Preliminary assessment of the second payment request of Romania

the registration of domestic activities by 1 January 2024. Thus, the electronic platform set up in line with this Article 13(1) allows for the operationalisation of the labour voucher system and for the application of the provisions of the law on labour vouchers in its entirety, starting from that date.

Milestone #387 is part of reform 4 which is directly connected to investment 3 of the component. The reform aims at establishing a system of payment and registration of persons carrying out domestic work on the basis of vouchers. The objective of investment 3 is to operationalise the labour voucher system by ensuring simple and digital access for all users. The legislation enters into force with the operationalization of the electronic platform for the voucher system (milestone #397) which is foreseen in Q4/2023.

Moreover, in Component 13 on Social reforms of the RRP submitted by Romania, under Investment 3 – “Operationalisation of the introduction of work cards for domestic work”, in pages 52-53, it is mentioned that: “In 2022, the legislative framework and the implementing rules governing the activity of the domestic worker, remunerated in employment vouchers, will be laid down. In order to operationalise the new legislative provision, it is necessary to develop and implement a platform, to be used and managed by ANOFM (the Romanian Public Employment Service), through the territorial employment agencies, as well as the purchase of labour vouchers. It is also necessary to ensure that the staff who will use the platform are properly trained. In 2023-Q4, the platform will become operational and the provisions of the legislative act can be implemented.” (source: https://mfe.gov.ro/pnrr/, Component 13)

Therefore, taking into consideration the interdependent relationship between the law establishing the voucher system (milestone #387) and the platform operationalizing it (milestone #397), as well as the fact that the original purpose envisaged by the RRP submitted by Romania was to have the two milestones connected, the objective of the reform that this milestone represents is to operationalise the platform in 2024. On this basis, it is considered that this constitutive element of the milestone is satisfactorily fulfilled.

The establishment of the labour voucher system is prescribed by Article 1 of Law No. 111/2022, which provides that the law regulates the system through which natural persons can perform domestic activities in exchange for a remuneration paid through labour vouchers for domestic work. This Law No. 111/2022 is the first legal framework regulating work performed by domestic providers outside commercial activities and not based on labour contracts. Article 2(1) letter a) of the Law specifies that domestic work is not a commercial activity, and Article 3(4) states that the working agreement between the provider and the beneficiary does not have a written form. Article 9(1) and (4) establish that the provider must pay the taxes and social insurance contributions for the income gained from domestic work, which are deducted from the value of the labour vouchers. Thus, the employment of domestic workers performing non-commercial activities is formalised, boosting the formal employment of this type of workers.

2) This voucher system should create incentives to create formal employment for domestic workers who are currently recorded as unemployed or inactive

The voucher system creates incentives for the formal employment of domestic workers. In particular, Article 4(1) letter e), Article 9(5) and Article 9(7) of Law No. 111/2022 establish the right of domestic workers to be insured in the health insurance system and in the public pensions system. Furthermore, Article 14(1) of this Law provides that the previously unemployed or inactive persons who gain income as domestic workers are not considered income earners. Therefore, as Article 14 (2) of the Law provides, the income obtained through domestic work vouchers shall not be taken into account when establishing and granting the right to the guaranteed minimum income. This

52