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July 1, 2022

President Iohannis signs into law bill disconnecting award of family allowance from local tax pay

President Klaus Iohannis signed on Monday the decree promulgating the Law approving Government Emergency Ordinance No. 26/2016 amending Family Allowance Law No. 277/2010, which provides that the award of the family allowance to low-income families with dependent children is no longer conditioned on the payment of local taxes and fees for the family property.

The Ordinance was adopted by the government in June 2016 and cleared Parliament this year.

According to the normative act, payments shall be resumed ex officio to families who had these benefits halted, including for the period during which the family allowance was suspended.

The government argued that the family allowance is a form of support to low-income families who rear children under the age of 18 and which is granted under Law No. 277/2010. These allowances are granted to families with a monthly income per member of less than 530 lei and is calculated according to the number of children and the income per family member.

Under legislative amendments adopted by Parliament in 2015 and 2016, the provision conditioning the payment of social benefits granted under the Law on the minimum guaranteed income and the child benefit on the payment of local taxes and fees was scrapped.

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