Advisory Services Agreement on

Strengthening Planning and Budgeting Capacity and Supporting the Introduction of Performance Budgeting (P156889)

Output No. 5Institutional Strategic Plan 2018-2021 for the Ministry of Labor and Social Justice

July 2018

Project co-financed by the European Social Fund through the Operational Program for Administrative Capacity 2014-2020

This report has been delivered under the Advisory Services Agreement on Strengthening Planning and Budgeting Capacity and Supporting the Introduction of Performance Budgeting signed between the General Secretariat of the Government and the International Bank for Reconstruction and Development on June 8, 2016. It corresponds to Output 5 under the above-mentioned agreement.

Disclaimer

This report is a product of the International Bank for Reconstruction and Development / the World Bank. The findings, interpretation, and conclusions expressed in this paper do not necessarily reflect the views of the Executive Directors of the World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work.

This report does not necessarily represent the position of the European Union or the Romanian Government.

Copyright Statement

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For permission to photocopy or reprint any part of this work, please send a request with the complete information to either: (i) the General Secretariat of the Government (1 Victoriei Square, Bucharest, Romania); or (ii) the World Bank Group Romania (Vasile Lascăr Street, No 31, Et 6, Sector 2, Bucharest, Romania).

Contents

1. Context.......................................................................................................................................12. Mission and vision.....................................................................................................................123. Strategic objectives, programs, measures, indicators.................................................................13

Strategic objective 1: Increasing the employment rate of people aged 20-64, on an inclusive labor market, that would support competitive economic growth and lead to a reduction of in-work poverty and informal labor...............................................................................................13

Program 1.1: Employment for all..................................................................................................19Program 1.2: Passive measures for the unemployed...................................................................24Program 1.3: Working conditions.................................................................................................25Program 1.4: Insurance for work accidents and occupational diseases.......................................29

Strategic objective 2: An adequate and sustainable pension system..........................................31Program 2.1: Adequacy and equity in the pension system...........................................................36Program 2.2: Management of the pension system......................................................................38

Strategic objective 3: Reducing the number of people at risk of poverty and social exclusion in the context of creating a network of social services integrated, complex and well coordinated. 40

Program 3.1: Child protection......................................................................................................45Program 3.2: Social assistance benefits and social inspection......................................................48Program 3.3: Social services.........................................................................................................51Program 3.4: Disability rights.......................................................................................................53Program 3.5: Gender equality and fight against domestic violence.............................................55

Strategic Objective 4: Strengthening the social dialogue............................................................58Program 4.1: Preparing the anticipatory risk map........................................................................64Program 4.2: Widening the framework for social dialogue and strengthening the social dialogue institutional capacity....................................................................................................................65

Strategic objective 5: Strengthening the capacity of the Ministry of Labor and Social Justice (MMJS) to fulfill its functions for the elaboration and the implementation of the public and regulatory policies in its field of activity.....................................................................................68

Program 5.1: Strengthening the administrative capacity of the institutions in the labour and social justice sector.......................................................................................................................73Program 5.2: Information and Communication Technology (ICT) in the field of labor and social protection; ICT governance and efficient cybersecurity; successful human resources policies for ICT professionals; maintenance, development and upgrading of ICT systems.............................75

4. Framework for ISP implementation, monitoring and evaluation................................................835. Financial Resources...................................................................................................................86Annex 1a: Objectives and budgetary programs for the period 2018-2021.......................................88Annex 1b: Budget on programs and measures for the period 2018-2021........................................90Annex 2: Institutional Strategic Plan (summary table)..................................................................103Annex 3: Programs and measures (summary table).....................................................................112Annex 4: Institutional Profile.......................................................................................................137

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List of Acronyms

ANC National Authority for Professional Qualifications (Autoritatea Națională pentru Calificări)

ANES National Agency for Equality of Chances between Women and Men (Agenția Națională pentru Egalitate de Șanse între Femei și Bărbați)

ANOFM National Employment Agency (Agenția Națională pentru Ocuparea Forței de Muncă)

ANPD National Authority for People with Disabilities (Autoritatea Naţională pentru Persoanele cu Dizabilităţi)

ANPDCA National Authority for the Protection of the Rights of the Child and Adoption (Autoritatea Naţională pentru Protecţia Drepturilor Copilului şi Adopţie)

ANPIS National Agency for Payments and Social Inspection (Agenția Națională pentru Plăți și Inspecție Socială)

ASF Financial Supervisory (Authority Autoritatea de supraveghere financiară)

BAS Unemployment Insurance Budget (Bugetul Asigurărilor pentru Șomaj)

BASS State Social Insurance Budget (Bugetul Asigurărilor Sociale de Stat)

CE European Commission (Comisia Europeană)

CNP National Commission for Prognosis (Comisia Naționala de Prognoză)

CNPP National House of Public Pensions (Casa Națională de Pensii Publice)

DGASPC County Directorates of Social Assistance and Child Protection (Direcția Generală de Asistență Socială și Protecția Copilului)

EUROSTAT Statistical Office of the European Union (Oficul European de Statistică)

EESSI Electronic Exchange of Social Security Information

FESI/ESIFEuropean Structural and Investment Funds (Fonduri Europene Sructurale și de Investiții)

G20Group of Twenty – Group of the world’s 20 most developed countries (Grupul celor 20 de state cele mai dezvoltate ale lumii)

IM Labor Inspection (Inspecția Muncii)

INSSEE National Institute of Statistics (Institutul Național de Statistică)

MEN Ministry of National Education (Ministerul Educației Naționale)

MCPDSMinistry of Public Consultation and Social Dialogue (Ministerul Consultării Publice și Dialogului Social)

MMSJ/MLSJ Ministry of Labor and Social Justice (Ministerul Muncii și Justiției Sociale)

MS Ministry of Health (Ministerul Sănătății)

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OIM/ILO International Labor Organization (Organizația Internațională a Muncii)

ONU/UN United Nations (Organizația Națiunilor Unite)

PG Governing Program (Program de guvernare)

POCU/HCOP Human Capital Operational Program (Program Operațional Capital Uman)

POR/ROP Regional Operational Program (Program Operational Regional)

ISP Institutional Strategic Plan

SPAS Public Social Assistance Services (Serviciu Public de Asistență Socială)

SSM/SSW Safety and Security at Work (Sănătate și securitate în muncă)

UE/EU European Union (Uniunea Europeană)

VMI/MII Venitul Minim de Inserție (Minimum Insertion Income)

VMG/MGI Venitul Minim Garantat (Minimum Guaranteed Income)

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List of Figures

Figure 1. Structure of MMJS employees, including the institutions in subordination / under its authority, and the dignitaries.................................................................................................................9

Figure 2. Employment rate and share of employees (%, 20-64 years).................................................13

Figure 3. In-work poverty (% of employed persons at poverty risk, 18-64 years)................................14

Figure 4. Current and projected levels of the minimum wage.............................................................15

Figure 5. Current and projected levels of the ratio between the gross wage in the public and private sectors..................................................................................................................................................16

Figure 6. Poverty rate among the elderly (over 65 y)...........................................................................32

Figure 7. Rate of severe material deprivation......................................................................................32

Figure 8. The expected evolution of the pension system in Romania..................................................34

Figure 9. Population at risk of poverty and social exclusion (% )..........................................................40

Figure 10. At-risk-of-poverty or social exclusion rate by degree of urbanisation (%)...........................41

Figure 11. Other poverty indicators, 2010-2017 (%)............................................................................41

Figure 12. At-risk-of-poverty or social exclusion rate by broad age groups and gender (%, 2016).......42

Figure 13. Unionization rate in Romania (2002-2013)..........................................................................61

Figure 14. Unionization rates in selected EU countries........................................................................61

Figure 15. Monitoring cycle for MMJS ISP 2017-2020.........................................................................84

List of Tables

Table 1. Broad groups of citizens targeted by MMJS..............................................................................1

Table 2. Strengths and weaknesses of the MMJS and institutions in subordination of / coordinated by / under the authority of MMJS..........................................................................................................9

Table 3. Financing of the programs from the Strategic Objective 1.....................................................16

Table 4. Financing of the programs from the Strategic Objective 2.....................................................34

Table 5. Financing of the programs from the Strategic Objective 3.....................................................42

Table 6. Number of collective labor agreements and additional acts concluded at unit level.............60

Table 7. Labor disputes and employee participation............................................................................62

Table 8. Funding of programs under the Strategic Objective 4............................................................62

Table 9. Financing of the programs from the Strategic Objective 5.....................................................73

Table 10. Life events under the responsibility of MMJS and related sophistication stages..................76

Table 11. Timeline for the Specific Objective 5.2.1...............................................................................78

Table 12. Timeline for the Specific Objective 5.2.2...............................................................................80

Table 13. Financial resources for operationalizing the 2018-21 ISP (thousand RON)...........................86

Table 14. Budgetary allocations for each Strategic Objective (2018-2021)..........................................87

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List of Boxes

Box 1. The organizational structure of the Ministry of Labor and Social Justice.....................................7

Box 2. List of normative acts regarding the non-contributory reparation rights and the service pensions (paid from the state budget).................................................................................................38

List of Diagrams

Diagram 1. Functional architecture of IMS at the level of MMJS and the institutions subordinated to / under the authority of MMJS...............................................................................................................77

Diagram 2. Current interoperability, with one-on-one, spaghetti-type interactions............................77

Diagram 3. The future interoperability to be implemented in the medium term through a gradual approach..............................................................................................................................................77

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Acknowledgements

This report was drafted by a team consisting of Cătălin Păuna (TTL, Senior Economist), Geomina Turlea, Mihai Vîlnoiu and Costel Tudor (experts of the World Bank). The report was given careful comments by Mr. Sandor Karacsony (The World Bank) and Mr. Gord Evans (Evans Consulting). Mr. Lucian Novak (National Commission for Prognosis), Mrs. Andrea Cambir (National Institute for Statistics) and Mr. Vlad Grigoraș (the World Bank) have provided support on data and forecasts.

The team would like to thank the staff at the Secretariat General of the Government (SGG) for the support and excellent collaboration provided throughout the elaboration of this Note, in particular to Secretary of State Oana-Elena Pintilei, and General Director Dragoș Negoiță, as well to the counselor Radu Iacob and the project team, who provided useful recommendations and achieved a proper project management.

At the same time, the team would like to thank the Minister of Labor and Social Justice for the excellent cooperation, especially Deputy Secretary-General Mrs. Daniela Morosanu and Mr. Ion Liviu Stochiţa, Public Manager with the Unit for Public Policies, as well as to the members of the thematic Working Groups.

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1. Context

1.1. Conceptual delimitation of the Labor and Social Justice sector and the broad groups of citizens served by policies promoted by the corresponding Ministry and the institutions in its subordination, under authority and in coordination

In Romania, the Labor and Social Justice Sector covers three associated fields of social policy, namely labor (occupation and mobility, professional training, occupational health and safety at work), family (child protection and family policies, social inclusion) and social protection (pensions and other special rights, social assistance, social inclusion, protection of the elderly and of people with disabilities), social justice and social dialogue.

Table 1. Broad groups of citizens targeted by MMJS

2017 Number of persons, of which % at risk of poverty or social exclusion

Employed persons (15-64 y)8 363 00029% (18-64 y)

Unemployed 449 000 – unemployed according to ILO 67.6% (EUROSTAT estimate)374 650 – unemployed registered at ANOFM1

Young NEETs (15-24 y) 323 000

Women (over 15 y) 6 469 60834.4% (18-64 y)

Elderly (over 55 y)2 085 75437.9%

People at risk of poverty or social exclusion 6 999 000 (EUROSTAT estimate)

Disabled797 1042 (31.12.2017)39.4%3 (EUROSTAT estimate)

Children 3 057 024 40.3%

Data source: EUROSTAT

1 Source: ANOFM, Report of Activity 2017.2 Source: ANPD, Statistical Bulletin, December 2017.3 Source: EUROSTAT – given the differences in definition and methodology, in relation to the numerical reporting of people with disabilities above, the risk of poverty or social exclusion is only an estimate.

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1.2. Main internal and external trends in the Labor and Social Justice Sector

In the latest report on global employment and social trends,4 the International Labor Organization (ILO) discusses the inter-dependency between the global growth on the one hand and the evolution of the labor market and the social issues on the other and shows the likely future trends. The global economy had a more pronounced growth in 2017 than in previous years, which will remain stable, but fairly low (below 4%). Worldwide, the number of unemployed will increase but due to the simultaneous increase in the rate of unemployment, the unemployment rate is set to fall in 2018 for the first time in the last three years and it is projected to remain constant in 2019. Worsening working conditions is a present trend in most regions of the world. The forecasted growth in the global services sector is expected to put pressure on job quality, especially on those with low skills. There is still gender discrimination, with great variations in importance and intensity between different regions of the world.

