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Romania

2. State Aid

Employees that had their individual employment agreement suspended due to direct or indirect measures taken in order to limit the risk of Covid-19 infection were granted an indemnity of 75% of their salary but no more than 75% of the average monthly salary for 2020 during the state of emergency period. This indemnity continued to be granted to affected employees in industries that are not yet reopened even after the state of emergency ended.

  • The state also subsidises part of the salary for the employees that resume their activity after the suspension of their individual employment agreement. The employer can receive from the state 41.5% of the employee’s salary for up to 3 months after the employee resumes the activity if that employee was suspended for at least 15 days. The employer should not dismiss the employee until 31st of December 2020 in order to benefit from this state aid, with the exception of employers that have seasonal activities. Employers that hire individuals over the age of 50 years that were dismissed as a result of the pandemic can receive 50% of the salary of their new employee, but no more than 2.500 lei, for 12 months if they continue the employment for a minimum of another 12 months. The same state aid is available for employers that hire unemployed individuals (that are registered as such at the Unemployment Authority) between 16 years and 29 years and also for employers that hire Romanian nationals that were dismissed for reasons that are not related to their conduct by foreign employers while working in a foreign state. Employers that do not comply with the requirement of maintaining the employment for the required duration will return the amounts received from the state plus the legal interest rate.
  • Additional benefits such as prolonged terms for the payment of state and local taxes were also granted to companies in order to limit the effects of the pandemic.
Any questions

Ask our member firm Magda Volonciu and Associates in Romania