Changes regarding the granting of child raising leave and allowance, in force

Starting from September 19, a series of changes regulating parental leave and childcare allowance have come into effect. Among these are a 50% increase in the childcare allowance for children born from multiple pregnancies (twins, triplets, or higher-order multiples), as well as for mothers who give birth during their parental leave. Additionally, the taxable income threshold that a parent on parental leave can earn within a calendar year has been raised to 8 minimum allowances, up from the previous limit of 5 allowances.

These changes are included in Emergency Ordinance 164/2022, which came into effect following the amendment of the implementation rules of Emergency Ordinance 111/2010 through a decision published on September 19 in the Official Gazette – Decision no. 865/2023.

Here is the complete list of changes effective from September 19:

1. Extending the non-transferable period of parental leave for the parent who did not initially request this right (“father’s month”), from at least 1 month to at least 2 months of the total leave period, if both parents meet the legal requirements.

2. Explicit provision for the possibility of granting parental leave (and the corresponding allowance) or, if applicable, the insertion incentive, whenever the entitled person requests it, provided they meet the legal conditions at that time.

3. Increasing the taxable income threshold that a parent on parental leave can earn within a calendar year to 8 minimum allowances (previously the limit was 5 minimum allowances).

4. Counting the accommodation leave period and its corresponding allowance as an assimilated period for determining the fulfillment of the legal conditions for obtaining parental leave and the corresponding allowance.

5. Clarifying situations of recalculating the childcare allowance until the child reaches the age of 2 years or, if applicable, 3 years in the case of a disabled child, in situations of income rectification/recalculation, established by court decision or other specific acts.

6. Providing a 10-day period before the end of maternity leave or, if applicable, before the estimated date for entering parental leave, in which the employee must notify the employer of their intention to exercise this right, as well as the anticipated leave period (the employee submits a written or electronic request in this regard).

7. The obligation to maintain, until the end of the parental leave, the employment conditions and salary rights held at the start of the leave or acquired during it.

8. The right of the employee to benefit, upon returning from parental leave, from working conditions that are no less favorable, as well as from any improvements to which they would have been entitled in the meantime.

9. Addressing situations where the parent earns income both domestically and abroad, regarding the consideration of these amounts for determining the right to parental leave and allowance.

10. A 50% increase in the childcare allowance for children born from multiple pregnancies (twins, triplets, or higher-order multiples), starting with the second child, as well as in cases of overlapping pregnancies (i.e., mothers who give birth during parental leave), and establishing a minimum amount for these supplements.

11. Suspension or termination of the childcare allowance payment if the disability certificate expires during the parental leave period.

Emergency Ordinance no. 164/2022 for amending and supplementing Government Emergency Ordinance no. 111/2010 regarding parental leave and monthly childcare allowance, published in the Official Gazette, Part I no. 1173 on December 7, 2022, transposes Directive (EU) 2019/1158 of the European Parliament and the Council of June 20, 2019, on the balance between work and private life for parents and caregivers (the “Work-Life Balance” Directive).

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