New call on the state aid scheme for salary costs scheduled for the beginning of June 2016

28.04.2016

The Ministry of Public Finance has just announced officially the opening of the state aid scheme regulated by Government Decision no. 332/2014 for financing salary costs. The period for submitting financing requests is scheduled for 30.05-10.06.2016, when investors may file the relevant documentation for the first stage of the evaluation process.

The total budget allocated for this first call in 2016 is of RON 250 million. The call has a length of 10 working days and the analysis of applications will start immediately after the closing of the call.

The state aid scheme has been recently subject to several changes, mainly directed towards clarifying technical aspects of the legislation and, some of them, to provide more flexibility to investors. These amendments became public through Government Decision no. 234/2016 and refer mainly to salary cost definition, set-up of new company, investment location, group policy, average number of employees, hiring plan etc. Furthermore, the new regulation brings novelties regarding payment of state aid twice per year, mandatory reports and their timeframe during the monitoring period of the project. Details concerning the start of the project and the deviations from the hiring plan have also been updated.

Following these legislative changes, the Ministry of Public Finance has also updated the Applicant’s and Payment Guides.

The annual budget allocated for this state aid scheme remains RON 450 million. The remaining sums shall be carried forward to the following call for application during the same year.

The state aid scheme for salary costs was launched in 2014 by the Ministry of Public Finance, with the main purpose to support regional development through investments that generate at least 10 new workplaces. The grant received from the Romanian state finances the gross salary and the related taxes for 2 consecutive years.