As of February 1 and until the end of the year, employers may put employees on furlough for a maximum three months, during which time they are exempt from paying social security.
However, employers will have to state their company’s difficult situation in an affidavit and will be subject to fiscal authority controls. Employees put on furlough get 75% of their base wage, which is not subject to taxation.
At the same time, the Government will enforce a series of rules to prevent employers from abusing furlough. Employers will be required to submit an affidavit proving their situation and will be subject to regular controls by the Labor Inspection Department and Fiscal Administration Agency.
The Government said the furlough extension is needed to protect jobs, „as the effects of the economic crisis are estimated to last,” and to avoid „losing” skilled workers in fields which have the potential to develop/expand once the economy recovers.
The Government earmarked 439.2 million lei (EUR1=RON4.1214), namely RON73.8 million from income tax and RON365.4 million from social security contributions, for furlough measures targeting around 200,000 employees. According to the Government, should the 200,000 people be laid off later, unemployment aid for nine months would amount to RON1.3 billion.