In Europe, reducing unemployment among the young and long-term unemployment, as well as adaptable competencies represent priorities on the Juncker Commission Agenda. The European Commission is focusing its current efforts on intergenerational equity and solidarity. 5 In 2017 too economic growth (albeit moderate) has been accompanied by significant employment growth and the rate of activity has increased, so that the Europe 2020 employment target is now achievable at this point. Unemployment remains a problem in Europe, although the situation of young people on the labor market has improved. The EC’s Annual Growth Survey (2018)6 recommends all member states to continue their efforts related to stimulating the three elements of the vicious circle of economic politics – investment, structural reforms and responsible budget policies. On 17 November 2017, the European Parliament, the Council and the European Commission proclaimed the European Social Rights Pillar. The pillar lays down 20 principles and rights that citizens should benefit in the EU and which would guarantee the successful conduct of a renewed process of convergence towards better working and living conditions.

In its latest Annual Report on the Labor Market and Wage Developments in Europe (2017), 7 the European Commission (EC) maintains the view expressed in the previous report according to which, despite the accelerated positive evolution on the markets of member countries of the European Union (EU) after 2013 and despite a maintained economic growth thereafter, it is necessary to continue the implementation of measures to support the effective absorption of the unemployed, especially measures to prevent structural and long-term unemployment, such as a more comprehensive reform of markets, taxation and social welfare systems, but also specific measures such as professional training and supporting the creation of jobs

As far as Romania is concerned, 2017 brought a change in the paradox observed in previous years in terms of significant economic growth, accompanied by a stagnating level of employment. In 2017, Romania had the second highest GDP growth rate in the EU (almost 7%) and the highest post-crisis value. This performance is stimulated by rising private consumption, boosted by wage increases in the public and private sectors and by indirect tax cuts. The Country Report issued by EC (2018)8 defines these developments as cyclical recovery and forecasts a reduction in this rate of growth in 2018. This

4 http://www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/---publ/documents/publication/wcms_443480.pdf5 http://ec.europa.eu/social/main.jsp?catId=737&langId=en&pubId=7930&furtherPubs=yes6 https://ec.europa.eu/info/sites/info/files/2017-comm-690_en_0.pdf7 http://ec.europa.eu/social/main.jsp?catId=738&langId=en&pubId=7935&furtherPubs=yes8 https://ec.europa.eu/info/sites/info/files/2018-european-semester-country-report-romania-ro.pdf

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time, however, economic growth was accompanied by a clear increase in the employment rate (from 66.3% in 2016 to 68.8% in 2017) and a significant decline in the unemployment rate to the lowest level in the last 20 years. The poverty rate among employed persons has dropped significantly, but is likely to remain the highest in the EU (at the time of publication of this document, not all EU countries had published data for 2017). Progress has been made in combating poverty and social exclusion.

According to the EC assessment, Romania faces difficulties with several indicators in the Social Scoreboard on which the European Pillar of Social Rights9, more specifically: dropout rates, NEETs, gender disparities at the employment level, poverty and social exclusion risk, disincentives to inactive people, social transfers impact, income inequality, digital competence level. At the same time, Romania ranks among the countries with the best performances in terms of increasing the gross disposable income at household level, and it is above average in terms of unemployment rate.

The economic growth of 2017 was especially reflected in earnings and wage increases primarily for public sector employees. The taxation of these categories as well as of the new employees was reflected in the additional budgetary revenues. At the same time, the indirect taxes in 2017 and the income tax for individuals in January 2018 were reduced and budget expenditures increased due to the evolution of the pension point. It is unclear where Romania is on the Laffer curve and if in the future reduced taxation will stimulate the development of economic activities sufficiently enough to rebalance the budgetary situation. For now, although the remuneration of employees is low compared to the EU average, the nominal and structural budget deficits are on an upward path. Moreover, in the latest Country Report, the European Commission appreciates that, following the strong increase in wages in 2017, supported by a 16% increase in minimum wage and wage increases in the public sector, there is a risk of pressure on competitiveness and inflation unless more appropriate incentives to boost productivity are promoted.

Income inequality is high and the redistribution effect of the tax and social benefits system is below the EU average. Poverty among children is high and rising, although for 2017 there is an estimated 8% decrease in the poverty rhythm and social exclusion rate for children under the age of 16. For some vulnerable groups such as young people, single parent families, people with disabilities, Roma, rural and inactive, the poverty rate and social exclusion remain high. The provision of integrated services to these categories remains limited, although changes are foreseen in this respect.

These trends of income evolution and redistribution are not specific to Romania. Although worldwide extreme poverty has decreased significantly since 2000, progress started to slow down since 2013, especially in the less developed countries. Increasingly more people live at an average poverty level, and in-work poverty rate appears to have increased in Europe10. Aging population and the ever higher old-age dependency rate complicates the situation further. Migration, which may be a way to bring balance back into the demographic situation, intensified recently on the backbone of liberalization and the current political situation. The higher flows of immigrants require, on the one hand an efficient absorption on the labor market and social integration of a large number of people in a relatively short time span in countries with a net inflow of immigrants, and on the other hand, policies to cope and respond to the vulnerability associated with the drain of, especially qualified, labor supply in countries facing a net outflow of immigrants, like Romania.

9 https://ec.europa.eu/info/sites/info/files/2018-european-semester-country-report-romania-ro.pdf10 The majority of EU countries that provided EUROSTAT with data on labor poverty by 01.07.2018 report increases in the levels of work poverty in 2017.

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ILO draws attention on the necessity to reorient economic and employment policies towards strengthening labor market institutions, but also towards redesigning social protection systems given the conditions of a slowdown in the increase of minimum and medium wage revenues. ILO concludes that worldwide it is of crucial importance to engage into a focused effort to reduce social and economic inequality by increasing the number of jobs and the quality of jobs. In particular, the latest ILO report advocates the need to stimulate formal employment, job quality and productivity growth in the service sector.

The EC’s country recommendation for Romania (July 2017), referring to the field of labor and social justice is “Develop activation policies on the labor market and promote integrated public services centered on the categories that face the greatest difficulties in integrating into the labor market. Establish, in consultation with social partners, objective criteria for setting the minimum wage. […]. Take action to prevent early school leaving and increase the provision of quality education, in particular among Roma. Adopt the equalization of the pension age for men and women. To combat undeclared work, including through systematic integrated controls”11.

In the Country Report on the progress made in implementing Country Specific Recommendations published on March 07, 2018 within the European Semester, the EC stated that ”some progress has been made in combating undeclared work and limited progress in strengthening specific labor activation measures. There has been no progress in setting the minimum wage and equalizing the retirement age for men and women”.

The EC Country Recommendations for Romania (May 2018) on labor and social justice reiterate the importance of establishing a minimum wage based on objective criteria. Another recommendation is to complete the implementation of the minimum insertion income. A new recommendation, which emerged from the analysis of the European Pillar of Social Rights, is: “Improve the functioning of social dialogue”12. According to the provisions of the Governance Program 2018-2020, the Romanian Government has as a priority to ensure a constant path to improving the living standards of the population, which will result in the strengthening of the social cohesion and the reduction of the gaps between them and the developed EU member states"; the objective is achievable "by promoting coherent and realistic public policies that will lead to a dynamic, flexible and flexible labor market, which will ensure the access of most citizens to quality jobs, depending on their skills and abilities, and to decent incomes."The Governance Program 2018-2020 is fully aligned with the labor market situation and EC recommendations, as well as with Romania's obligations as an EU member state and the modern international practices.

1.3. Analysis of political, economic, social and technological factors relevant for the Labor and Social Justice Sector

Facilitating adaptation to the European Single Market and to the reality of demographic trends and Europe’s inward and outward migration flows, the strategic and programmatic framework existing at the level of the European Union and the UN (Europe 2020 Strategy, Sustainable Development Agenda 2030) has a major impact on policies within the ministry's fields of activity.

11 http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX%3A32017H0809%2822%29 12 https://ec.europa.eu/info/sites/info/files/2018-european-semester-country-specific-recommendation-commission-recommendation-romania-en.pdf

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A certain optimization of the inter-institutional cooperation is under way, following a deeper collaboration of institutional actors in elaborating the legislation and a higher implication of the civil society and of other stakeholders interested in a better formulation and implementation of relevant policies, with the central government commitment towards adoption of better governance practices acting as a catalyzer of this process. On the other hand, the budgetary funds allocated to the Labor and Social Justice Sector are limited as compared with the needs identified and the use of external funding (European Social Funds) is faulty. Rising awareness of the citizens, civil society and social partners regarding the need to improve the quality of services provided to the citizens is slow, and the institutional capacity of the social partners is limited.

Citizens are not fully aware of their and institutions’ responsibilities and obligations in solving social problems, nor of the rights and obligations established through the labor legislation. This lack of awareness fuels the lack of trust towards the institutions in general and at least for a part of the population, towards the proposed reforms in the field of employment and social protection.

The analysis of the economic context relevant for this field is centered on the phenomenon of labor relocation towards economic sectors with higher value added – there in turn follow the fast technological changes. However, the professional reconversion cannot always keep the pace with the technological changes. Moreover, the correlation between the labor market priorities, and their alignment with the target economic development on the one hand, and the curricula in the formal education system remains low. Social economy is under-developed and the discrimination and reduced physical accessibility of many sites impede the employability of persons from vulnerable groups. Part of the population has negative attitude towards work, which limits the employable labor supply.

Romanian labor market proved to be resilient to crisis, with the level of wage and the working time absorbing the shock before the employment. Such market behavior could maintain and even amplify in the future, if there will be no progress in the quantity and quality of labor supply, more precisely if rate of dropout maintains high, graduation rate in the secondary education low, and negative demographic trends (net external migration, low natality rate) continues to generate lower activity rate and higher old dependency rate. On the other hand, working conditions are stable and in process of improvement, with the dramatic decline in the rate of working accidents being only one of the supporting trends, and the low inflation gives a good signal of macroeconomic stability.

The Romanian society is characterized by significant regional and urban-rural disparities in economic development, employment rates, wages and poverty levels, and by communities affected by segregation and lack of solidarity and cohesion, although a certain increase in citizens involvement in voluntary activities is a noticeable trend and contributes to a better support network for people in vulnerable situations. The strong family support for people with disabilities favors the deinstitutionalization policy.

1.4. The legal and strategic framework of the labor and social justice sector

The main normative acts are in the field of labor and social justice are (see extended list Annex 4.1): Law No. 53/2003, republished, as subsequently amended and supplemented - Labor Code; Law no. 263/2010 on the unitary pension system, as subsequently amended and supplemented; Law no. 292/2011 on social assistance, with subsequent amendments and completions; Law no. 27/2004 on the prevention and sanctioning of all forms of discrimination; Law no. 76/2002 on the unemployment insurance system and the stimulation of employment, as

amended and supplemented;

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Government Ordinance no. 129/2000 regarding the vocational training of adults, republished, with the subsequent modifications and completions;

Law no. 319/2006 on safety and health at work, as amended and supplemented Law no. 62/2011 - The Law of Social Dialogue, as amended and supplemented Law no. 248/2013 on the organization and functioning of the Economic and Social Council Law no. 467/2006 on the general framework for information and consultation of employees Law no. 217/2005 on European Works Councils Government Emergency Ordinance no. 28/2009 on the regulation of certain social protection

measures (sectoral committees)

Romania is a signatory to a significant number of international treaties and conventions in the field of labor and social justice, described in Annex 4.2.

This Institutional Strategic Plan is correlated with: The Governance Program 2018-2020 13, documents resulting from the European Semester process, the State Budget Law14 and Law on Social Insurance Budget 15, approved annually, the Institutional Strategic Plan of the Ministry of Labor, Social Protection, Family and the Elderly for the period 2014-2016 and 2017, as well as nine strategic documents relevant for this sector, which are being implemented under the coordination of MMJS, namely: The National Employment Strategy 2014-2020 and the Action Plan for 2014-2020 for the

implementation of the National Strategy; The National Strategy on Social Inclusion and Poverty Reduction for the period 2015-2020 and the

Strategic Action Plan for the period 2015-2020; The National Strategy for Promotion of Active Aging and the Protection of the Elderly 2015-2020 and

the Strategic Action Plan for the Implementation of the National Strategy for Promotion of Active Aging and the Protection of the Elderly 2015-2020;

The National Strategy for Preventing and Combating Domestic Violence for the period 2013-2017 and the Operational Plan for the Implementation of the National Strategy for Preventing and Combating the Domestic Violence for the period 2013-2017;

The National Strategy for the Protection and Promotion of the Rights of the Child for 2014-2020 and the Operational Plan for the Implementation of the National Strategy for the Protection and Promotion of the Rights of the Child 2014-2020;

National Strategy on Equal Opportunities for Women and Men for the period 2014-2017; National Strategy "A barrier-free society for people with disabilities" for the period 2016-2020 and

the Operational Plan on the implementation of the national strategy "A barrier-free society for people with disabilities" 2016-2020;

Youth Guarantee Implementation Plan 2017-2020; Social Assistance Information Management System Plan.

