Romania: New employment law – nanny allowance
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children are pre-school-aged (up to six years old) and are not attending nursery/kindergarten or the applicant has not withdrawn the children from such programs;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.