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Romania: New Employment Law – Nanny Allowance

Romania: New Employment Law – Nanny Allowance

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Parents will now be entitled to an allowance for nannies.

According to a new law sent to the President for enactment, the Romanian Parliament has established that an allowance will be granted to parents by local authorities to cover the costs of nannies. In order to benefit from such allowance, the following conditions must be met:

(i) A family’s average income per family member is not more than LEI 3,500 (approx. €725);
(ii) The children are pre-school-aged (up to six years old) and are not attending nursery/kindergarten or the applicant has not withdrawn the children from such programs;
(iii) Only the parent who lives with the children will benefit from the allowance;
(iv) The parent must be the child’s legal guardian and be responsible for the child’s care;
(v) The allowance cannot be granted during childcare leave or if the applicant has not paid local property taxes;
(vi) The nanny is the person designated by the parent to take care of the child when the parents are absent.

The net average salary of the applying parent for the past six months will be used to calculate the fulfilment of the condition mentioned under (i) above. The allowance is granted monthly for each pre-school-aged child, depending on the family’s net income divided by the number of family members, as follows:

Up to LEI 2,100 – an allowance of LEI 710;
Between LEI 2,101 and LEI 2,500 – an allowance of LEI 550;
Between LEI 2,501 and LEI 3,000 – an allowance of LEI 390;
Between LEI 3,001 and LEI 3,500 – an allowance of LEI 250.

When the law is enacted by the Romanian President, it will enter into effect three days after its publica-tion in the Official Gazette. The law may also be challenged before the Romanian Constitutional Court.

By Mircea-Catalin Roman, Senior Associate, Noerr

Romanian Knowledge Partner

Țuca Zbârcea & Asociații is a full-service independent law firm, employing cross-disciplinary teams of lawyers, insolvency practitioners, tax consultants, IP counsellors, economists and staff members. It also operates a secondary law office in Cluj-Napoca (Romania), and has a ‘best-friend’ agreement with a leading law firm in the Republic of Moldova. In addition, thanks to the firm’s dedicated Foreign Desks, the team provides the full range of services to international investors seeking to gain a foothold or expand their existing operations in Romania. Since 2019, the firm and its tax arm are collaborating with Andersen Global in Romania.

Țuca Zbârcea & Asociaţii is providing legal services in every aspect of business, covering all major areas of practice: corporate and M&A; litigation and international arbitration; corporate tax; public procurement; TMT; employment; insurance; banking and finance; capital markets; competition; healthcare and pharmaceutical; energy and natural resources; environmental; intellectual property; real estate; regulatory legal services.

Țuca Zbârcea & Asociaţii is a First-Tier law firm in all international legal directories and a multiple award-winning law firm both locally and internationally. It received the CEE Deal of the Year Award (DOTY Awards 2021) and the Law Firm of the Year Award: Romania (IFLR Europe Awards 2021). 

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