1.5. Institutional framework, service delivery model in the labor and social justice sector, human and financial resources

Public policy documents and normative acts in this sector are elaborated by the MMJS in collaboration with other central public administration authorities and are mainly implemented by the agencies / institutions under its subordination or under its authority, in collaboration with other central and local

13 http://gov.ro/ro/obiective/programul-de-guvernare-2018-2020 14 https://static.anaf.ro/static/10/Anaf/legislatie/L_2_2018.pdf15 http://discutii.mfinante.ro/static/10/Mfp/proiect_buget_2017/ProiectLegeBASS2017Anexe_27012017.pdf

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public institutions and authorities, but also through subcontracting/collaboration/partnership with the private sector and the social partners.

When not governed by law enforcement rules or set out in strategy implementation plans, collaboration with other actors is conducted on the basis of collaborative protocols. In some cases, this type of collaboration proves to be poorly performing and does not ensure effective implementation of joint programs and projects, especially when strategic documents do not detail the responsibility of each partner, or when: measures and actions overlap, programs are not accompanied by strict monitoring mechanisms and do not impose sanctions for delays in achieving or failing to achieve objectives, do not prioritize the budgetary measures and do not employ clear financial resources. One of the objectives of the ISP is to address these limitations from a budgetary perspective.

Citizens interact with MMJS either directly – through the territorial structures of institutions that are subordinated to it or under its authority, or through local authorities. All these institutions have functional systems that citizens can use in order to contact them for consultation or solving specific problems. As well, a number of measures have been taken to increase transparency, operational efficiency, informatization and administrative burden reduction, but also to increase the performance of strategic planning. The progress of these measures is slow though16.

Box 1. The organizational structure of the Ministry of Labor and Social Justice

The Ministry of Labor and Social Justice (MMJS) is the main institutional actor that carries out the governmental policy in the fields of labor and social justice. The MMJS organizes, co-ordinates, guides specific activities and monitors the compliance with legal provisions of subordinate institutions. The two institutions under its authority are delegated the tasks provided for by the legal provisions applicable to the main credit release authority.The institutions subordinated to MMJS are:ANPD - The National Authority for Disabled Persons coordinates at the central level the activities for the protection and promotion of rights for persons with disabilities. ANPD is designated by the central authority to coordinate the implementation of the Convention on the Rights of Persons with Disabilities, adopted by the United Nations General Assembly on 13 December 2006, signed by Romania on 26 September 2007 and ratified by Law no. 221/2010.ANPDCA - The National Authority for the Protection of Children's Rights and Adoption monitors the respect of the rights of all children and takes all measures to contribute to the creation of a worthy society for children, involving the local and central public administration authorities, civil society, parents and children.ANES - The National Agency for Equal Opportunities for Women and Men promotes the principle of equal opportunities and treatment of women and men in order to eliminate all forms of discrimination based on gender in all national policies and programs and develops, coordinates and applies strategies and government policies in the field of preventing and combating domestic violence.ANPD, ANPDCA and ANES are coordinated at the State Secretary level, do not have territorial structures and in the exercise of their duties they collaborate at the local level with the General Directorates for Social Assistance and Child Protection (public institutions subordinated to local authorities), but also with other institutions under the subordination / authority of MMJS.

16 https://ec.europa.eu/info/publications/2017-european-semester-country-reports_en

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ANPIS - The National Agency for Payments and Social Inspection ensures the administration and management in a unitary payment system of the benefits of social assistance and other programs on social services that are supported from the state budget through the budget of MMJS and are implemented locally by the county / Bucharest Municipality agencies for payments and social inspection, in collaboration with local public administration institutions.IM - The Labor Inspection ensures through its own territorial structures the exercise of control in the fields of labor relations, health and safety at work, but also market surveillance, while acting to ensure the social protection of labor based on the provisions of article 41 of the Constitution of Romania (republished) and the provisions of the Conventions of the International Labor Organization no. 81/1947 and 129/1969.Institutions under the authority of MMJS are:ANOFM - The National Employment Agency ensures the coordination of the implementation of employment policies and strategies and the vocational training of jobseekers, developed by MMJS through: the county employment agencies (41) and that of Bucharest municipality, the regional centers for adult vocational training (8), the county centers for adult vocational training and the National Center for Own Staff Vocational Training in Râşnov.CNPP - The National House of Public Pensions manages the public pension and insurance system for accidents at work and occupational diseases, grants pensions and other social insurance benefits through the territorial pension houses and in collaboration with the natural and legal persons with rights and obligations in the field.Institutions coordinated by MMJS:INCSMPS - The National Institute for Scientific Research in the Field of Labor and Social Protection (established in 1990) carries out scientific research activity in the field of labor market and social protection, supporting Romania's efforts to create and develop a sustainable economy, based on modern European principles. Thus, the studies elaborated by the institute's collectives are prioritized according to the central administration's requests and are part of the objectives of national strategies, contributing to substantiating policies in the field.

Note: Further information on the institutional structure and delivery of services can be found in Annex 4.3.

Institutional resources (budgets and staff) are limited, taking into consideration the size of the public policy fields of employment and social justice.

In the staff structure of MMJS there are 10,322 positions in the year 2017, meaning 8.5% of the total positions occupied in the public institutions and authorities17. However, it should not be omitted that some of the legislative and strategic measures are implemented with the help of other institutions (notably the local administration) and through subcontracting or in cooperation with other partners. Still, human resources remain visibly undersized, especially in the case of territorial agencies.

17 According to the Ministry of Finances, in April 2018, the total number of positions occupied in public institutions and authorities was 1 218 631, http://www.mfinante.gov.ro/salariati.html?pagina=domenii.

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Figure 1. Structure of MMJS employees, including the institutions in subordination / under its authority, and the dignitaries

Source: MMJS and the institutions in its subordination / under its authority. The total number of employees in institutions also includes the persons hired in territorial agencies

MMJS faces the same challenges in terms of human resources as the public administration as a whole. Many of these would be addressed by clarifying the role and mandate of civil servants, improving performance assessment systems, increasing transparency and objectivity in staff selection processes, and adopting an integrated approach with respect to the training of public administration staff.

Specific to this area is the fact that MMJS has the task of drafting legislation on the remuneration of staff in the budgetary sector. On July 1, 2017, the Framework Law no. 153/2017 on the remuneration of staff paid from public funds, which solves an important part of the human resources challenges, entered into force.

Table 2. Strengths and weaknesses of the MMJS and institutions in subordination of / coordinated by / under the authority of MMJS

Strengths Weaknesses1. Comprehensive legislation and regulation of the field under the responsibility of MMJS and an adequate set of procedures for implementation of policies

1. Lack of impact studies and of mechanisms of monitoring and implementation, partially due to the lack of interconnected databases and to adequate systems of evaluation of needs and management on information that are insufficient in number and underused

2. A core of civil servants with experience in the field of labor and social justice

2. Lack of continuity in implementation of adopted policies

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3. A coherent set of strategies in the fields regulated by MMJS

3. High fluctuation of staff; unattractive conditions for attracting qualified staff, especially at local level, given limited opportunities of promotion and career development, due instead to limited resources for the Institutional Training Plan, but also to an inflexible human management system, not opened towards innovative practices like flexible hours or teambuilding activities.

4. Coherent organization of structures within the institutions which insures: achievement of the objectives, high territorial representativeness and involvement at county/local level, and decentralized structures through which MMJS can fulfill its mandate and can offer services for all the beneficiaries

4. Cooperation between MMJS and other stakeholders at local level varies; for example, the cooperation between the social assistance services and city halls/schools is well organized and functional; the cooperation between the public employment services, social services, health services, schools, universities and social partners, on one hand and stakeholders from the private sector on the other hand insufficiently developed; collaboration of ANES with the institutions of the local administration are not covered by procedures established institutionally

5. Efficient cooperation with European and international bodies in the MMJS’s field of activity, as well as with similar institutions in other countries; a legal system facilitating inter-institutional collaboration

5. Some of the building used by various institutions are inadequate for the purpose, some of the activities/operations do not use modern technology; limited time for working in teams, not assumed responsibility and incoherent decisions (in time or between structures)

6. Participative elaboration of public policies; openness towards dialogue with social partners within the relevant institutional social dialogue framework at central and local level; successful communication with mass-media and the citizens

6. A certain intra-institutional fragmentation among the specialized services, especially in the rural areas and in what concerns services for adults; for example there is no integrated inter-institutional approach in case of emergency intervention in situations of abuse and neglect

7. Ability to identify social problems through the decentralized structures of the ministry and permanent contact with the local public authorities; schools/school inspectorates, NGOs and the citizens

7. The system of evaluation of persons with disabilities still relies on medical criteria; barriers to social integration, and in particular taking up employment are not defined, which prevent an intervention through a set of diversified services

8. Ability to attract, coordinate, implement and monitor external financial resources

8. Lack of effective protection of inspectors or employees in direct contact with certain categories of beneficiaries

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9. An institutional framework that facilitated an increased number and complexity of social services offered through public-private partnerships

9. During the crisis, active labor market spending halved compared with the period prior to Romania’s integration to the EU, although after the crisis they resumed the increasing trendLabor market active policies are also based on FESI, but as long as there is no continuous and uniform path in launching of calls/contracting of projects, this dependency of external funding might create discontinuities in the sustainability of these policies, especially if ANOFM retains a relative limited capacity to attract vacancies or to offer attractive services for the employers

10. Ability to implement and manage an accelerated reform and development process of the social assistance system leading to services with higher quality and diversification

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2. Mission and vision

The Governing Program 2018-2020 presents the following vision of the government for the field of labor and social justice:

"Providing the highest life standard possible for all citizens must be Romania’s fundamental objective. We will continue our actions to make the labor market more inclusive and to reduce inequalities by promoting coherent and realistic public policies, which will determine a competitive, dynamic and flexible labor market, ensuring access of most citizen to good quality jobs, depending on their competence and skills, for decent incomes and without discrimination”18.

The mission of the Ministry of Labor and Social Justice and the institutions subordinated/under authority/under coordination is:

“The mission of the MMJS is to identify, develop and promote Government strategies and policies in the field of labor, family, social protection, senior citizens, equality of chances, employment relations by applying the principle of social justice and in full compliance with community policies, with the provisions of the Governing Program and the principles of the rule of law and democracy. Given the promoted principle of social justice, the MMJS acts to assure a positive and dynamic interaction of social policies and employment policies, in order to improve the quality of life of all citizens, to assure social cohesion and to reduce poverty and the risk of social exclusion by assuring a good quality social and employment system, which is fair for and accessible to everyone“19.

18 http://gov.ro/ro/obiective/programul-de-guvernare-2018-2020 19http://discutii.mfinante.ro/static/10/Mfp/proiect_buget_2017/Anexa_3/ Ministerul_Muncii_Familiei_Justitiei_Sociale.pdf

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3. Strategic objectives, programs, measures, indicators

Strategic objective 1: Increasing the employment rate of people aged 20-64, on an inclusive labor market, that would support competitive economic growth and lead to a

reduction of in-work poverty and informal labor

According to the National Institute of Statistics, in 2016, the employment rate of the population aged 20-64 was 68.8%, at a distance of 1.2 percentage points compared to the national target of 70%, which was established for the year 2020 in the context of the Strategy Europe 2020.

As regards the employment rate of the working age population (15-64 years old), it was 63.9%, up by 2.3 percentage points compared to the previous year. Growth has been distributed relatively uniformly by age, gender, residence, and education level. So, the employment rate continues to be higher for men (71.8% versus 55.8% for women). In terms of residence area, there is a difference of over 2 percentage points between employment rates in the urban area and rural area.

At the same time, the employment rate of young people (15-24 years) was 24.5%, while that of the elderly (55-64 years) was 44.5%.

The highest level of employment rate for older workers was recorded among graduates of higher education (87.9%). Of those with medium education, 67.5% were employed, while 42.5% of those with low education had a job.

As well, the share of employees increased (but in 2017 remains the lowest in the EU), as well as the level of productivity.

