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Factsheet for measure RO-2020-16/372 Updated – measures in Romania

Allowance for self-employed and non-standard workers

Indemnizatie pentru liber profesionisti

Country Romania , applies nationwide
Time period Temporary, 16 April 2020 – 31 May 2020
Context COVID-19
Type Legislations or other statutory regulations
Category Income protection beyond short-time work
– Extensions of income support to workers not covered by any kind of protection scheme
Author Victoria Stoiciu (European Institute of Romania)
Measure added 08 April 2020 (updated 10 August 2021)

Background information

Freelancers, authorized individuals, individuals deriving incomes exclusively from copyright and related rights are not covered by any social protection mechanism, such as unemployment benefit, etc. The activity of these categories is defined by the Civil Code and not by the Labor code, consequently, the freelancers do not have any entitlements resulting from an employment relationship. Exceptionally, due to the impact of COVID-19 pandemic, that resulted in the interruption of activity of thousands of freelancers, the Government decided they shall benefit from an indemnity of 75% of the average gross salary for 2020 RON 5,429 (€1,100) during the entire state of emergency.

Content of measure

GEO 30/2020 establishes that professionals within the meaning defined by the Civil Code, such as authorized individuals, as well as the individuals deriving incomes exclusively from copyright and related rights and the persons who entered into individual employment conventions based on Law 1/2005, who interrupt their activity as a result of COVID-19 during the state of emergency instituted by the Decree shall benefit from an indemnity of 75% of the average gross salary for the year 2020 RON 5,429 (€1,100). Similarly, trainers, athletes, masseurs, physical therapists, whose activities have been suspended during the state of emergency, at the initiative of the sports organisation, shall benefit from an indemnity of 75% of their monetary rights, within the same threshold applicable to employees (maximum 75% of RON 5,429 RON (€1,100). These indemnities will be borne from the state budget, and will require payment of social security contributions and health insurance contributions in compliance with the provisions of the Fiscal Code.

Updates

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

14 May 2020

In May 2020, through the GEO 70/2020, the Government prolonged the application of the measure until 31 May 2020.

Use of measure

Romania has about 1.7 million self-employed, most of them in agriculture. However, most of the self-employed are not eligible for the indemnity provided by the state - most of the self-employed are not legally registered as such, others don't fulfill the legal criteria. By now, it is difficult to estimate the number of beneficiaries of this measure, but most probably it will not exceed 100,000.

Target groups

Workers Businesses Citizens
Self-employed
Workers in non-standard forms of employment
Does not apply to businesses Does not apply to citizens

Actors and funding

Actors Funding
National government
Public employment service
National funds

Social partners

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

Trade unions Employers' organisations
Role Consulted Consulted
Form Consultation through tripartite or bipartite social dialogue bodies Consultation through tripartite or bipartite social dialogue bodies

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

  • Unknown
  • Main level of involvement: Peak or cross-sectoral level

Involvement

The social partners have been consulted in the framework of the National Tripartite Social Dialogue Council.

Views and reactions

Unknown.

Sources

Citation

Eurofound (2020), Allowance for self-employed and non-standard workers, measure RO-2020-16/372 (measures in Romania), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/RO-2020-16_372.html

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