1. Introduction
Starting August 1, 2025, under Law no. 141/2025, child-raising leave allowances in Romania will be subject to the Health Insurance Contribution (CASS, 10%). This fiscal change directly affects the net income of parents benefiting from this type of leave and highlights the importance of clear and accurate information.
This article explains in detail how the new rule applies, who is affected, what the exceptions are, and what you should consider if you're planning to take maternity leave or child-raising leave. It also includes a brief summary of relevant rules concerning prenatal and postnatal leave, for a clearer overview.
2. What Is CASS and Why It Applies from August 2025
CASS is Romania’s individual health insurance contribution, required from anyone earning taxable income. Until now, parents on child-raising leave were exempt from paying this contribution.
As of August 1, 2025, according to Law 141/2025, child-raising leave allowances are no longer exempt from CASS. This means:
- The state will withhold 10% of the gross monthly allowance;
- The deduction will be made by the institutions responsible for payment (AJPIS);
- Mothers and fathers on child-raising leave will receive about 10% less each month.
📌 Important: This change does not apply to maternity leave allowances (prenatal/postnatal). These are considered medical leave allowances and remain exempt from CASS.
3. What Specifically Changes for Child-Raising Leave
According to OUG 111/2010, child-raising leave is granted:
- Up to 2 years for healthy children;
- Up to 3 years for children with disabilities.
The monthly allowance is 85% of the average net income from the last 12 months of the previous 2 years. It has minimum and maximum thresholds:
- Minimum: 1,651 RON
- Maximum: 8,500 RON (as of 2025, aligned with the minimum gross salary cap)
From August 1, 2025:
- 10% CASS will be withheld from the gross allowance;
- No income tax is introduced (remains at 0%), but the net amount drops significantly;
- Applies regardless of whether you're an employee, freelancer (PFA), or contractor if you receive the standard allowance.
Example:
- Average income: 4,000 RON
- Gross allowance: 85% = 3,400 RON
- CASS (10%): 340 RON
- Net received monthly: 3,060 RON
4. What Remains Unchanged: Maternity Leave (Prenatal and Postnatal)
According to OUG 158/2005, employed mothers in Romania are entitled to 126 calendar days of maternity leave, split as:
- 63 days prenatal leave
- 63 days postnatal leave
These can be redistributed as long as at least 42 days are taken after birth.
Maternity Allowance:
- 85% of the average gross salary from the last 6 months before the leave;
- Not subject to CASS or income tax;
- Paid by the employer and reimbursed by the Health Insurance House.
To be eligible, the mother must have at least 6 months of contributions in the last 12 months.
5. Practical Recommendations for Parents and Employers
- Financial Planning: Adjust your family budget, accounting for about 10% less in monthly income.
- Leave Strategy: Consider extending your maternity leave before switching to child-raising leave (if medically possible).
- Tax Consultation: If you have mixed income sources (salary + freelance + royalties), assess your individual fiscal impact.
- For Employers: Ensure proper HR communication and update your REGES/REVISAL records accordingly.
- Do not confuse maternity leave with child-raising leave — they are taxed differently!
6. Conclusion
Law 141/2025 brings a significant fiscal change for all future parents taking child-raising leave: for the first time, this allowance will be subject to 10% CASS starting August 2025.
✅ Key takeaway:
- Maternity leave allowance → still exempt from CASS
- Child-raising leave allowance (CCC) → taxed with 10% CASS
Proper financial preparation and clear information are essential. Growee encourages a transparent work culture and genuine support for parents.
