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In the Official Gazette from 21.03.2020, it was published the OUG No. 30 / 21.03.2020, which stipulates the situations in which the (Romanian) state will support the „technical unemployment” of the employees whose individual employment contracts have been suspended in the context of the reduction or interruption of the companies’ activity.
THE FOLLOWING CATEGORIES OF COMPANIES WHICH WILL BENEFIT FROM THIS FACILITY:
1. companies that interrupt their activity totally or partially based on DECISIONS ISSUED BY PUBLIC AUTHORITIES according to the law, during the emergency state decreed and which obtain the Certificate of emergency situations issued by the Ministry of Economy, Energy and Business Environment, stipulated in art. 12 of the Decree of the President of Romania no. 195/2020.
Employers may benefit from this facility (state-supported allowance/indemnity) for 100% of the employees.
This category includes companies whose activity has been restricted by the Military Ordinance, respectively:
- RESTAURANTS
- HOTELS,
- COFFEE SHOPS
- OTHER PUBLIC LOCATIONS
- CAFETERIAS
- COMPANIES ORGANIZING CULTURAL, SCIENTIFIC, ARTISTIC, RELIGIOUS, SPORTS, ENTERTAINMENT, GAMES EVENTS
- SPA TREATMENT COMPANIES
- PERSONAL CARE COMPANIES
2. companies that reduce their activity as a result of the EFFECTS of the COVID-19 EPIDEMY (and which are not included in the above mentioned list), which do not have the financial capacity to pay all the salaries of their employees and which register a decrease of the income from the month before filing the request for a minimum of 25% compared to the average of the income from the period of January-February 2020.
Employers may benefit from the facility (state-supported allowance/indemnity) for up to 75% of employees who have individual employment contracts active at the date of entry into force of this OUG No. 30 / 21.03.2020.
THE AMOUNT OF TECHNICAL UNEMPLOYMENT SUPPORTED BY THE STATE:
The gross compensation from which the employees will benefit will be supported by the unemployment insurance budget, but within the limit of 75% of the basic salary, capped at 75% of the gross average salary for 2020 (i.e. the gross compensation supported by the state is capped at 75% x 5,429 lei = 4071 lei, gross).
For this allowance the employee owes income tax (10%) and mandatory social contributions (CAS 25%, CASS 10%).
For this allowance the employer does not owe an insurance contribution for the work (2.25%)
PROCEDURE FOR OBTAINING THE FACILITY:
In order to obtain the payment of the „technical unemployment” allowance, the companies will electronically submit an application to the AJOFM, together with the list of employees who will benefit from this allowance.
We will get back to you next week with the complete set of documents necessary to access this facility.
IMPORTANT!
The application shall be submitted in the current month for the payment of the previous month’s allowance. Therefore, if the entry into the technical unemployment was in March, the application will be submitted to AJOFM in April (and not earlier)!
Payment of the allowance from AJOFM will be made to companies within 30 days from the submission of the application. (i.e. in the month of MAY, for the example from above).