Figure 2. Employment rate and share of employees (%, 20-64 years)

2010 2011 2012 2013 2014 2015 2016 201760.0

65.0

70.0

75.0

80.0

85.0

90.0

60.0

62.0

64.0

66.0

68.0

70.0

72.0

74.0

83.7 84.0 84.0 84.1 84.2 84.6 84.8 85.168.6 70.5 70.2 70.7 71.3 74.1 76.3 76.7

68.6 68.668.4 68.4

69.2

70.1

71.1

72.2

64.8

63.8

64.8 64.7

65.766.0

66.3

68.8

Share of employees EU 28 Romania Employment rate EU 28 Romania

Data source: EUROSTAT

The young NEETs decreased significantly in 2017 (from 18.1% in 2015 to 17.4% in 2016 to 15.2% in 2017). The long-term unemployment rate has fallen, just as number of people discouraged to look for a job. There are important disparities in the functioning of the labor market between urban and rural areas and between regions, and the informal economy is still very high.

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Compared to other countries, unemployment in Romania does not seem to be a worrying phenomenon. According to the International Labor Office (ILO) methodology, in 2017 the unemployment rate was 4.9%,20 while the unemployment rate recorded by ANOFM in December 2017 was 4.02%.21 At the same time, in Romania, the total inactivity rate (32.7% in 2017) is the second highest in the EU.

Thus, the analysis of low unemployment in correlation with the high rate of inactivity can lead to the conclusion that low unemployment rates are not a reflection of high occupation, but a discouraged workforce. 252,000 inactive people declare themselves discouraged22 and that is the reason why the EC recommends strengthening activation policies. In dynamics, however, the increase in employment in the last year was accompanied not only by the decrease in the number of unemployed, but also by a reduction in the number of inactive persons.

Therefore, the implementation of policies for activating and stimulating the working-age population by ANOFM contributes to the improvement of the present situation.

The in-work poverty rate among employees is significantly below the one in the EU. Over the totality of the employed, the in-work poverty, (with a level double than the one in EU) is due to employed people with a different employment status than employee, namely: self-employed and contributing family workers, especially from the rural areas/subsistence agriculture, and including a part of informal workers (those that declare in the survey that they are paid for work), as well as to the high share of those categories in total employment. Besides low and volatile revenues, hence very high level of in-work poverty, a very high share of self-employed and contributing family workers do not participate to contributive schemes like unemployment and pensions and do not benefit of insurance against working accidents. Recently, the share of self-employed and contributing family workers have declined, but it is still very high (almost 24% of total employment in 201723).

Figure 3. In-work poverty (% of employed persons at poverty risk, 18-64 years)

2010 2011 2012 2013 2014 2015 2016 20170.0

5.0

10.0

15.0

20.0

25.0

8.38.8 8.9 9.0

9.5 9.5 9.6

17.8

18.9 18.918.3

19.8

18.8 18.8

16.9

6.36.7 6.9 6.9

7.4 7.4 7.4

5.5 5.8 5.9

4.9

5.85.2

5.8

4.8

Employed persons EU28 Romania Employees EU28 Romania

Data source: EUROSTAT

20 EUROSTAT, http://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=une_rt_a&lang=en. 21 ANOFM, Press release, 2017.22 According to EUROSTAT, in 2017 there were 4.3 million inactive people (15-64) in Romania. Of these, 5.9% (252.5 thousand) considered that there was no job available for them (Romania is thus the sixth-largest in the EU). These are considered to be discouraged here, although it is probably a directly estimated minimum. Romania ranks 26th in terms of the share of inactive people in education and training, and almost 20% of inactive people are included by EUROSTAT at "other reasons".23 EUROSTAT data.

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It should not be forgotten the fact that the in-work poverty rate is an indicator relative to the national average. Consequently, and according to the international best practice, policies to fight the in-work poverty are concentrated on three main lines24. Wage policy insures that the minimum wage remains over the absolute poverty line, and this with minimum negative effects on the wage-earning job creation, while the wage distribution in the public sector is expected to have an impact on the wage asymmetry in the private sector. Fighting the informal employment is essential, simply because it brings the informal workers into the formal employment. Moreover, the employment policy has, at least for the time being, a direct impact on in-work poverty, simply because it encourages the wage earning job creation. Not in the last run, the social benefits that support the workers family and/or those that supplement financially lower wages are redistributive measures with direct effect on the level of in-work poverty.

However, even if the policies to stimulate the formal employment remain a fundamental priority, they need to be corroborated with policies to stimulate internal supply, namely those aiming to increase business investments, and the growth of services and agriculture.

Figure 4. Current and projected levels of the minimum wage

Data source: INSEE, CNP, Governing Program, GD minimum wage, 2006-2017

Because the share of employees in the public sector in the total number of employees is high, the level and distribution of salaries per categories of employees (by education, positions, etc.) in the public sector have a direct impact not only on the average wage, but also on its distribution. The Governing Program aims for an important initial increase of salaries in the public sector, which will deepen the already existing gap, to consequently influence an almost equally important increase of salaries in the private sector and a reduction in the asymmetry of wage distribution. In addition, in order to reduce the external migration of qualified employees from the key public domains, a decision was recently made to increase the wages in education and health.

24 https://www.oecd.org/els/43650040.pdf

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Prognosis

Figure 5. Current and projected levels of the ratio between the gross wage in the public and private sectors

Data source: INSEE, CNP, Governing Program

Structural reallocation between sectors is a positive development: the number of low skilled workers in agriculture and industry is reduced and total employment in services, constructions and the public-sector increases. Romania is facing a deficit in certain skills and competences, in particular in information and communication technologies (ICT), education, health and services, due to low performance of the education and long-life learning system corroborated with less attractive wage and working condition when comparing with the external offer. In this respect, the training programs offered by ANOFM have an important role in harmonizing the labor demand and supply on the internal market. There is a low internal mobility of labor25, but the reform of the measures to stimulate it may contribute to the balancing of the skills deficit and to reducing regional disparities in employment.On medium and long term, unemployment and the low rate of employment among the young, in conjunction with an aging population and an increase in the elderly dependency rate (expected to double by 2050) remain real threats.Table 3. Financing of the programs from the Strategic Objective 1

Budget Breakdown by Programs for Strategic Objective 1

Total value, thou. RON

Value/year, thou RON

2018 2019 2020 2021

Program 1.1. Employment for all 1.870.292 426.094 458.043 487.623 498.532Program 1.2. Passive measures for the unemployed 1.914.560 509.330 482.826 461.202 461.202

Program 1.3. Working conditions 877.426 156.977 259.198 228.524 232.727 Program 1.4. Insurance for work accidents and occupational diseases 612.899 125.008 150.309 168.791 168.791

Total OS 1 5.275.177 1.217.409 1.350.376 1.346.140 1.361.252

(The amounts identified for measures, budget programs and strategic objectives represent an estimation of the budgetary needs, which was conducted when the document was drawn up. The amounts will be revised when elaborating the budget proposals.)

25 https://ec.europa.eu/info/publications/2017-european-semester-country-reports_en

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Prognosis

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Strategic obiective 1: Increasing the employment rate of people aged 20-64, on an inclusive labor market, that would support competitive economic growth and lead to a reduction of in-work poverty and informal labor

Program 1.1: Employment for all

Measures of Program 1.1.Measure 1.1.1.1.: Identification and registration of young NEETs in the integrated database of ANOFM Measure 1.1.1.2.: Information and career counselling servicesMeasure 1.1.1.3.: Labor matching servicesMeasure 1.1.1.4.: Assistance and consultancy services for a business start-up or for starting a self-employed professional activityMeasure 1.1.1.5.: Partial unemployment benefits payed to the unemployed who take up employment prior to the expiration of the legal period for receiving unemployment benefitMeasure 1.1.1.6.: Mobility support schemes (commuting grants)Measure 1.1.1.7.: Mobility support schemes (resettlement grants)Measure 1.1.1.8.: Mobility support schemes (relocation grants)Measure 1.1.1.9.: Employment grants for graduatesMeasure 1.1.1.10.: Activation grants for the unemployed who do not collect unemployment benefitsMeasure 1.1.1.11.: Personalized social accompanimentMeasure 1.1.2.1.: Internship schemes for higher-education graduatesMeasure 1.1.2.2.: Temporary jobs scheme for pupils and students during the holidaysMeasure 1.1.2.3.: Apprenticeship vocational training schemes Measure 1.1.3.1.: Professional training coursesMeasure 1.1.3.2.: Evaluation and certification of professional skills acquired through non-formal and informal learningMeasure 1.1.4.1.: Subsidies for employers to increase and diversify the professional skills of employeesMeasure 1.1.4.2.: Outplacement services to reduce risk of unemployment Measure 1.1.5.1.: Subsidies to employers who have been awarded public services or social services contracts Measure 1.1.5.2.: Subsidies to employers who hire graduatesMeasure 1.1.5.3.: Subsidies to employers who hire graduates with disabilitiesMeasure 1.1.5.4.: Subsidies to employers who hire unemployed aged 45 or moreMeasure 1.1.5.5.: Subsidies to employers who hire persons from single-parent familiesMeasure 1.1.5.6.: Subsidies to employers who hire long-term unemployedMeasure 1.1.5.7.: Subsidies to employers who hire young NEETsMeasure 1.1.5.8.: Subsidies to employers who hire people with disabilitiesMeasure 1.1.5.9.: Subsidies to employers who hire people with less than 5 years to the retirementMeasure 1.1.5.10.: Subsidies to employers who hire young persons at risk of marginalisation

Program 1.2: Passive measures for the unemployed

Measures of Program 1.2.

Measure 1.2.1.1.: Unemployment benefits, social security contributions and health insurance contributions for the recipients of unemployment benefits

Measure 1.2.1.2.: Redundancy payments

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Strategic obiective 1: Increasing the employment rate of people aged 20-64, on an inclusive labor market, that would support competitive economic growth and lead to a reduction of in-work poverty and informal labor

Program 1.3: Working conditions

Measures of Program 1.3.Measure 1.3.1.1.: Decent and motivating wagesMeasure 1.3.1.2.: Implementation of the framework-law on the wage system for the public-sector employeesMeasure 1.3.2.1.: Achieving the health and security at work objectives from the MMJS Sectoral R&D Framework ProgramMeasure 1.3.2.2.: Achieving the goals assumed in the Government's Annual Work PlanMeasure 1.3.3.1.: Strengthen measures to prevent and reduce the undeclared work (annual plan of measures)Measure 1.3.3.2.: Fight against gender discrimination, harassment, and sexual harassment on the labour marketMeasure 1.3.3.3.: Increasing the safety of the workplaceMeasure 1.3.3.4.: Increased control on the establishment and provision of statutory rights to employees as derived from labour legislation, relevant collective contract, and individual labour contractsMeasure 1.3.3.5.: Raising the awareness of the socio-economic environment on the compliance with the legislation in force and ensuring working conditions

Program 1.4: Insurance for work accidents and occupational diseases

Measures of Program 1.4.Measure 1.4.1.1.: Higher accessibility for the beneficiariesMeasure 1.4.1.2.: Simplification and higher efficiency of the system for beneficiariesMeasure 1.4.1.3.: Improving benefits to families of occupational accidents and occupational diseases victimsMeasure 1.4.2.1.: Ensuring the flow of European documents without disruptionsMeasure 1.4.2.2.: Reducing the response times of competent institutions according to the requirements of European regulationsMeasure 1.4.3.1.: Diversification of annual prevention programs structured on EC Directives / national legislationMeasure 1.4.3.2.: Focus of the preventive activities towards the SMEsMeasure 1.4.3.3.: Progressive development of information / communication campaigns addressed to the business environment

Strategic objective1 targets long-term results in increasing the employment rate. This should be achieved through the implementation of the following programs.

Program 1.1: Employment for all

Motivation: Diminishing the employment gaps between Romania and the EU and between the current and potential employment and the transformation of vulnerable employment into a sustainable one answers to the need of improving the use of internal labor resources, (see also Figure 2 and the comments around it).

