Financial support for employees affected by the armed conflict in Ukraine

The Romanian Government has enacted an emergency ordinance in order to ensure support for those employees whose individual employment agreements have been temporarily suspended in the context of the military conflict in Ukraine and/or as a result of the international sanctions applied to the Russian Federation and Belarus.

In this regard, the following employees shall receive an indemnity until December 31, 2022 (for the period during which the individual employment agreement was temporarily suspended), consisting of 75% of the basic salary corresponding to the relevant job and supported by the unemployment insurance budget, however not more than 75% of the average gross wage, as established by the relevant national laws (the average gross wage in Romania is currently RON 6,095 – approximately EUR 1,232):

• employees of employers directly or indirectly affected by the impossibility of conducting commercial transactions with economic operators in Ukraine, the Russian Federation, and Belarus, as a result of the effects of the armed conflict in Ukraine, which have a decrease in revenues of at least 20% reported compared to the revenues made in January 2022 or to the revenues made in the same month of 2021, compared to the month for which the indemnity is requested; the above-mentioned economic operators are natural persons or legal entities who carry out economic activities in compliance with the laws of Ukraine, the Russian Federation, and Belarus, who manufacture, import, export, store, transport or market products or parts or provide services; the employers who are indirectly affected, as mentioned above, are Romanian employers who have contractual relations with other Romanian employers who are directly affected by the impossibility of conducting commercial transactions with economic operators in Ukraine, the Russian Federation and Belarus, as a result of the effects generated by the armed conflict in Ukraine;
• employees of employers subject to international sanctions who have imposed restrictive measures in relation to actions that undermine or threaten the territorial integrity, sovereignty and independence of Ukraine and whose funds or economic resources are blocked by an order issued by the President of the National Tax Administration Agency.

The relevant indemnity is calculated and granted proportionally to the number of days in which the activity was temporarily interrupted or reduced, and the same is subject to the relevant taxes and social contribution deductions.