Romania’s Government disagrees with the draft project providing that local companies that hire young people aged 16-35, who haven’t previously had a job, receive benefits.

The bill called “The First Job” was introduced one year ago. It states that companies will get for each such employee an amount that is equal with the minimum gross salary.

These companies will be exempted from paying social insurance contributions (CAS) for those employees, for 18 months. The firm needs to keep the employee three years and have no debts to the state budget.

The Government argued that these measures would simply overlap with other benefits, reports local Profit.ro. The facilities would also increase the general budget deficit, and would lead to Romania’s failing to respect its commitment to the EU.

The Government has estimated that if 15,000 young people are hired with a minimum gross salary of RON 1,250 (EUR 277) under the bill’s conditions, the additional impact on the budget expenses would amount to almost EUR 75 million.

The opinion expressed by the Government has only an advisory role. The final decision will be made by the Chamber of Deputies.

editor@romania-insider.com