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Employment rate for persons aged 20 to 64. Target 2020: 70%In-work at risk of poverty rate. Target 2020: 15,8%

Impacts

(1.1.1) Facilitating the integration of young NEETs into the labor market (through specific measures and programs): The share of young people under the age of 25 who take up employment, attend training courses, conclude an apprenticeship contract at the workplace or conclude an internship contract in total young people aged less than 25 years registered with ANOFM. Target 2020: 75%(1.1.2) Increasing the employment of the persons registered with ANOFM and preventing unemployment: Share of filled vacancies. Target 2020: 75%; Share of registered jobseekers who take up employment. Target 2020: 40%(1.1.3) Facilitating the transition from school to work: Share of registered jobseekers that conclude an apprenticeship contract. Target 2020: 0.02%; Share of higher education graduates that conclude an internship contract of the total number of graduates with higher education with ANOFM in the reference year. Target 2020: 1.5%(1.1.4) Improving the skills of persons registered at the ANOFM through professional training: Share of the persons who take-up employment after no more than 6 months from graduating from a professional training course. Target 2020: 35%; Share of the persons who take up employment no more than 12 months qfter graduating from a professional training course organized by ANOFM. Target 2020: 40%(1.1.5) Preventing unemployment and strengthening employment: Share of persons receiving outplacement services in total persons made redundant collectively. Target 2020: 20%; Share of subsidies to employers for training programs addressed to their own employees in total requests. Target 2020: 40%(1.1.6) Stimulating employers to fill vacancies: The share of employed persons as a result of incentives granted to employers in total number of persons employed following the measures taken by ANOFM. Target 2020: 15%(1.2.1) Ensuring the protection of people in the unemployment insurance system: Share of unemployed receiving the unemployment benefit in the total number of unemployed (average stock). Target 2020: 20%(1.3.1) Reducing the in-work at risk of poverty rate and the asymmetry of the wage curve: The share of the country's guaranteed gross minimum wage in the monthly average gross wage. Target: NA(1.3.2) Improving the legal framework on safety and security at work and insuring the legal framework for provision of products subject to MMJS approval: Number of awareness sessions addressed to economic agents, workers and their representatives: 490(1.3.3) Insuring employers’ full compliance with the legislation in the field of labor relations, safety and security at work and fight against discrimination: Number of petitions/1000 employees. Target 2020: 14.15(1.3.4) Focusing the occupational accidents and occupational diseases schemes towards better support for the beneficiaries: Share of benefits granted per 100 employees. Target 2020: 4.5 (1.4.1) Harmonizing the national legislation with the European Regulations as requested by the Electronic Exchange of Social Security Information (EESSI) : Level of employers ‘conformity with the requirements of the EU regulation - Share of non-conforming cases in total requests %. Target 2020: 20%(1.4.2) Incentives to employers to place prevention measures: Higher security and safety at work - Share of implemented measures in total recommended. Target 2020: 35%

Program results

The 70% target for employment rate of persons aged 20-64 for the year 2020 was adopted by Romania within the Europe 2020 Strategy, COM(2010) 2020 final Communication from the Commission, EUROPE 2020 A strategy for smart, sustainable and inclusive growth.

The main strategic document relevant for this program is the National Strategy for Employment 2014-2020, approved together with its implementation plan by the Government Decision (HG) 1071/2013.

The strategic document for youth employment is the Youth Guarantee Implementation Plan 2017-2020, approved by Memorandum by the Romanian Government in July 2017. This strategic document continues the measures and programs implemented through the Youth Guarantee Implementation Plan 2014- 2015, drafted following the Council Recommendation to the Commission and the Member States on the establishment of the Youth Guarantee, but also proposes a series of new reforms and initiatives.

The activation and support measures under the Youth Guarantee Implementation Plan 2017-2020 were planned in accordance with the national legislation in the field, namely: Law no. 76/2002 on the unemployment insurance system and the stimulation of employment, with subsequent amendments and completions, Law no. 279/2005 on apprenticeship at the workplace, republished, as subsequently amended and supplemented, Law no. 335/2013 regarding the performance of the internship for the graduates, with the subsequent modifications and completions.

The employment rate (for the age group 20-64 years26) continued in 2017 the upward trend started in 2013 amid the accelerated economic growth. The 68.8% level went up with 2.5 percentage points since the previous year and is at 2.2 percentage points away from the national target of 70% in the context of the Europe 2020 Strategy.

The figure of 68.8% represents the highest level achieved by this indicator in the last 10 years, superior to the values recorded in the pre-crisis period (2007-2008).

In this context, to maximize the positive economic outlook in terms of social justice, the Program 1.1 Employment for all is addressed, on a non-discriminatory basis, to all persons registered in the ANOFM records, in order to increase their chances of employment by providing personalized measures. This program give priority to the more vulnerable categories: youth, graduates, long term unemployed, unemployed over 45y, unemployed single parents, unemployed who, according to the law, could apply for early retirement in a timeframe of 5 years from taking up employment, people with disabilities, roma, people from the rural areas, youth leaving the orphanages, former convicts etc. To this could be added the redundant workers and those under the imminent risk to become unemployed.

The Program 1.1 Employment for all promotes the implementation of integrated services programs / packages tailored to each individual according to the level of occupancy (easily occupied, environmentally-friendly, hard to occupy, very hard to occupy), determined following the profiling procedure, consisting of informing and professional counseling, work mediation, counseling and assistance in starting a self-employment or starting a business, free vocational training, assessment and certification services of non-formal vocational skills, on-the-job training, mobility stimulation, activation bonuses, personalized social accompaniment, inclusion in apprenticeship schemes, internships for higher education graduates, employment by subsidizing employers.

The main policy directions of the Program 1.1 Employment for all are the following: 1) preventing unemployment and stimulating employment for jobseekers through: information and professional counseling, work mediation, counseling and assistance in starting a self-employment or starting a business, the granting of mobility bonuses, relocation premiums, activation bonuses, employment bonuses, personalized social accompaniment; 2) Improving the level of competencies of persons

26 Age group used for the European employment target in the context of the Europe 2020 strategy.

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registered with ANOFM through vocational training programs tailored to labor market requirements, including by enrolling them in flexible training paths and enabling transition from school to labor market (apprenticeship at workplace and internships for graduates), as well as by providing services for the assessment of skills acquired in non-formal and informal systems; 3) preventing unemployment and strengthening employment; 4) stimulating employers through job subsidy measures for certain categories of people; specific support for young NEETs.

The Program 1.1 Employment for all also reflects the commitments made by Romania following the Council Recommendation (2013/C120/01) of April, 22, 2013 on the establishment of a Youth Guarantee and aims to ensure that all young people under the age of 25 who lose their jobs or who do not find employment after completing their studies, receive a good job offer within four months of registering with employment agencies or youth employment centers, to continue education, to enter into apprenticeship or to complete an internship.

Therefore, among the categories receiving special attention under Program 1.1 Employment for all are the young NEETs, who are targeted through to specific measures, funded by the Unemployment Insurance Fund (BAAS/UIF), the European Social Fund (ESF) and by the Youth Job Mobility Initiative(YJMI). These measures are based on statistical data, which reveals a youth unemployment rate (15-24 years) of 18.3% in 2017, which places Romania in 11/28 (in increasing order) among EU countries, while, from the point of view of the employment rate for the same category, with the value of 24.5% in 2017, Romania ranks 21/28 (in decreasing order). The explanation is the low activity rate for young people, with 11pp below the European average.

In 2017, the NEETs youth rate27 was 15.2%, going down sharply compared to the previous year's figure (17.4%), but standing by 4.3pp above the EU27 average (10.9%). The decrease is due to the decrease in unemployment and not to the increase in activity rates, which emphasizes the need to strengthen the activation policies of young NEETs. In order to better respond to this objective, ANOFM, in partnership with MMJS, MEN and ANPIS, implement the INTESPO project - Recording of young people in the Public Employment Service Records. Within the project, local intervention teams of employment experts, social workers, school counselors / school mediators were set up in each county to support the young NEETs according to their concrete needs28.

In terms of gender differences, for young women, in 2017 the value is as a much higher level - 18.4%, compared with 11.1% in the EU28, and for young men, the value recorded in Romania, 12.1%, is only 1.5pp higher than the EU27 average (10.6%). These statistical data draw attention not only to the need to combat gender discrimination at work, but also to support young families with children in achieving a family-work balance.

The main factors contributing to high unemployment and high young NEETs rate are: the low level of education and training of young people at the time of the transition to the labor market, the inconsistency between the qualifications of young people and the skills required by employers, the high expectations of young people from a job (salary, work environment, other benefits), limited job offer29.

Discouraging the dependency on the social security measures is seen as the main means to combat inactivity; this will be done by: a) strengthening the connection with employment measures, gradual diminishing passive measures and developing active measures of social assistance; b) making beneficiaries of social assistance measures priority categories for active employment measures (see also Objective 3).

27 Young people aged 16-24, who are not on the labor market or who do not attend any education or training program. EUROSTAT data.28 http://www.anofm.ro/expertii-de-ocupare-din-echipele-locale-de-interventie-intespo 29 Memorandum on: Approval of the Youth Guarantee Implementation Plan 2017-2020.

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Employment policy is developed by the MMJS, through the Directorate for Employment, Competencies and Vocational Mobility, in collaboration with various institutional partners.

Program 1.1 is financed from the following sources:

1. MMJS budget2. Unemployment insurance budget (BAS)3. POCU, Axis 1, 2 and 34. Other sources (potentially)

Objectives: Program 1.1 has five objectives and their results are to be measured by 2021 via the following result indicators:

Specific Objective P1.1.1: Increasing the employment rate of registered jobseekers and prevention of unemployment

(1.1.1_1) The share of young people under the age of 25 who take up employment, attend training courses, conclude an apprenticeship contract at the workplace or conclude an internship contract

(1.1.1_2) Rate of filling the vacancies declared by employers and registered with ANOFM in the total jobs declared by the employers and registered with ANOFM

(1.1.1_3) Employment rate of all jobseekers registered with ANOFM in total number of jobseekers registered with ANOFM

Specific Objective P1.1.2: Facilitating the transition from school to work

(1.1.2_1) Share of persons concluding an apprenticeship contract of all jobseekers registered with ANOFM

(1.1.2_2) Share of graduates with higher education concluding an internship contract in all graduates with higher education registered with ANOFM in the reference year

Specific Objective P1.1.3: Improving the skills of persons registered at the ANOFM through professional training

(1.1.3_1) Share of persons who take-up employment 6 months after graduation examinations of the total number graduates of vocational training programs organized by ANOFM

(1.1.3_2) Share of persons who take-up employment 12 months after graduation examinations of the total number of graduates of vocational training programs organized by ANOFM

Specific Objective P1.1.4: Preventing unemployment and strengthening employment

(1.1.4_1) Share of employers' subsidies for vocational training programs for their own employees in total requests

(1.1.4_2) Share of persons receiving outplacement services in total persons made redundant collectively

Specific Objective P1.1.5: Stimulating employers to fill vacancies

(1.1.5_1) Share of employed persons as a result of incentives granted to employers in the total number of persons employed following the measures taken by ANOFM

Measures: Program 1.1 includes measures provided for in Law no. 76/2002 on the unemployment insurance system and the stimulation of employment (as subsequently amended and supplemented), Law no. 279/2005 on apprenticeship at the work place (republished, with subsequent amendments and completions), Law no. 335/2013 regarding the performance of the internship for the graduates (with the subsequent modifications and completions) and Government Ordinance no. 129/2000 regarding the vocational training of adults (republished, with subsequent

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amendments and completions) and Law no. 72/2007 on the stimulation of the employment of pupils and students (with the subsequent modifications and completions), the Youth Guarantee Implementation Plan 2017-2020. It also includes the presentation of the targets of related indicators. The allocated budgets are shown in Annex 1 and the targets for the indicators are presented in Annex 3.

(1.1.1) Increasing the employment rate of registered jobseekers and prevention of unemployment

1.1.1.1 Identification and registration of young NEETs in the integrated database of ANOFM

1.1.1.2 Information and career counselling services

1.1.1.3 Labor matching services

1.1.1.4 Assistance and consultancy services for a business start-up or for starting a self-employed professional activity

1.1.1.5 Partial unemployment benefits payed to the unemployed who take up employment prior to the expiration of the legal period for receiving unemployment benefit

1.1.1.6 Mobility support schemes (commuting grants)

1.1.1.7 Mobility support schemes (resettlement grants)

1.1.1.8 Mobility support schemes (relocation grants)

1.1.1.9 Employment grants for graduates

1.1.1.10 Activation grants for the unemployed who do not collect unemployment benefits

1.1.1.11 Personalized social accompaniment

(1.1.2) Facilitating the transition from school to work

1.1.2.1 Internship schemes for higher-education graduates

1.1.2.2 Special scheme for pupils and students during the holidays

1.1.2.3 Apprenticeship vocational training schemes

(1.1.3) Improving the skills of persons registered at the ANOFM through professional training

1.1.3.1 Professional training courses

1.1.3.2 Evaluation and certification of professional skills acquired through non-formal and informal learning

(1.1.4) Preventing unemployment and strengthening employment

1.1.4.1 Subsidies for employers to increase and diversify the professional skills of employees

1.1.4.2 Outplacement services to reduce the risk of unemployment

(1.1.5) Stimulating employers to fill vacancies

1.1.5.1 Subsidies to employers who have been awarded public services or social services contracts

1.1.5.2 Subsidies to employers who hire graduates

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1.1.5.3 Subsidies to employers who hire graduates with disabilities

1.1.5.4 Subsidies to employers who hire unemployed aged 45 or more

1.1.5.5 Subsidies to employers who hire persons from single-parent families

1.1.5.6 Subsidies to employers who hire long-term unemployed

1.1.5.7 Subsidies to employers who hire young NEETs

1.1.5.8 Subsidies to employers who hire people with disabilities

1.1.5.9 Subsidies to employers who hire people with less than 5 years to the retirement

1.1.5.10 Subsidies to employers who hire young persons at risk of marginalisation

Success factors: The main success factors of this program are the following: a) better matching of labor demand with labor supply; b) effective target-group information on active measures so that they understand the benefits; c) an optimal budgeting of the measures, with additional allocations from ESIF; d) continuing the implementation of measures to increase the capacity of ANOFM; e) engaging and empowering implementing partners.

