What is unemployment benefit?

Unemployment benefit is a partial income’s insured compensation as a result of job loss, or a partial income’s insured compensation of graduates of educational institutions who could not find work , provided by the Country Employment Agencies (CEA).

How to claim the unemployment benefit?

The persons applying to CEA must meet the following conditions:

a) Have a contribution period of at least 12 months in the last 24 months prior to the application date;

b) Have income lower than the value of the reference social indicator (The amount, for now, is 500 lei);

c) Do not meet the retirement requirements;

d) Are registered to the employment agencies in their residential area if they have earned income in that locality.

For the persons employed with a temporary work contract, the contribution period depends on the duration of each mission or the time in between the missions, respectively on the time when the persons are at the disposal of the temporary work agent, between missions.

How much time do you need to receive unemployment benefit?

The unemployment benefit is granted starting with the date of registration of the application. The application is submitted within 10 days from the termination of the employment relationship or from the date when you no longer earn income and you become eligible to receive unemployment benefit. The application can also be registered after the expiration of the term of 10 days, but not later than 12 months from the date when you are eligible for the unemployment allowance.

Who can benefit from unemployment benefits?

People who are in one of the following situations can benefit of the unemployment benefits:

a) If the employment or service relations have stopped for reasons not attributable to them, including the cessation of temporary work missions by resigning; The articles of the Labor Code corresponding to the unemployment indemnities are: Art. 61. paragraph (1) – individual dismissal, Art. 68 (collective dismissal), Art. 31 paragraph (3) – during or at the end of the prewar period, Art. 56 paragraph 1, letter (i) at the end of the probationary period and the lack of agreement of the extension employer, Art. 95 paragraph (4) giving up the user to the temporary work mission.

b) Cancellation of the election or if the resumption of activity is no longer possible due to the permanent cessation of the employer’s activity.

c) The employment relationship as a cooperation member is ceased for reasons not attributable to them;

d) They have concluded an unemployment insurance contract and do not achieve incomes or achieves, from activities authorized according to the law, incomes lower than the value of the reference social indicator, in force;

e) Employment activity is canceled because of the retirement which is the result of the disability of a worker to properly perform

f) Employment or service relations have ceased for reasons not attributable to them, during the period of their suspension, according to the law;

g) The mandate or managerial contract has ceased;

h) Activities, from which person gained income, are ceased based on the legal relationship.

How much is the unemployment benefit?

During the unemployment period, the beneficiaries receive a monthly unemployment allowance, the amount of which is established according to the contribution period of the applicant, as follows:

1. a) 75% of the value of the reference social indicator in force at the date of its establishment, for persons with a contribution period of at least one year;
2. b) 75% of the value of the reference social indicator in force at the date of its establishment, to which is added a sum calculated by applying a percentage quota differentiated according to the contribution period, as follows:

– 3% for persons with a contribution period of at least 3 years;

– 5% for persons with a contribution period of at least 5 years;

– 7% for persons with a contribution period of at least 10 years;

– 10% for persons with a contribution period of at least 20 years.

The graduates of the educational institutions, at least 16 years old, who, within a period of 60 days from graduation, have not been able to fit in the work according to professional training, as well as the graduates of the special schools for persons with disabilities aged at least 16 years, that failed to fit in the work according to the professional training: they receive unemployment benefit, upon request, for a period of 6 months and it is a fixed, monthly amount representing 50% of the value of the reference social indicator, in force at the date of its establishment. Graduates of educational institutions may receive unemployment benefits only once, for each form of education graduated.

How long do you receive unemployment benefit?

The unemployment allowance is granted to the unemployed according to the contribution period, as follows:

a) 6 months, for persons with a contribution period of at least one year;

b) 9 months, for persons with a contribution period of at least 5 years;

c) 12 months, for persons with a contribution period of more than 10 years.

What benefits do employees have if they find work during the unemployment period?

1. While receiving the unemployment benefit, a person who will be employed, she/he will continue receiving a benefit (30%) from the unemployment insurance budget until the end of the unemployment allowance period , provided that he has not been in a working relationship with the current employer in the last 2 years.
2. Graduates of educational institutions and graduates of special schools, at least 16 years old, who, within 60 days of graduation, register with the employment agencies and are employed full time for more than 12 months, benefits from the unemployment insurance budget, of an insertion premium equal to 3 times the value of the reference social indicator in force at the date of employment paid 50% on employment and 50% after 12 months from the date of employment.
3. Unemployed people who find work more than 15 km from home, from CEA receive a premium calculated as 0.5 lei/km without exceeding the amount of 55 lei / day, and unemployed people who find work at a distance more than 50 km from the house, which involves relocating them, from CEA receive an installation premium of at least 12.500 lei paid 50% at installation and 50% after 12 months from the date of employment.

What benefits do employers have if they hire unemployed beneficiaries?

1. Employers who organize training programs for their own employees carried out by providers of professional training services will get 50% of training expenses back from the unemployment insurance budget. The training must include a maximum of 20% of the staff and the employer must continue working with those staff members for at least 12 months, otherwise, it is required to repay, in full, to the employment agencies the subsidy granted for each person, plus interest calculated daily.
2. Employers who employ unemployed people over the age of 45 with an individual employment contract for an indefinite period, receive, a grant from CEA for a year. The employer must maintain the employment relationship for at least 18 months, otherwise they will refund the amount collected plus interest calculated to date.

3. Employers hiring graduates of educational institutions for an indefinite duration, receive monthly benefits from CEA for 12 months. The benefit for each graduate is the amount of 2,250 lei, with the obligation to maintain a working relationship with graduates for at least 18 months.

We are looking forward to your requests regarding the subject.