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Romania to pay benefits to workers temporarily sent home by firms

Romania’s Prime Minister Ludovic Orban announced that, under a provision to be included in the economic stimulus package, the state will pay benefits to workers temporarily sent home (under technical unemployment) by local companies because of the coronavirus crisis. 

Romania’s Prime Minister Ludovic Orban. Photo by LCV/Shutterstock.com

The draft law submitted by the main opposition party the Social Democratic Party (PSD) to the Parliament provides that the employees sent in technical unemployment receive 75% of the basic salary in the form of a benefit, not subject to income tax, paid from the state social insurance budget, as long as the state of emergency is maintained in the country.

The bill, however, stipulates that the employers must maintain the workplaces and hire again the employees after the state of emergency.

The government has also decided to raise the ceiling for credit guarantees for small- and medium-sized enterprises affected by the coronavirus crisis by RON 5 billion (EUR 1.03 million), Orban said on March 17, romania-insider.com reports