Background information

The Guarantee Fund is designed to ensure payment of wage claims arising from both employment contracts, and collective agreements concluded by employers that are in insolvency. 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.

Content of measure

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. 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.

Use of measure

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. 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.

• 2020: €254 million income from employer's contribution and €2.3 million paid to employees.
• 2021: €263 million income from employer's contribution and €22 million paid to employees.
• 2022: €333 million income from employer's contribution and €14.5 million paid to employees.
• 2023: €375 million income from employer's contribution and €4.78 million paid to employees.
• 2024: €28.39 million income from employer's contribution and €17.10 million paid to employees.

On 23 September 2024 an ordinance of the government amended the social insurance budget. The income for the employer's contribution was increased by approx. €1 million and the amount paid to the employee by approx. €9.3 million.

Target groups

Workers	Businesses	Citizens
Employees in standard employment	Applies to all businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government Public employment service	Companies National funds

Social partners

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

	Trade unions	Employers' organisations
Role	Unknown	Unknown
Form	Not applicable	Not applicable

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

• Unknown
• Main level of involvement: Unknown

Involvement

Unknown

Views and reactions

Unknown

Sources

• 25 May 2006: Act 200/2006 regrading the establishment and utilisation of a guarantee fund for debt salaries; Act 571/2003 Fiscal Code (in Romanian) (legislatie.just.ro)
• 11 May 2010: Eurofound, EMCC support of restructuring (www.eurofound.europa.eu)
• 11 May 2010: Restructuring: support measures for affected workers (www.eurofound.europa.eu)
• 06 June 2011: Deutsch, A. (2011), Europäische Beispiele für die Insolvenzentgeltsicherung, Federal Ministry of Labour, Social Affairs and Consumer Protection/IEF, Vienna. (apps.eurofound.europa.eu)
• 21 February 2013: Social insurance budget law for 2013, no. 6/2013 (in Romanian) (www.mmuncii.ro)
• 10 December 2013: Social insurance budget law for 2014, no. 340/2013 (in Romanian) (www.ces.ro)
• 29 December 2014: Social insurance budget law for 2015, no. 187/2014 (in Romanian) (mmuncii.ro)
• 16 February 2017: Social insurance budget law for 2017, no. 7/2017 (in Romanian) (static.anaf.ro)
• 03 January 2018: Social insurance budget law for 2018, no. 3/2018 (in Romanian) (static.anaf.ro)
• 18 December 2018: Social insurance budget law for 2016, no. 340/2015 (in Romanian) (static.anaf.ro)
• 11 March 2019: Social insurance budget law for 2019, no. 47/2019 (static.anaf.ro)
• 06 January 2020: Social insurance budget law for 2020, no. 6 from 6 January 2020 ( LEGEA nr. 6 din 6 ianuarie 2020 bugetului asigurărilor sociale de stat pe anul 2020) (static.anaf.ro)
• 18 March 2021: Social insurance budget law for 2021, no. 16 from 18 March 2021 (LEGEA nr. 16 din 8 martie 2021 bugetului asigurărilor sociale de stat pe anul 2021) (static.anaf.ro)
• 28 December 2021: Social insurance budget law for 2022, no. 318 from 28 December 2021 (LEGEA nr. 318 din 28 decembrie 2021) (static.anaf.ro)
• 19 December 2022: Social insurance budget law for 2023, no. 369 from 19 December 2022 (LEGEA nr. 369 din 19 decembrie 2022) (mmuncii.ro)
• 28 December 2023: Social insurance budget law for 2023, no. 422 from 28 December 2023 (LEGEA nr. 422 din 28 decembrie 2023) (legislatie.just.ro)
• 23 September 2024: Government Ordinance 114/2024 for amending the state social insurance budget for 2024 (Ordonanță de urgență nr. 114 din 23 septembrie 2024 pentru rectificarea bugetului asigurărilor sociale de stat pe anul 2024) (legislatie.just.ro)