The implementation of these measures depends mainly on the overall economic development and the pace of creating sustainable jobs in economy sectors with increased competitiveness. According to the EC Country Report 2018, the reform of the National Employment Agency has not yet been implemented and will need to be supported in the long term through strong political commitment.

Program 1.2: Passive measures for the unemployed

Motivation: According to EUROSTAT, in 2017 the unemployment rate was 4.9%, being in decrease compared to the previous year, when it was 5.9%.

Also, the ANOFM data for 2017 indicate that the average number of registered unemployed was 374,650, being in sharp decrease compared to the previous year. Of these, 73,066 (approximately 20%) were unemployed. Unassigned unemployed people are usually either persons having either stopped receiving unemployment benefits (due to expiration of the provisioned period) without being able to enter the labor market or do not meet the statutory conditions for unemployment benefits, but use the services of the employment agency to find a job.

The individuals who have the status of unemployed are entitled to claim the unemployment allowance, according to Law no. 76/2002, with the subsequent amendments and completions, which is intended to ensure partial compensation of the income of the insured due to job loss or the income of graduates who could not get employment.

At the same time, persons made redundant by collective redundancy can benefit, in addition to the unemployment allowance, from a supplementary income, which is compensatory.

Program 1.2., Passive measures for the unemployed pays the unemployment benefits and the redundancy payments and its implemented by ANOFM.

Program 1.2 is financed from the following source:

1. Unemployment insurance budget (BAS)

Objectives: Program 1.2 has one specific objective and its results are to be measured by 2021 via the following result indicators:

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Specific Objective P1.2.1: Ensuring the protection of people in the unemployment insurance system

(1.2.1_1) Share of unemployed receiving the unemployment benefit in the total number of registered unemployed30

Measures: Program 1.2 includes financial support measures provided for by Law no. 76/2002, as subsequently amended and supplemented, and the Government Emergency Ordinance no. 36/2013 regarding the application in the period 2013-2018 of social protection measures granted to the persons dismissed through collective redundancies under redundancy plans, as subsequently amended and supplemented. The allocated budgets are shown in Annex 1 and the targets for the indicators are presented in Annex 3.

(1.2.1) Ensuring the protection of people in the unemployment insurance system

1.2.1.1 Unemployment benefits, social security contributions and health insurance contributions for the recipients of unemployment benefits

1.2.1.2 Redundancy payments

Success factors: For the successful implementation of the program, it is necessary to: a) budget and sequence the implementation of appropriate measures; b) continue the measures for strengthening the capacity of ANOFM.

Program 1.3: Working conditions

Motivation: The concept of good quality working conditions that is used in this document includes the following aspects:

a. decent and motivating wages; b. lack of discrimination and sexual harassment at the workplace; c. low level of informal employment; d. good level of safety and security at work and a fully functional legal framework for provision of

products subject to MMJS approval (technical equipment – machinery, equipment, protection systems for use in environments with risks of explosion, individual protection equipment, explosives for civil use and pyrotechnical articles), according to the essential safety requirement

Decent and motivating wages

Within the legal requirements, the wage is freely established on the market. Still, the MMJS has at hand two policy instruments by which it can influence the wage dynamics, namely the level of minimum wage and the public-sector salaries. Moreover, the fiscal policies can ensure a fine readjustment of the market.

The rhythm of wage increases has accelerated in recent years, driven by an increase in skilled labor shortages and boosted by gross minimum wage increases of 16%, to 1,450 RON (about 315 EUR) and the wage increases in the public sector. It is expected that wages will continue to rise in 2018, as the net minimum wage was increased by another 9% in January, In the past 11 years, the share of the minimum wage in the average wage has had an upward trend, albeit below the European average. The share of employees with salaries below 2/3 of the national median, albeit very slightly decreasing, remains close to 25%, the second in the EU. Approximately 30% of workers were paid

30 It is superior to the number of people registered by redundancy, and their weight in total outflows has increased. At the same time, the number of vacancies registered at ANOFM during the year 2016 was 33.25% lower than in 2015.

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with the minimum wage in 201631. This means that at this relatively low level, the minimum wage as a policy instrument has a limited capacity to influence the evolution of the average wage.

According to the regulations of the Labor Code, the minimum guaranteed wage is decided (half)yearly through Government Decision (HG), initiated by the Minister of Labor and Social Justice, the Minister of the Economy and the Minister of Finances, after consultation with social partners. The Government Decision no. 846/2017 sets the country's minimum gross basic salary guaranteed for 2018 in accordance with the Governance Program.

A study by the National Institute for Scientific Research in the Field of Labor and Social Protection provides detailed information on the profile of those who benefit from the minimum wage.

Lack of discrimination and sexual harassment at the workplace

Regarding women discrimination at work, in Romania this is especially visible in employment rates: 16pp gender gap for the age bracket 15-64, among the highest in Europe in 2017. However, the gender gap is close to non-existent when it comes to wage, 5.8pp, only Italy and Luxembourg having slightly lower differences (4 pp), the lowest in Europe. When it comes to the level of managers and top managers, Romania is a European leader with the lowest gender pay gap. 40% of Romanian managers are women, Romania thus ranking fourth among EU countries based on this indicator32

Harassment and sexual harassment at work have low visibility and are difficult to prove, having physical and psychological consequences with a negative impact on the victims’ professional life, on their performance at work. This phenomenon takes various forms and, even if it makes the victim feel uncomfortable and unsafe at work, the feelings of fear and guilt lead most often to avoiding complaining about it. If, on average, in Europe 55% of women experience a form of sexual harassment, in Romania only 11% of the respondents admitted to have been the target of sexual harassment33. Thus, stimulating women employment (see Program 1.1), analyzing the causes of discrimination in employment and the awareness of employees, employers and IM inspectors (Labor Inspection) on the manifestations and consequences of discrimination and sexual harassment are the main lines of action against these phenomena. The EC Country Report for Romania 2018 considers social dialogue to have an untapped potential in the field of combating gender discrimination.

Promoting equality of chances is fundamental in terms of strategy and regulation by the ANES, which also aims to eliminate all forms of gender-based discrimination, in all national policies and programs. ANES thus exerts control on the active and visible integration of the gender perspective in all national policies and programs, while the actual control of compliance with the law under implementation is exerted by the IM. ANES works with other institutional partners, including the local administration, in achieving these specific programs.

Good level of safety and security at work and a fully functional legal framework for provision of products subject to MMJS approval (technical equipment – machinery, equipment, protection systems for use in environments with risks of explosion, individual protection equipment, explosives for civil use and pyrotechnical articles), according to the essential safety requirement

31 Estimated based on http://www.mmuncii.ro/j33/images/Documente/Transparenta/2016/Studiu_salariu_minim_proiect.pdf. The PIAROM study, based on REVISAL data, published in July 2018, estimates that the share of wage earners in the minimum wage is currently at 36.59%. https://www.piarom.ro/dinamica-piete-uniuni-pentru-principalelor -industrii-employing, 2016-2017.32 http://ec.europa.eu/eurostat/documents/2995521/7896990/3-06032017-AP-EN.pdf/ba0b2ea3-f9ee-4561-8bb8-e6c803c24081 33 ISP MMJS 2014-2020.

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In 2017 the average loss of working days/person that suffered a work accident was 52,28 days, 6,1% lower than in 2016, (55.68 days). The total day lost due to working accidents by 1000 employees was 38.02 ‰, 16.1 % lower than in 2016 (45.32 ‰).

In 2017 4,804 persons suffer work accidents 7.5 % less than in 2016 (4,903 persons). The incidence rate (number of persons suffering a work accident per 1000 employees) was 0.93 ‰ in the total number of injured persons, decreasing by 6.1% compared to 2016, when it was 0.99 ‰.

172 suffered a fatal accident in 2017, 38.1% less than in the previous year (278 fatalities) . The incidence rate (the number of fatal injuries per 1,000 workers) was 0.03 ‰ in the total of fatal injured persons, decreasing by 40% compared to 2016, when it was 0.05 ‰. In 2014, according to EUROSTAT, Romania had the highest incident rates in EU when it came to fatal accidents, but the lowest on total accidents.

A careful analysis of these findings is needed to focus better the efforts to define/register/report working accidents, as well as a refining of standards and prevention measures at sector level. In 2017, most of the fatal working accidents were recorded in construction, land transport and pipeline transport, forestry and logging, agriculture, hunting and related services34.

A correct approach of the issues related with health and security are opportunities for better efficiency of the enterprise not only for the protection of the employees. At macroeconomic level, the costs estimated for the member states vary between 1% and 3% per year. Prevention is found to play an important role in mitigation of these costs.

Formulation of policies and strategies on occupational health and safety at work are the attributions of the MMJS through the Occupational Health and Security department. The MMJS established the legislative framework for introducing on the market the products in its area of competence and issues orders to appoint bodies in order to notify orders of approval of harmonized national standard lists.IM, the competent authority regarding the control of enforcement of the law referring to occupational health and security, as well as market supervision.

The MMJS and the subordinated institutions work together with the Ministry of Health and County Health Departments, the National Institute of Research-Development for Labor Protection “Alexandru Darabont” (INCDPM), the National Institute of Research and Development for Mine Security and Anti-explosive protection Petroşani (INSEMEX), the National Public Health Institute (INSP), the national accreditation body – RENAR and the national standardization body – ASRO. The MMJS R&D plan has an important role in promoting the policies in the field of health and safety.

The assessment of the implementation of the European Strategy 2007-2012 on Safety and Health at Work confirmed that its implementation was generally effective and that its main objectives were achieved, thus contributing to improving the implementation of the legislation for safety and security at work and clarifying EU regulations. In 2014, the European Commission adopted the "European strategic framework for health and safety at work 2014-2020". Taking into account the main challenges identified at the level of the European Union as well as the strategic objectives set out in the Communication of the European Commission, under the coordination of the mandate structure within the MMJS and the involvement of all the other entities with attributions in the field, the National Strategy on Safety and Security at Work for the period 2018 - 2020, adopted by the Government of Romania by Decision no. 191/2018. The Strategy establishes, on the basis of the consensus of all parties involved, the common framework of actions to be carried out by all competent authorities, relevant institutions and social partners to achieve the intended objectives.

34 Data on working accidents have as source the MMJS Statistical Bulletin, http://www.mmuncii.ro/j33/images/buletin_statistic/conditii_an_2017.pdf

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In order to promote, manage, monitor and adjust in a systematic, evidence-based manner a series of actions within the National Plan for the Implementation of the National Strategy on Safety and Security at Work for the period 2018 - 2020, the MMJS will use as a financial instrument the Sectoral Research and Development Plan 2019-2020.

Program 1.3 is financed from the following sources:

1. MMJS budget2. State Social insurance budget (BASS)3. POCU4. Other sources (potentially)

Objectives: Program 1.3 has three specific objectives and its results are to be measured by 2021 via the following result indicators:

Specific Objective P1.3.1: Reducing the in-work at risk of poverty rate and the asymmetry of the wage curve(1.3.1_1) Share of the country's guaranteed gross minimum wage in the monthly average gross wageSpecific Objective P1.3.2: Improving the legal framework in the field of safety and security at work and ensuring the necessary measures for the application of the EU legislation that harmonizes the conditions of marketing of products in the field of competency of MMJS (1.3.2_1). Number of awareness sessions addressed to economic agents, workers and their representatives

Specific Objective P1.3.3: Insuring employers’ full compliance with the legislation in the field of labor relations, safety and security at work and fight against discrimination (1.3.3_1). Number of petitions/1000 employees Measures: Program 1.3 includes actions planned by relevant sectorial strategies and will focus at the level of measure on those activities prioritized by the Governing Program 2017-2020. Corresponding budgets are detailed in the Annex 1, while the targets at measure level are presented in Annex 3.

