Romania plans to remove ceiling for maternity benefits

Romania's Chamber of Deputies may adopt several changes to the legislation related to parental leave and the monthly allowance for raising children. The changes were discussed in the Chamber's Labor Committee on March 8. One of the most significant changes is that there will no longer be a ceiling for the child-raising allowance. So far, the monthly benefit was 85% of the parent's average income prior to the child's birth but couldn’t go over RON 3,400 (some EUR 760). The mothers (or fathers) who apply for parental leave will get monthly allowances equal to 85% of their average net revenues in the previous 12 months, but not less than 85% of the gross minimum wage in Romania, reports local Hotnews.ro. The minimum wage amounts to RON 1,050 (EUR 235) per month, but it will increase to RON 1,250 (EUR 280) starting May 1. This means that the child raising allowance will also go up from May. The same allowance will be granted until the child is two years old. Under the current law, the parents had to choose if they took one year off or two years off. If they took two years off, they would only get up to RON 1,200 (EUR 270) per month, which is why many parents with higher revenues only took one year off. Moreover, if the mothers decide to go back to work, they will receive an insertion incentive equal to 50% of the guaranteed minimum allowance. For the women who have twins, triplets or more children, the monthly allowance goes up by 85% of the gross minimum wage. These changes should enter into force starting July 1, 2016. The Chamber of Deputies is to give the final vote. Most parents in Romania take just one year for parental leave. Irina Popescu, irina.popescu@romania-insider.com