Sick leave in Romania - Legal aspects, types and procedure for obtaining it

Employees and employers are involved together with the Romanian state authorities in the correct and proper functioning of this procedure and, for this reason, all parties involved should be aware of the way sick leave is granted, as well as other legal provisions, which facilitate the procedure.

Publication date: 8 August 2023

In the lines below you will discover helpful information about sick leave, when and how it is paid, and after how long. You will also find out what the Romanian legislation stipulates regarding the duration, calculation and payment method, as well as the procedure for obtaining sick leave.

Contents:

1. Sick leave - legislation, duration and method of calculation

1.1. What is sick leave under the Labour Code?

1.2. Who pays for sick leave and how and for how long?

1.3. How sick leave is calculated

2. Types of sick leave and conditions for granting it

2.1. Sick leave for temporary incapacity for work

2.2. Sick leave for the prevention of illness and recovery of working capacity

2.3. Maternity sick leave

2.4. Sick leave to care for a sick child

3. How is sick leave granted?

3.1. Who is eligible for sick leave?

3.2. How to get sick leave?

1. Sick leave - legislation, duration and method of calculation

Every employee needs time off during their working life from their normal activities, examples of which are weekends or holidays. Unfortunately, in some cases, a health problem may arise which prevents normal work from being carried out, and for this reason, countries around the world have introduced the possibility of receiving temporary leave from work to deal with the undesirable situation. This leave is not voluntary and, for this reason, the employer and the Romanian State grant partial or total payment of the salary.  

1.1. What is sick leave under the Labour Code?

Sick leave is a period of temporary absence from work granted to employees who fall ill or suffer a medical condition for a certain period. The purpose of this is to allow the employee to fully recover to return to work.

Because of the complexity of medical conditions and the different interventions that are made for each illness, the issue of sick leave is regulated by several pieces of legislation, such as:

• Labour Code;
• Government Emergency Ordinance No 158 /2005;
• Law number 399 / 2006;
• Order of the Minister of Health number 15/2018;
• Order of the Minister of Health number 1398 / 729 / 2021.

These laws and regulations contain provisions specifying who is entitled to take sick leave, what conditions it must meet, how to calculate the amount the employee receives monthly depending on the illness he/she has, who pays the money and how long this period of health care lasts.

1.2. Who pays for sick leave and how and for how long?

Many employees and employers are not familiar with the details of the legislation on the granting of this type of leave and, for this reason, misunderstandings arise when such a need arises. The most common misunderstandings relate to the source of funds for the payment of monthly salary during the leave period and the maximum duration that can be granted.

The answer to the first question is provided by the legislative documents, which state that the funds come from both the employer and the Romanian state. Thus, the employer is obliged to pay allowances to the employee for the first five days of leave. If the period of health care is longer than five days, the rest of the money comes from the state through the FNUASS (National Single Health Insurance Fund).

A special provision relates to certain categories of illness for which the allowance is paid in full from this fund, namely those for maternity and maternity risk leave, infectious diseases or care of a sick child.

The duration of sick leave can vary from one to a maximum of 183 paid days per calendar year. However, in certain circumstances, it is possible for the duration of leave to be extended up to a year and a half or even until the health problem is resolved in the case of tuberculosis.

1.3. How sick leave is calculated

The calculation of the sick leave allowance is based on the idea that the basis taken into account is the average monthly income earned during the last six months of the twelve months considered as a contribution period, with the provision that this amount may not exceed the value of twelve gross monthly minimum wages calculated for the country.

Basically, the following formula applies to calculate the salary of an employee on sick leave. The basic salary for the last six months is divided by the number of days of insurance during that period, giving the average daily pay. This average is multiplied by the percentage of the grant and by the number of days of leave, depending on the medical condition (75, 80, 85 or 100 per cent).

The percentage of the grant is determined according to the diagnosis, based on the codes that are passed by the doctor. These codes are noted from 01 to 15, each of which is paid a percentage. For example, for common illnesses, code 01 states that 75 per cent of the income earned is given, for infectious and contagious diseases, which are listed under group 05, and for medical and surgical emergencies in group 06, 100 per cent is given, as are tuberculosis (12), neoplasia (14) and AIDS (14), and for accidents at work and occupational diseases (codes 03 and 04), between 80 and 100 per cent of the income earned.

As can be seen, the calculation of sick leave benefits is quite complicated and errors can often occur, affecting both the employee and the employer. This can be the case for large companies with hundreds and thousands of employees who frequently request sick leave and who have to carry out quite complex bureaucratic work. One solution to this problem is to turn to accounting firms and outsourced services that have employees specialised in HR and payroll and that offer other administrative services useful for dealing with such situations quickly and correctly.