(1.3.1) Reducing the in-work at risk of poverty rate and the asymmetry of the wage curve

1.3.1.1 Decent and motivating wages

1.3.1.2 Implementation of the framework-law on the wage system for the public-sector employees

(1.3.2) Improving the legal framework in the field of safety and security at work and ensuring the necessary measures for the application of the EU legislation that harmonizes the conditions of marketing of products in the field of competency of MMJS

1.3.2.1 Achieving the health and security at work objectives from the MMJS Sectoral R&D Framework Program

1.3.2.2 Achieving the goals assumed in the Government's Annual Work Plan

(1.3.3) Insuring employers’ full compliance with the legislation in the field of labor relations, safety and security at work and fight against discrimination

1.3.3.1 Strengthen measures to prevent and reduce the undeclared work (annual plan of measures)

1.3.3.2 Fight against gender discrimination, harassment, and sexual harassment on the labour market

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1.3.3.3 Increasing the safety of the workplace

1.3.3.4 Increased control on the establishment and provision of statutory rights to employees as derived from labour legislation, relevant collective contract, and individual labour contracts

1.3.3.5 Raising the awareness of the socio-economic environment on the compliance with the legislation in force and ensuring working conditions

Success factors: The main factor of success of this program is the financial sustainability of the measures to increase salaries. This objective cannot be achieved without an economic growth accompanied by job creation in the private sector, a problem which until now does not seem easy to solve. A second factor of success is creating a solid institutional framework for social dialogue.

A factor of success for IM programs in general will thus be a very good targeting of the nature and subjects of periodic controls in all IM sub-domains, including in limiting informal work. For example, in the field of occupational health and safety at work, the SMEs face difficulties and the lack of incentives to comply with the law, while the complaining process and the process to discover cases of harassment and discrimination is long and without immediate and visible results.

And, in the case of this program, it is very important to assure a successful cooperation with the intra- and extra-institutional partners, considering the complex implementation structure, with multiple ramifications.

The legislation on Safety and Security at Work (SSW) is harmonized with EC directives and ILO conventions in the field, including insurance for work accidents and occupational diseases. Further review of occupational health and safety legislation in relation to EU policy and the relevant issues identified at national level, as planned, are an additional success factor. Moreover, in order to support the enterprises, the MMSJ provides them with additional sources of information in the form of guidelines for the application of the provisions of the SSW normative acts - the Sectoral Plan of the MMSJ.

Program 1.4: Insurance for work accidents and occupational diseases

As discussed above, work accidents and professional diseases can become an important burden for the employers, workers themselves and the society as whole.

In Romania, the system of insurance for work accidents and occupational diseases is a part of the social insurance system and it’s a system dedicated to mitigate the respective specific risks. This insurance activity is regulated by the Law nr.346/2002, which came into force at 01.01.2005.

National Pensions House (CNPP) is the competent authority in the field. The specific activity of insurance for work accidents and occupational diseases is organized at the level of General Directorate within CNNP and has territorial representation at county level. Current policy lines refer to further development of an efficient and transparent system as well as to achieving higher efficiency and transparency.

Program 1.4 is financed from the following sources:

1. State Social insurance budget (BASS)

2. Other sources (potentially

Objectives: Program 1.4 has two specific objectives and its results are to be measured by 2021 via the following result indicators:

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Specific Objective P1.4.1.: Focusing the occupational accidents and occupational diseases schemes towards better support for the beneficiaries(1.4.1_1) Diversification of benefits

Specific Objective P1.4.2.: Harmonizing the national legislation with the European Regulations as requested by the Electronic Exchange of Social Security Information (EESSI) (1.4.2_1) Level of employers’ conformity with the requirements of the EU regulationsSpecific Objective P1.4.3.: Incentives to employers to place prevention measures(1.4.3_1) Higher security and safety at work

Measures: Program 1.4 includes actions defined by the legislation and other relevant documentation. Corresponding budgets are detailed in the Annex 1, while the targets at measure level are presented in Annex 3.

(1.4.1) Focusing the occupational accidents and occupational diseases schemes towards better support for the beneficiaries

1.4.1.1 Higher accessibility for the beneficiaries

1.4.1.2 Simplify and streamline the procedure for contracting / settlement of medical services

1.4.1.3 Improving benefits to families of occupational accidents and occupational diseases victims

(1.4.2) Harmonizing the national legislation with the European Regulations as requested by the Electronic Exchange of Social Security Information (EESSI)

1.4.2.1 Ensuring the flow of European documents without disruptions

1.4.2.2 Reducing the response times of competent institutions according to the requirements of European regulations

(1.4.3) Incentives to employers to place prevention measures

1.4.3.1 Diversification of annual prevention programs structured on EC Directives / national legislation

1.4.3.2 Focus of the preventive activities towards the SMEs

1.4.3.3 Progressive development of information / communication campaigns addressed to the business environment

Success factors: An increase focus on prevention corroborates with adopting international best practices and a more efficient control of application of legal measures would allow reduction in spending.

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Strategic objective 2: An adequate and sustainable pension system

Social justice and equity mean, in the context of the pension system, that persons who retire must have the same rights (including the amount of money received during the retirement period), for the same level of contributions paid during the active life. The notion “contribution” is not to be taken strictly financially, but also in terms of opportunity costs. The lack of equity is perceived both at inter-generation level (due to successive modifications in the calculation of the pension point), and between different categories of pensioners (due to the special pension system) 35. Inter-generation equity is seen as an explicit objective of the current Governing Program.Gender equity means that all citizens, men of women have the right to the same contributive period. The different standard retirement for men and women is a discrimination appearing when “a person is automatically treated less favorably due to gender” - art. 2 par. 1 of the Directive 2002/73/CE.In the last Country Report for Romania, CE recommends equalizing the retirement age for men and women. This recommendation is not only a measure that supports social justice, but also a solution for sustainability, as extending the employment age for women means a longer contributive span.On the other hand, system readjustments – sometimes with adverse effects on equity – are generated by the need to maintain the living standard of all citizens (in the case of the elderly, this is measured through the degree of pension adequacy), corroborated with the need to respond to the loss of sustainability, both the cyclic one (related to the general evolution of the economy), and the long term one (mainly induced by the process of demographic changes). This will unavoidably lead to increasing pressure on budget resources. According to the EC’s ageing report for 2015, Romania ranks among the countries where the total increase in spending related to ageing (pensions, health and care, education) by 2060 is considered moderate, compared to the other member states. Regarding the pension system exclusively, the budget spending is even forecasted to reduce its share in the GDP, if reforms are properly continued and implemented.The pensions system in Romania is structured on three pillars, thus:

Pillar I – public pensions system, namely the state social insurance system and independent systems (professions, lawyers, military)

Pillar II – mandatory privately-administered pension funds Pillar III – optional pensions.

The public pension system is a redistribution–type of system, based on inter-generation solidarity, working according to the principle of contribution, meaning that social insurance funds are constituted based on contributions owed by natural persons and legal entities participating in the public system, social insurance rights being owed based on the paid social insurance contributions. The mandatory privately-administered pension system is also contribution-based and mandatory for certain categories of employees, but it is not based on inter-generation solidarity, but on efficiency of investments. Optional pensions are also based on the principle of efficiency of investments, but have a purely optional nature.The total number of pensioners at the end of December 2017 was 5,048,701, in decrease by 31,971 persons compared to the corresponding period of 2016. Of the total, 92.93% were state social insurance pensioners (4,691,652 persons) and 7.07% retired farmers (357,049 persons). At the end of December 2017, 7,042,180 persons participated in Pillar II private pension funds, with 235,626 more than at 12/31/2016. Most participants in the private pension scheme are those aged between

35 http://store.ectap.ro/articole/514_ro.pdf, and text quotes.

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25 and 45 (4,919,744)36. According to the Association for Private Pensions in Romania37 there were 446,131 participants in Pillar III private pension funds. In Romania, as in most EU countries, pension beneficiaries have a favorable situation in terms of poverty risk relative to the average population.

Figure 6. Poverty rate among the elderly (over 65 y)

2,010.0 2,010.0 2,010.0 2,010.0 2,010.0 2,010.0 2,010.0 2,010.010.0

12.0

14.0

16.0

18.0

20.0

22.0

14.6

20.1

14.1

18.1

At risk of poverty rate of older people EU28 RomaniaAt risk of poverty rate of pensioneers EU28 Romania

Data source: EUROSTAT

Severe material deprivation rate38 place Romanian pensioners much above the EU average, but close to the average of the population in general (19.4% in 2017). Material deprivation rate is an indicator of absolute poverty, being more appropriate than others for targeting certain groups.

Figure 7. Rate of severe material deprivation

2010 2011 2012 2013 2014 2015 2016 20170.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

6.77.3 7.4 7.0

6.35.6 5.8

5.2

32.4

29.228.5 28.4

26.5

21.522.5

20.6

EU28 Romania

Data source: EUROSTAT

36 Information retrieved from the MMJS Statistical Bulletin, http://www.mmuncii.ro/j33/images/buletin_statistic/pensii_an2017.pdf . 37 http://www.asfromania.ro 38 The material deprivation rate indicator expresses the lack of capacity of targeted individuals to acquire certain goods / services they need or want from the following categories: 1 - rent, real estate, utility payments, 2 – heating, 3 - unexpected expenses, 4 – holidays, 5 - TV set, 6 - washing machine, 7 - motor vehicles, 8 – phone. The rate of severe material deprivation is defined as the impossibility of acquiring four of these items.

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The latest EC Report on Employment and Social Evolutions (2017) is devoted to intergenerational equity and solidarity39. The report refers to changes in the structure of social protection expenditures that are not fully explained by demographic changes. At EU level, old-age pensions and healthcare represent a growing proportion of social spending, while family and unemployment benefits, which benefit younger age groups, tend to drop in share. Even though young adults and children from multigenerational households (indirectly) were co-beneficiaries of old-age pensions, especially in some southern European countries, this raises questions about intergenerational equity.40 Continuing current demographic trends may lead to more acute problems related to how national income is distributed across generations.

The report proposes a few lines of action:1. Judicious use of labor resources by: a) stimulating youth employment and encouraging their

participation in the labor market; and b) stimulating active aging (including increasing the retirement age and tax benefits for employers of elderly people).

2. Increasing labor productivity, which will become the main source of GDP growth, especially through technological innovation. In order to absorb technological change by older generations, continuous training programs must be supported. Investment in equipment and technology can also be fueled by private pension funds.

3. Stimulating fertility and the migration of young workers.

4. Identifying solutions for maximizing intergenerational equity through social dialogue.

To these the fight against undeclared work could be added. The MMJS has numerous actions to stimulate employment (see Objective 1), but also family policies to encourage the participation of young women in the labor market (see Objective 3). The role of social dialogue is included in Objective 4. However, as the latest EC Country Report for Romania keeps saying, equalizing the retirement age between women and men remains an unfulfilled priority. This is not just about hiring an additional potential labor supply, but reducing the gender gap in terms of employment will also reduce the current gender gap in pensions, which is one of the highest in the EU.

The balance between assuring sustainability, equity and adequacy of pensions remains in Romania’s case a social and political objective that is difficult to achieve.

This problem is shown by the comparison between two fundamental indicators in analyzing the pension adequacy degree41: aggregate replacement rate (ration of the average revenue from pensions for elderly persons aged 65-74 and average of revenue from employment of persons aged 50-59) used by the EC to assess the potential of inter-generation equity potential, and the retirement replacement rate (first pension related to the first wage) which assesses on individual level the capacity of the pension to maintain a proper living standard of a person who is retiring.

ILO and WB standards place optimal replacement rates between 45% and 60%. Depending on the calculation formula, in 2013 the retirement replacement rate was in Romania’s case between 35.6% and 40.9%42 and it is expected to be maintained by 2060 to roughly 38% (but only in the forecasted conditions of offsetting the effect of private pensions). On the other hand, at a level of 70% in 2016, the aggregate replacement rate is one of the highest in the EU, until not long ago only surpassed by Luxembourg, which, together with the increasing deficit of the public pensions system, determined the EC to raise alarm signals on sustainability risks. The source of these apparent gaps is a cohort

39 http://ec.europa.eu/social/main.jsp?&catId=89&furtherNews=yes&langId=en&newsId=2841 40 More fairness and higher efficiency of fiscal rules can also have an important contribution in stimulating intergenerational fairness and solidarity 41 http://eprints.lse.ac.uk/51270/1/__Libfile_repository_Content_Grech,%20AG_Grech_How_best_measure_2013.pdf 42 Data provided by the National Commission for Prognoses.

33

effect, also generated by a trend of wage decrease and another trend of increase in the asymmetry of how it is distributed.

