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April 12, 2021

LabourMin Vasilescu: Nobody contributes to child raising allowance, we cap that, we could’ve stopped paying it

Nobody in Romania contributes to the child raising allowance, on Tuesday said the Labour Minister Lia-Olguta Vasilescu, adding that the state opted for capping this benefit to EUR 1,800, although it could have stopped paying it at all.

“Nobody in Romania is contributing to the child raising allowance. It is a procedure through which the state supports the families to raise their children when not working. Therefore, we have no contributiveness principle to talk about here, and the ceiling is maximum in the European Union. We could’ve capped it downwards. We could’ve do like very developed countries in the EU do, to pay it at all or give only EUR 100. And yet we didn’t. We capped it to EUR 1,800. It’s enough for Romania from our viewpoint, as long as it is the sum given in Germany, too and it is the maximum in the EU. Nowhere in the world is there the possibility to stretch with this sum in terms of revenues,”the Labour minister told the Labour Committee sitting at the Senate, where talking was to pass the ordinance on the capping of the child raising allowance.

The minister mentioned that the number of the ones affected by this capping is 1,000 and that the Romanian state was at some point paying rd EUR 35,000 per month.

“We didn’t do this OUG because it would’ve imbalanced the budget, we did it to correct a law which the way it was, it gave birth to several kinds of inequalities. (…). We were even paying allowances worth EUR 35,000 per month and this because, as it is calculated to the revenues, all kinds of excesses and disparities could have been done,” Lia-Olguta Vasilescu said.

The Senate’s Labour Committee on Tuesday gave positive opinion to the bill on approving the Government Emergency Ordinance (OUG) 55/2017 for the amendment and completion of the OUG 111/2010 on the child raising leave and monthly allowance.

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