Fiscal-budgetary measures, entered into force on August 1, which change the calculation method of medical leave allowances, caused a significant decrease in the number of certificates issued, contributing to the efficiency of public spending.
As part of the fiscal-budgetary reform package launched by the Government this summer, Law 141/2025 introduces the reduction of the value of allowances for medical leaves and the application of different calculation formulas, depending on the duration of the leave. The authorities justify these measures by the need to reduce the pressure on the health budget, pressure generated by the increase in the number of days of leave granted without medical justification and by the increasingly high costs of treatments.
The data communicated by the Ministry of Health at the beginning of November show that the number of medical certificates issued between July and September 2025 decreased significantly, generating important savings for the budget allocated to the payment of medical leaves, writes Agerpres.
“However, these legislative changes imply lower allowances for employees, in the case of short-term medical leaves, and generate more complicated administrative procedures for employers. After the first four months after the entry into force, we can say that the immediate effects are negative both for employees – by decreasing net income for people with temporary health problems, and for companies – by increasing administrative complexity”explains Ioana Zavastin, Payroll Director of TPA Romania.
The current fiscal measures complement the changes already introduced in 2024 regarding the payment of medical leaves. Thus, starting from January 1, 2024, the contribution to social health insurance (CASS of 10%) was introduced in the allowance calculation basis.
Later, from April 2024, the application of this CASS contribution was limited only to certain types of leave (ordinary illness, quarantine and reduction of working hours), other types of medical leave being exempt from CASS, such as those for maternity or caring for a sick child.
“Previously, these allowances were exempt from paying CASS, so the new calculation method for sick leave allowances has significantly reduced the net amounts received by employees during the period of sick leave. The decrease in net income for employees and the administrative burden for employers is accentuated by the regulations introduced in August 2025“, says Ioana Zavastin.
How the allowance is calculated starting August 1
According to the TPA Romania specialist, the main changes introduced from August 1, 2025 refer to allowances for common illness (code 01). Until this date, the allowance was fixed, representing 75% of the calculation base, regardless of duration.
As of August 1, 2025, the calculation percentage became differentiated according to the number of days of leave per episode of illness: it is 55% of the calculation base for leaves of up to 7 days, increases to 65% for those between 8 and 14 days, and returns to 75% only for leaves of more than 15 days.
The calculation basis remains the average gross income of the last six months, limited to the equivalent of 12 gross minimum wages per country.
“This formula leads to lower benefits for short-term sick leave, which may discourage abuse, but still affects the income of employees with temporary health problems.
In practice, the management of medical certificates thus becomes an increasingly burdensome bureaucratic and administrative task for employers. Although the direct costs of paying medical allowances are not higher even in the case of successive medical certificates, the legislative changes generate a series of operational challenges and additional fiscal risks for companies”says Ioana Zavastin.
Also, TPA Romania specialists have identified in practice a series of situations faced by employers. If, during an episode of illness, an initial sick leave certificate is issued, followed by one or more subsequent certificates, the number of sick leave days will be accumulated, and the percentage applied to the calculation base will be determined according to the total number of days related to the entire illness episode.
In the situation where the initial sick leave certificate is issued at the end of the month and is followed by a further certificate in the following month, the total number of sick leave days related to the same episode of illness will increase.
Thus, in the case of successive medical certificates issued for the same episode of illness, the percentage is retroactively recalculated according to the cumulative duration of the medical leave. This will lead to the increase of the percentage applied to the calculation base and, implicitly, to the recalculation of the allowance related to the original medical leave certificate.
“HR and payroll departments must implement clear internal flows for the management of medical certificates. To avoid errors, the procedures will be complex, following the identification of medical certificates, the careful record of the continuity of medical episodes, the operation of retroactive salary recalculation, the communication with employees and their transparent information to prevent dissatisfaction related to the decrease of allowances for short leaves.
In addition, the rectification of payroll and Statement 112, in the case of retroactive recalculations, may generate interest and penalties if the fiscal adjustment is made after the reporting deadline. In this context, employers face an increase in bureaucracy and the time required to manage absences and to process and calculate salaries, which can have an indirect impact on productivity within the company”concludes Ioana Zavastin.
