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Factsheet for measure RO-1998-1/2503 Updated – measures in Romania

Builders’ Social Fund

Casa Socială a Constructorilor (CASOC)

Country Romania , applies nationwide
Time period Open ended, started on 01 January 1998
Context Restructuring Support Instruments
Type Legislations or other statutory regulations
Category Reorientation of business activities
– Matching/networking
Author Nicoleta Voicu (Association Center for Public Innovation)
Measure added 23 June 2022 (updated 25 October 2024)

Background information

According to article 3, paragraph 1 of Law 215/1997, the Builders’ Social Fund has as main objective to ensure the protection of employees in the sector of construction and building materials' production during the interruption of work due to adverse weather conditions (1 November - 31 March). This provides social protection over the coldest period of the year; during this time, even if work does not take place, employees keep their jobs, and their income is ensured from the funds of the Builders' Social House .

This instrument is available to companies from the construction sector that are members of Builders’ Social Fund.

Content of measure

Support is provided to workers who have an employment contract with the member companies. The monthly social protection benefit is 75% of the average monthly base salary of the prior three months and is paid for no more than 90 calendar days.

The monthly social protection benefit is spilt between: * Contribution from members of construction companies: 1.5% of the value of the construction/assembly production carried out and received, tax deductible. * Contribution from employees of member construction companies: 1% of gross basic salary. * Developer's contribution: 0.5% of the value of the construction estimate.

During the interruption of work, the employees benefiting from the allowance shall remain at the disposal of the economic operators, and their individual employment contracts may not be terminated for reasons connected with the restriction or he interruption of activity.

Updates

The following updates to this measure have been made after it came into effect.

29 September 2024

The monthly social protection benefit remains at 75% of the average monthly base salary of the prior three months, but since the last update the benefit will not be paid for up to 120 calendar days, but for all the period of interruption of employment.

01 January 2022

The monthly social protection benefit remains at 75% of the average monthly base salary of the prior three months, but since the last update the benefit can be paid for up to 120 calendar days, up from 90.

Use of measure

From the social protection fund, during 2020, monthly social protection benefits were paid for a total amount of €10.5 million to 28,046 beneficiaries. In 2019 the total value of the monthly social protection benefit was €9.63 million granted to 30,000 beneficiaries.

From 1 January to 31 October 2022, 560,000 social protection benefits were granted.

Target groups

Workers Businesses Citizens
Employees in standard employment
Sector specific set of companies
Does not apply to citizens

Actors and funding

Actors Funding
Trade unions
Employers' organisations
Company / Companies
Other social actors (e.g. NGOs)
Companies
Employees

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Agreed (outcome) incl. social partner initiative Agreed (outcome) incl. social partner initiative
Form Direct consultation outside a formal body Direct consultation outside a formal body

Social partners' role in the implementation, monitoring and assessment phase:

  • Only employers' organisations
  • Main level of involvement: Sectoral or branch level

Involvement

The representative trade unions and employer organisations from the construction sector set up the Builders’ Social House.

Employers’ organizations:

  • Federația Patronală Din Industria Materialelor De Construcții - Patromat
  • Asociația Română A Antreprenorilor Din Construcții - Araco
  • Patronatul Regiilor Autonome De Drumuri Și Poduri De Interes Județean Deva - Patronatul Drumarilor Din România

Trade unions:

  • Federația Sindicatelor Din Construcții Și Materiale De Construcții- Fgs Familia
  • Federația Națională Sindicală Din Construcții-Montaj - Anghel Saligny
  • Federația Sindicatelor Constructorilor Feroviari Și Căi De Comunicații - Fscfcc

Views and reactions

The social protection fund is created from the contributions of the member companies (1.5% of turnover) and of the employees (1% of their gross base monthly salary). The fund is managed by the Builders’ Social House.

Sectors and occupations

    • Economic area Sector (NACE level 2)
      F - Construction F41 Construction of buildings
    • Occupation (ISCO level 2)
      Building and related trades workers, excluding electricians

Sources

Citation

Eurofound (2022), Builders’ Social Fund, measure RO-1998-1/2503 (measures in Romania), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/RO-1998-1_2503.html

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