- Income support for workers
Fondul de garantare pentru plata creanţelor salariale
Guarantee fund for debt salaries
The Guarantee Fund for debt salaries is designed to ensure payment of wage claims arising from both employment contracts, and collective agreements concluded by employers that are in insolvency state. The Romanian law does not distinguish between different categories of workers, so the Fund covers all employees, either on fixed-term, or open-ended contracts, and regardless of their position in the company.
Employers must pay a monthly contribution to the Guarantee Fund, amounting to 0.25% of the total monthly wages. By the 25th of every month, employers have the obligation to notify to the fiscal administration the monthly amount of contribution to be paid to the Guarantee Fund. The Fund is administrated by the National Agency for Employment (Agenția Națională pentru Ocuparea Forței de Muncă, ANOFM), through its local agencies.
Outstanding wages or compensatory payments and indemnities for temporary interruption of activity can be paid from the Guarantee Fund's resources. The Fund cannot pay the outstanding social contributions of companies in insolvency.
Employees may claim the outstanding wages for a period of up to three calendar months in case their employer is in insolvency. Employees or organisations representing them may apply for payment from the territorial employment agency themselves, or the payment application may be filed by the legal administrator of the insolvent employer. Claims for the payment of overdue salaries are assessed by the local employment agencies, which also make the actual payments. Outstanding salaries are paid out of the Guarantee Fund regardless of whether the insolvent employer had paid the contribution to the Guarantee Fund in time. The total amount of the outstanding claims incurred by the Guarantee Fund may not exceed the amount of three monthly salaries at national level per employee.
- National funds
Public employment services
The fund is administered by the National Agency for Employment, through its local agencies.
Each year, the law on social security sets certain amounts for the Guarantee Fund for debt salaries, in the fields of both income and expenses. The difference remains at the state budget. Since 2010, these amounts were:
- 2010: €56 million income from employers' contributions and €4.7 million paid to employees
- 2011: €44 million income from employers' contributions and €15 million paid to employees
- 2012: €47 million income from employers' contributions and €6 million paid to employees
- 2013: €56 million income from employers' contributions and €5.8 million paid to employees
- 2014: €60 million income from employers' contributions and €9.6 million paid to employees
- 2015: €54.5 million income from employers' contributions and €4.8 million paid to employees
- 2016: €67 million income from employer's contribution and €4.8 million paid to employees
- 2017: €79 million income from employer's contribution and €5 million paid to employees
- 2018: €174 million income from employer's contribution and €4.9 million paid to employee
- 2019: €188 million income from employer's contribution and €3.8 million paid to employee.
This measure is meant to protect the employees in the event of insolvency of their employer, in particular by guaranteeing the payment of their outstanding claims.
No information available.