The parents who are on parental leave can achieve taxable incomes, in an annual limit, without the suspension of the allowance, according to the law 126/2014. The act which changes the Government Emergency Ordinance 111/2010 regarding the monthly allowance for the parental leave was published in the Official Gazette no. 700/2014 and applies from tomorrow, September 27, 2014.
The limit of the taxable incomes for the persons in parental leave is 6 ISR (currently 3000 lei), incomes earned in a calendar year, according to the law 126/2014.
Legal note (comparing the modified article from the GEO no. 111/2010 – the initial version and the current one) |
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Art. 16, paragraph 3 – GEO 111/2010 before the change |
Art. 16, paragraph 3 – GEO 111/2010 after change |
(3) The payment of the parental allowance is not suspended if the beneficiaries of it received various amounts under the law, the collective labor agreement or the individual employment contract, granted during the parental leave, other than those resulting from the effective development of activities during the leave. The provisions also apply in case of local councilors. |
(3) Notwithstanding the provisions of para. (2) letter i), the payment of the parental allowance shall not be suspended if the person is entitled to one or more of the following situations: a) receives different amounts under the law, the collective labor agreement or the individual employment contract, granted during the parental leave, other than those resulting from the effective development of activities during the leave; b) receives compensation as a local or county councilor, regardless of their level; c) obtains taxable incomes through the effective deployment of activities during the leave, no more than 6 ISR in a calendar year. |
If the incomes are above the imposed limit, the unduly received amounts will be recovered by the following formula:
The amount to be recovered = The quantum of the received monthly allowance – The monthly incentive insertion to which person is entitled |
If the parents who receive allowances as a local/county councilor, regardless of their amount and other amounts under the law, the parental allowance payments shall not be suspended.
Previously, GEO 111/2010 stipulated that the allowance of the person in the parental leave is suspended from the day following the one on which he obtains taxable incomes.
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Termination Decision for Suspension
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Request to Return from Parental Leave