The Romanian Government has prepared a draft emergency ordinance (OUG) that provides subsidies in the amount of 75% of the gross wage to employees of companies directly or indirectly affected by the war in Ukraine, sent temporarily home by their employer. The industries at risk are those of automobile and furniture production as well as their suppliers.

The subsidy is capped to 75% of the average gross wage as estimated under the social security law in force this year.

The subsidy will be paid from the unemployment insurance budget and will be granted starting with the date of entry into force of the draft emergency ordinance and until December 31, 2022, according to the draft bill consulted by Economica.net.

Among the Romanian industries affected by the war in Ukraine are the metallurgical industry, the automotive industry, the furniture industry, industries that in turn affect the value chains horizontally and generate multiplier effects for customers and suppliers.

About 5,000 employees in the automotive sector and 1,000 employees in the furniture industry in Romania could be affected by the impact of the war in Ukraine, according to the reasoning drafted by the Government along with the emergency ordinance. 

andrei@romania-insider.com

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