Romanian families who have their third child may receive RON 15,000 (some EUR 3,300) from the state for their contribution to the nation.

This measure has been included in a draft law that Romanian MP Iacob Puscas has submitted to the Senate, according to local Mediafax. This bill aims to help stop the demographic decline in Romania.

The draft law also provides that young Romanians who get married before 35 would also get RON 15,000 from the state. However, should they divorce in the first five years after marriage, they would have to give the money back. Each of the two spouses would have 90 days to give back 50% of the amount.

Moreover, after marriage, the young people would be exempted from the income tax on salaries, according to the draft bill.

The legislative proposal also includes other measures. For example, the big families (made of husband, wife, and at least three children) will benefit from an additional monthly allowance, per family, which will amount to 50% of the gross minimum wage per economy. To qualify for this allowance, the family has to meet several conditions: all children to be under 18, to attend the compulsory classes in the state education system, all family members to have residence in Romania, the parents to live with the children, and at least one of the parents to prove that he has an income for which he pays contributions to the state.

The members of big families would also be exempted from paying income tax on salaries. Moreover, the families who make income from other activities would only pay half of the income tax owed to the state.

The bill also includes a VAT of maximum 5% for hygiene and care products for children aged up to 6 years.

The MP proposes the Ministry of Labor, Family and Social Protection to provide the funds needed to grant these rights.

Romania has seen an accelerated demographic decline in recent years. The country had a resident population of 19.76 million inhabitants at January 1, 2016, according to a statement from the National Statistics Institute (INS). The number is 110,700 lower than the one reported at the beginning of 2015.

Irina Popescu, irina.popescu@romania-insider.com