Allowance for the technical unemployment to be reimbursed from the budget of the unemployment fund

The normative framework for granting and collecting the amounts received from the State Unemployment Fund is given by art. XI – XV of GEO no. 30/2020.

The employees who have the employment contracts suspended at the initiative of the employer, pursuant to art. 52 paragraph (1) lit. c) of the Labor Code, can receive an allowance for the technical unemployment paid from the Budget of the Unemployment Fund for the period of emergency status.

The gross allowance is 75% of the basic salary, but it cannot be more than 75% of the average gross salary used to substantiate the law of the state social insurance budget. In 2020, the average gross salary is 5,429 lRON, so the maximum gross allowance is 4,071 RON, respectively 2,381 RON net.

What categories of employees can benefit from the technical unemployment benefit?

There are two categories of employees who can benefit from this allowance:

a) the employees of the employers who have interrupted the activity totally or partially as a result of the measures taken by the public authorities for applying the state of emergency. These employers must hold an Emergency Certificate, which will be issued by the Ministry of Economy.

b) employees of the employers who reduce their activity as an effect of the epidemic and do not have the financial capacity to make the payment of wages. Unfortunately, for this category of employees, only 75% of employees with active labor contracts, existing on March 21, 2020, the date of entry into force of the ordinance, can benefit from compensation.

For this second category of employees, where the activity of the employer was reduced, the payment of the allowance will be made on the basis of a Declaration on the own responsibility of the person representing the employer, from which it will be shown that the incomes from the month before the filing of the declaration decreased by a percentage of at least 25% compared to the average of the incomes of January and February 2020 and the employer mentions that he cannot pay the salaries. So it’s about cash collection and not about the level of revenue or turnover.

The model of the declaration will be adopted by order of the Minister of Labor.

In order to settle the amounts from the State Unemployment Fund, the employers must submit in the current month for the previous month, by email, to the local agency for employment, a written request accompanied by the list of persons who benefit from this allowance.

The payment of the indemnities from the unemployment fund is made within 30 days from the date of the submission of the documents.

The indemnity is subject to income tax from salaries and compulsory social insurance, which are withheld by the employer from the amounts received from the unemployment fund. So, the gross compensation is reimbursed.

In conclusion, the following documents will be sent by email to the agency for employment:

a) For employees whose activity ceased or was diminished as a result of the decision of the authorities as a result of establishing the state of emergency:

        • Application, Annex no. 1;
        • Emergency certificate;
        • The list of persons receiving the allowance.

b) For the employees whose activity was reduced, generated by the overall economic situation:

        • Application, Annex no. 2;
        • Statement on your own responsibility with the diminution of the Income;
        • The list of persons receiving the allowance.
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