Social welfare
What was the Romanian unemployment rate in 2011?
Romania
In 1990, after the fall of the communist regime, the whole system was reformed. It was divided into multiple categories (healthcare, child care, adults and elderly), and the concept of generalized social welfare became reduced in scale. Families or mothers do not pay for giving birth, which is subsidized by state tax revenues. As soon as mothers give birth, they are entitled to vacation. They receive aid which amounts 75% of their net income, without a limit being set. After the age of two, children receive an allowance of approximately €9 per month up until the age of 18, although they must attend school in order to receive it. Adults are also able to apply for unemployment aid. The amount varies from case to case, but is generally comparable to the minimum wage. The unemployment aid can be granted if the payer has contributed and if they can prove they are actively seeking for a job. The unemployment aid is granted on a time-limited, individually determined basis. The unemployment rate in Romania has been relatively low in recent years and stands at around 5% in 2011. The pension system was also reformed. The current average retirement age (55 years for women and 57 years for men) will be gradually increased until 2014 to 60 years for women and 65 years for men. Pension is granted nonetheless of the contributions made during one's lifetime. It increases proportionally with the contribution a person made during their working age. Some retirees have pensions that overcome the medium salary, but a third of them live off with a pension equal to or under the minimum wage. Pension is provided by the state.