Romania's Government challenged at the Constitutional Court the draft law that gradually increases the benchmark used for unemployment benefits and other social security benefits, which have not been indexed for inflation over the past 12 years.

The bill voted by the Parliament does not indicate a financing source for such increases, the Government claims, Mediafax reported. It is "unpredictable and contradictory," the Government also says.

The bill, initiated by the Social Democratic Party (PSD), the Alliance of Liberal Democrats (ALDE), Pro Romania, establishes that the Social Reference Indicator (SRI), used for the calculating welfare benefits, should increase from RON 500 to RON 1,200 in the next three years. The first increase will be implemented on January 1, 2021.

The chairman of the Chamber of Deputies' Labor Committee, Social Democrat Adrian Solomon, estimated the expected impact of this gradual increase at RON 0.23 bln (EUR 40 mln) in 2021, another RON 0.17 bln in 2022, and finally RON 0.17 bln in 2023. 

andrei@romania-insider.com

(Photo source: Gov.ro)