Romania’s Chamber of Deputies voted yesterday the law that removes the RON 3,400 (EUR 762) ceiling for the parental leave allowance.

The current law provides that the parents who stay at home with their newborns get 85% of their salary from the state, up to a maximum RON 3,400. However, the new law allows them to earn 85% of their actual salary and stay with their children for two years after they are born.

The MPs voted the new law, although the Government asked the Parliament to indicate the financing source. The budgetary impact of this new law is some EUR 180 million per year, according to the Labor Ministry, reports local Mediafax.

The Government may challenge the law at the Constitutional Court.

The law will enter into force after President Klaus Iohannis signs it.

editor@romania-insider.com