Last updated: 6 November 2018
Good news for young mothers who earn income from intellectual property rights. These earnings will be again taken into account when calculating the amount of the parental leave allowance, after they were inexplicably excluded earlier this year. This change is provided by Government Emergency Ordinance (OUG) no. 81/2018, published in Official Journal no. 792 of 17 September 2018, amending Government Ordinance no. 111/2010 on parental leave and parental leave allowance.
CHANGES
In Romania, the duration of the parental leave is 2 years, but it can be extended to 3 years for disabled children. In addition, the amount of monthly parental leave allowance is determined based on the taxable income earned for at least 12 months in the two years prior to childbirth. The legislation also provides a minimum amount of the allowance (1,250 Lei/month, equivalent to 270 Euros/month) and a maximum amount (8,500 Lei/month, equivalent to 1,840 Euros month).
In order to be granted the parental leave allowance or reintegration incentive paid to parents who accept to shorten their parental leave to return to work, parents must submit an income certificate (issued by the employer or by the relevant tax authorities), i.e. the tax statement required by the law for certain categories of income for which Law no. 227/2015 does not require the issuing of a tax decision by the central fiscal body.
In accordance with article 3 of OUG no. 111/2010, these income categories are: income from wages and salaries, income from independent activities, intellectual property rights and from agricultural, forestry and fishing activities.
The new regulation also provides that persons who have applied for a legal monthly allowance, the amount of which has been set without taking into account the income earned since 23 March 2018 from intellectual property rights, can be submit directly to the relevant authorities the documents proving the earning of such income, within 60 days from the date of entry into force of OUG no. 81/2018, namely 15 November 2018.
The difference between the amounts resulting from the acknowledgement of income from intellectual property rights will be paid until 31 December 2018.
Within 30 days from 17 September 2018, the date of entry into force of OUG no. 81/2018, the Ministry of Labor and Social Justice will duly update the implementing norms of the law.