2. Types of sick leave and conditions for granting it

Romanian legislation provides for the possibility for employees to obtain different types of sick leave, each with specific conditions for granting it. The difference depends on the illness involved, the method of payment and the period of entitlement.

2.1. Sick leave for temporary incapacity for work

This sick leave is the most common in practice. It is granted by taking into account 75 percent of average gross monthly earnings or 100 percent in cases provided for by law. Payment is made by the employer for the first five days and by social insurance for the rest of the period.

The duration of the benefit is a maximum of 183 days in a year. For the first 90 days, leave may be granted by the family doctor and then by the specialist doctor, and for extensions beyond this limit, the approval of the social insurance expert doctor is required. If it is necessary to exceed 183 days, a special procedure must be followed to obtain an additional 90 days of sick leave.

2.2. Sick leave for the prevention of illness and recovery of working capacity

This form of sick leave is intended for employees who have suffered various accidents at work or have become occupationally ill. In this case, employees can get either a reduction in working time by a quarter of the normal duration or up to 183 days of leave with pay of between 80 and 100 per cent, depending on the situation.

There is also a provision for the possibility of various spa treatments, recommended by the specialist doctor through an individual recovery programme, approved by the social insurance expert, for a period of 15 to 21 days.

2.3. Maternity sick leave

Maternity sick leave can be granted for a duration of 126 calendar days, both prenatal and postnatal, i.e. 63 days before the birth of the child and 63 days leave for the period of childbirth after the birth. On the recommendation of the specialist, it is possible to offset the two periods by reducing the length of the maternity leave and increasing the prenatal leave (provided that the maternity leave is not shorter than 24 calendar days).

The maternity allowance is paid at 85% of the gross monthly income of the previous six months and is fully covered by the National Health Insurance Fund.

2.4. Sick leave to care for a sick child

Insured persons in Romania are entitled to receive paid leave days to care for sick children. Thus, for ordinary illnesses, leave is received only until the sick child reaches the age of 7, and for serious illnesses or disabled patients until the age of 18. Leave may be taken by either parent, provided they have at least six months' insurance in the last calendar year. The amount of the allowance in this case is 85% of the average gross earnings over the last six months.

3. How is sick leave granted?

In order to obtain sick leave, employees must follow a procedure that is laid down in the legislation, otherwise it will be refused. Not all Romanians can obtain such a benefit and not in all circumstances.

3.1. Who is eligible for sick leave?

Romanian legislation provides as a basic rule the possibility of receiving sick leave for employees who pay health insurance and who have had a minimum period of contribution of at least six months in the last calendar year. More specifically, Government Emergency Ordinance No 158/2005 specifies which categories of persons are entitled:

• Persons insured under the social health insurance system who are domiciled or reside in Romania (this includes the unemployed);
• Persons who have a social insurance contract for holidays and allowances;
• Administrators or managers working on a contract basis;
• Persons authorised for self-employed activities;
• Members of a family association.

3.2. How to get sick leave?

If an employee notices a problem that entitles him/her to take sick leave (medical problem, illness, suffering of minor children), he/she should contact the doctor who is the only one entitled to determine whether or not a period of leave from work is needed to deal with these problems.

The doctors who are allowed to issue a sick leave certificate are:

• Family doctor;
• Primary care physician;
• Specialist doctor;
• Doctors who have an agreement with a health insurance company.

The employer must also be involved in this process and must be notified immediately, as he will issue a certificate showing the payment of social security contributions and the number of days of leave taken in the last 12 to 24 months. On the basis of the specialist's diagnosis and the certificate, the doctor will complete the leave certificate which must be sent to the employer.

Employees and employers need to know other useful information about sick leave, which provides clear answers to the most frequently asked questions:

• Sick leave can also be taken during the notice period (the latter is suspended);
• Sick leave is counted towards seniority, having no effect on it;
• Sick leave is subject to a 10 percent tax on income, except for leave granted under codes 08 and 09, when no deductions are made;
• Sick leave does not affect the number of days of annual leave to which the employee is entitled;
• The employment contract is suspended during sick leave;
• When should sick leave be reported? It must be reported to the employer no later than the 5th day of the following month for which the leave was granted;
• What happens if the employer doesn't pay sick leave? If the employer doesn't pay sick leave, they can be fined, as this action is considered an offense;
• When is sick leave not paid? Sick leave is not paid when the person doesn't meet the conditions stipulated by law.

In conclusion, having a comprehensive understanding of the details regarding sick leave is essential for both employees and employers, in order to appropriately and promptly address unforeseen situations of this nature.

*This material has been prepared for informational purposes only and does not serve as a substitute for tax, legal, or accounting advice. We recommend consulting with tax, legal, and accounting specialist teams before making any decisions related to the topics mentioned in this article.