in 2 installments, the first one when receiving employment and the second one after 3 month of being employed. Also, in order to encourage companies to offer employment to certain categories of unemployed individuals – such as young individuals that just finished a form of education, individuals that require professional training, individuals that are 5 years from the age or retirement or early retirement and individuals that are at risk of being socially marginalized, the Ordinance establishes higher incentives. The incentives for the companies are of 2.250 RON/month (approximately 490 Euro) and the period of time the companies can benefit from this incentives differs for each type of employed individuals. These measures are meant to encourage long term employment.