Note: The Romanian Tax Code has been substantially reformed between 2017 and 2018. The contribution rates have been significantly modified between 2017 and 2018, in particular as regards the division between the employer's share and the wage share. The information mentioned in this guide is applicable as of January 1, 2018. For updated information, please refer to the National Fiscal Assistance Agency website.
The social security system in Romania provides unemployment, pension and health insurance, as well as maternity leave for Romanian resident citizens. Nationals of foreign countries resident in Romania may also receive Romanian social security benefits under certain conditions.
Social security is funded by contributions of employees, employers, and those who are self-employed.
Employees and self-employed people registered with the Romanian authorities are automatically enrolled in the social security system. In certain circumstances, immediate family members may also be covered by the social security scheme, if they do not make any income.
Pension contributions (CAS) paid by the employee amount to 25% of the gross salary. An additional contribution is provided for the employer if his employees work in difficult (4%) or special (8%) conditions. These contributions finance retirement and disability pensions. Contributions for accidents at work and occupational diseases are included in the employer's share. The employee's pension insurance contribution includes a contribution of 3.75% to private sector supplemental pension funds.
Contributions to the sickness insurance scheme (CASS) paid by the employee amount to 10% of the gross salary. The employer is liable for a contribution of 2.25% intended to finance the benefits of sickness and maternity insurance, unemployment insurance and work-related illnesses. Contributions for sick leave, parental leave and social benefits are included in employee and employer shares.
Contributions for unemployment insurance are included in the employer's share.
The health insurance benefits are given on the basis of the Social Security Card, which has been introduced in Romania in 2015. The Social Security Card is issued by the National Health Insurance House ("CNAS") to all contributors to the social insurance scheme, and activated by the family doctor. Once activated, most health care services are free in the Romanian state hospitals for the owners of the Social Security Card.
Sick pay refers to temporary work incapacity because of illness. All insured persons are eligible for the statutory sick pay, if they are employees or work under service-provider contracts and have contributed to the Health Insurance Scheme for a minimum of one month during the previous 12 months. Sick pay does not apply to self-employed people.
The amount of the sick pay is 75% of the calculation basis, which is the person's average salary for the previous 6 months, and cannot exceed 12 times the value of the minimum gross national salary. Medical leaves start from the fourth day of absence, and require a valid medical certificate to be presented. The minimum gross national salary for 2018 is 1,900 RON.
In order to be eligible for maternity leave, the person must have contributed to the Health Insurance Scheme for a minimum of one month before taking the leave. The duration of the maternity leave in Romania is 126 calendar days, divided into 63 days before birth (pregnancy leave), and 63 days after birth (nursing leave). Both may be compensated between each other, as long as the nursing leave is not less than 42 calendar days.
Maternity pay is designed to allow the mother to take time off work to have a child. The amount of the maternity pay is 85% of the computation basis, which is the contributor's average salary for the previous 6 months, and cannot exceed 12 times the value of the minimum gross national salary. Women under maternity leave cannot be dismissed.
Fathers are also entitled to a maximum of five working days of parental leave, to be taken in the first 42 days after the birth of the baby.
According to Romanian law, for accidents illnesses or disabilities that occur during working hours or because of hazardous working conditions, the contributor is entitled to a maximum of 180 days special medical leave. The allowance amount for this leave is at 80% of the person's average gross salary during the previous six months.
Social security agreements exist between Romania and EU countries, enabling expatriates to remain under their home country's social security scheme for a period.
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