Figure 8. The expected evolution of the pension system in Romania

2013 2020 2030 2040 2050 2060

0.00

0.20

0.40

0.60

0.80

1.00

1.20

0

10

20

30

40

50

60

24.128.8

32.7

41.8 41.7

51.8

Net deficit of the pension system (Contributions - Gross spending, % of GDP)

Net deficit of the public pension system (Contributions - Gross spending, % of GDP)

Old-age dependency rate (population >65 y/population 15-64 y, %)

Source: Analysis of the National Commission for Prognosis, 2016Note: these analyses do not reflect the measures included in the Governing Programme 2017-2020

Table 4. Financing of the programs from the Strategic Objective 2

Budget Breakdown by Programs for Strategic Objective 2

Total value, thou RON

Value/year, thou RON

2018 2019 2020 2021

Program 2.1. Adequacy and equity in the pension system 5.236 1.232 1.284 1.332 1.388

Program 2.2. Management of the pension system 361.658.718 73.522.653 87.681.549 99.735.485 100.719.030

Total OS 2 361.663.954 73.523.885 87.682.833 99.736.81

7 100.720.418

(The amounts identified for measures, budget programs and strategic objectives represent an estimation of the budgetary needs, which was conducted when the document was drawn up. The amounts will be revised when elaborating the budget proposals.)

34

35

Strategic objective 2: An adequate and sustainable pension system

Program 2.1: Adequacy and equity in the pension system

Measures of Program 2.1.Measure 2.1.1.1.: Increase of average gross pensionMeasure 2.1.1.2.: Increase of minimum social allowance for the pensionersMeasure 2.1.1.3.: Incentives to the development of the private pension systemMeasure 2.1.2.1.: Harmonisation of requirements and proper application of legal requirements for reducing the level of inequality and inconsistency in the pension system

Program 2.2: Management of the pension system

Measures of Program 2.2.Measure 2.2.1.1.: Appropriate management of the public pension systemMeasure 2.2.1.2.: Pensions and associated benefits

Strategic objective 2 aims at increasing the revenues of pensioners, while maintaining the sustainability of the pensions system and its fairness. This should be achieved through the implementation of the following programs.

Program 2.1: Adequacy and equity in the pension system

Motivation: The risk of poverty among pensioners over 65 years old in Romania is estimated by EUROSTAT at 22.3% in 2015 and by 2017 (inclusively), 6pp above the European average (16% in 2016). Among EU countries, Romania thus occupies the position 18/28 in the descending order of this indicator. Pensioners are not among the population categories that are considered as being at major risk, but their risk of poverty has been continuously increasing since 2011.

Pensions are calculated using a point-based formula, by multiplying the annual average number of points accumulated by an employee with the value of a pension point. Since 2013, the value of the pension point must be increased annually by 100% of the average annual inflation rate, according to the Pension Law, to which 50% of the real increase of the achieved gross medium wage is added.

Both in 2015 and in 2016, by way of derogation, a higher percentage than the one that would result from this calculation was implemented. The Governing Program 2017-2020 deviates from this principle and proposes concrete values of the evolution of the medium pension. Some other initiatives in this program are expected to lead to an increase in the net state pension and decrease in the amplitude of distribution. Also, the aim is to create proper conditions for the development of the private pensions system, and also to create the legal framework required to pay the pensions owed to the participants to the private pensions systems.

The policy in the field of pensions, which includes not only the level of the pension point, but also all the measures meant to insure equity and sustainability, is developed by the MMJS through the Department of Social Insurance, with the consultation of CNPP and ASF and it is implemented by CNPP.Law no. 263/2010 on the unitary pension system, as amended and supplemented, establishes in art. 53 par. 1 a standard retirement age of 63 years for women and 65 years for men. For men, the 65-

36

Average replacement rate total/public scheme. Target: 2020: 36.6/36.7%

Impacts

(2.1.1) A decent life for pensioners: Material deprivation rate among pensioners. Target 2021: 14%(2.1.2) Complying with the principles of equity: Gender gap in average replacement rate. Target 2021: 3%(2.2.1) A stable and efficient system for the citizens: Coverage of net payments through contributions. Target 2021: 80%

Program results

year standard age limit was reached on January 1, 2015, while for women the 63-year-old standard age limits will be gradually reached over time by 2030.In 2017, the government partly reverted to the pension system reform in 2008, which introduced the multi-pillar pension system by reducing Pillar II contributions far below the planned level, i.e. 3.75% of the gross wage versus 6%, as was initially foreseen. The 2018 EC Country Report on Romania states that this will reduce the short-term fiscal deficit in the short term, as the second pillar of the pension system is outside the public administration sector. However, the budgetary gain would fade away in the long run, as redirected social contributions from the second pillar would be accompanied by the obligation to pay old-age pensions in the future. In addition, this change will result in less diversified pensions and could also have negative consequences on the development of capital markets.

Program 2.1 is financed from the following sources:

1. MMJS budget2. State Social insurance budget (BASS)

Objectives: Program 2.1 has two specific objectives and its results are to be measured by 2020 via the following result indicators:Specific Objective P2.1.1: A decent life for pensioners(2.1.1_1) Material deprivation rate among pensionersSpecific Objective P2.1.2: Complying with the principles of equity(2.1.2_1) Gender gap in average replacement rate

Measures: Program 2.1 includes actions planned by relevant sectorial strategies and will focus at the level of measure on those activities prioritized by the Governing Program 2017-2020. The effects of Program 2.1 will be supported and amplified by fiscal measures in favor of pensioners, namely: from 1 January 2017, income tax 0 for pensions less than or equal to 2,000 lei per month; from 1 January 2018, 10% tax for pensions over 2,000 lei per month (calculated at sums over 2,000 lei); starting with the first quarter of 2017, the elimination of the social health insurance contribution for all pensioners, regardless of the level of the pension. The social health insurance contribution is covered by the state budget.

Corresponding budgets are detailed in the Annex 1, while the targets at measure level are presented in Annex 3.

(2.1.1) A decent life for pensioners

2.1.1.1 Increase of average gross pension

2.1.1.2 Increase of minimum social allowance for the pensioners

2.1.1.3 Incentives to the development of the private pension system

(2.1.2) Complying with the principles of equity

2.1.2.1 Harmonisation of requirements and proper application of legal requirements for reducing the level of inequality and inconsistency in the pension system

Success factors: The main factor of success of these measures is being financed without generating an increase of inflation pressure. Not in the last run, the stability and coherence of the legislation could avoid situation of inequity and creates conditions for concentration on impact analysis and higher administrative efficiency. Very important in this respect is the modification of the Law 263/2010, for simplifying and correlation with other legal acts.

37

Box 2. List of normative acts regarding the non-contributory reparation rights and the service pensions (paid from the state budget)

Normative acts governing non-contributory reparation rights:1) Law no. 41/1991 on granting indemnities and allowances to invalids, war veterans and widows, 2) Law no. 49/1999 regarding IOVR pensions, 3) Law no. 44/1994 regarding war veterans, 4) Decree Law no. 118/1990 and 5) Law no. 189/2002, both regarding granting rights to persons persecuted due to political reasons instated by the dictatorship started as of March 6, 1945, as well as for persons deported abroad or taken as prisoners, 6) Law no. 309/2002 regarding the recognition and granting of rights to persons that performed the military service within the General Director for Labor Service during the period 1950-1961, 7) Law no. 341/2004 on granting certain rights to the martyr heroes and fighters that contributed to the victory of the Romanian revolution of December 1989, 8) Law no. 109/2005 regarding the establishment of the indemnity for freelance activity of interpreter artists or operational freelancers in Romania, 9) Law no. 8/2006 regarding the establishment of the indemnity for pensioners from the public pensions system, members of the unions of creators, legally established and recognized as legal persons of public utility, 10) Law no. 578/2004 on granting monthly aid to the surviving spouse, 11) Law no. 196/2009 on establishing the minimum guaranteed pensions.

Normative acts governing the service pension:12) Law no. 216/2015 on granting the service pension to the members of the diplomatic corps, 13) Law no. 215/2015 regarding the statute of parliamentary civil servants, 14) Law no. 83/2015 regarding the Statute of the civil professional aeronautic personnel in civil aviation, 15) Law no. 303/2004 regarding the Statute of judges and prosecutors, Law no. 47/1992 regarding the organization and operation of the Constitutional Court, 16) Law no. 130/2015 regarding the statute of the auxiliary specialized personnel of the courts and prosecutor’s offices attached to them, and of the personnel working within the National Institute of Forensic Expertise, 17) Law no. 7/2016 on the organization and operation of the Court of Accounts and 18) Decision of the Constitutional Court of Romania 297/2012, regarding the admission of the exception of non-constitutionality of provisions of art. 1 letter h) of the Law no. 119/2010 regarding the establishment of certain measures in the field of pensions and of art. 196 letter j) of the Law no. 263/2010 regarding the unitary public pensions system.

Program 2.2: Management of the pension system

Motivation: The framework solutions to the pension system sustainability problem are the following: stimulating the degree of employment and increasing the minimum wage43 (as long as no inflation effects are generated and excessive asymmetry in the wage curve is avoided), improving the collection rate for contributions, and implementing / extending / making efficient the systems of alternative and additional pensions (private and occupational pensions), as well as other saving instruments. 44

The strategy adopted by Romania in this budget programming period is to prioritize the degree of pension adequacy based on the expected increase in the number of tax payers and in the medium revenues, continuing the process of equalization of the retirement age between women and men and an improved administrative efficiency. A fundamental initiative is creating the occupational pensions system. Secondly, attention can also turn to solving aspects related to gender equity between occupational categories.

43 https://www.ce-re.ro/upload/Alternative%20si%20compromisuri%20%C3%AEn%20sistemul%20romanesc%20de%20pensii%20pentru%20urmatorii%2020%20de%20ani.pdf 44 http://www.tandfonline.com/doi/full/10.1080/1331677X.2016.1169705

38

Program 2.2 is implemented by CNPP, following the current legislation and the exiting strategies elaborated by or in collaboration with MMJS

Program 2.2 is financed from the following sources:

1. MMJS budget2. State Social Insurance Budget (BASS)

Objectives: Program 2.2 has one specific objective and its results are to be measured by 2021 via the following result indicators:

Specific Objective P2.2.1: A stable and efficient system for the citizens

(2.2.1_1) Coverage of net payments through contributions

Measures: Program 2.2 includes measures for system stability and payment of pensions.

(2.2.1) A stable and efficient system for the citizens

2.2.1.1 Appropriate management of the public pension system

2.2.1.2 Pensions and associated benefits

Success factors: Maintaining the sustainability of the pensions system crucially depends on reaching the objective related to a sustainable economic growth that generates jobs, especially regarding wage-paid employment. It is also up to the success of further implementing / developing the private pensions system. The National Commission for Prognoses estimated that, by 2060, the rate of coverage for private pensions will reach more than 75% and this without considering occupational pensions.

39

Strategic objective 3: Reducing the number of people at risk of poverty and social exclusion in the context of creating a network of social services integrated, complex and

well coordinated

Since 2008 and until the present day, at the European level, Romania and Bulgaria have ranked last in terms of poverty in an order that depends on the used indicator.

Figure 9. Population at risk of poverty and social exclusion (% )

2010 2011 2012 2013 2014 2015 2016 201715.0

20.0

25.0

30.0

35.0

40.0

45.0

23.824.3

24.8 24.6 24.423.8 23.5

41.540.9

43.2

41.9

40.3

37.4

38.8

35.5

EU28 Romania

Data source: EUROSTAT

For Romania, the marked reduction of the rate of population at risk of poverty and social exclusion in 2015 is owed to the reduction of persons at risk of social exclusion, while the population at risk of poverty has slightly increased. In 2017, however, the number of people at risk of poverty registered a very significant decrease of about 8%. If we consider as poverty threshold the equivalent of 60% of the medium revenue on national level (after social transfers), in 2017 there were in Romania 7.0 million persons at risk of poverty and social exclusion, i.e. more than 35.5% of the population, with nearly 700,000 less than in 2014. Of these, 4.637 million are at risk of poverty, meaning roughly 400,000 more than in the previous year.

But it is not the scale of poverty itself that constitutes a major problem, but its persistence and structure.

The nature of economic growth that is not redistributed towards the poor categories of the society risks affecting the long-term growth potential of the country and the social cohesion.

The differences between the urban and rural areas, as well as between the regions of the country, remain or are increasing, with the poverty rate and social exclusion rate in the rural area being practically constant and at a very high level from 2010 onwards.

40

Figure 10. At-risk-of-poverty or social exclusion rate by degree of urbanisation (%)

2010 2011 2012 2013 2014 2015 2016 201715.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

55.0

60.0

29.1 28.8

31.2

33.0

27.2

24.1 24.3

19.7

39.6

41.3

35.3

33.432.5

30.5

33.3

30.2

48.848.0

56.6

52.751.9

50.851.7

48.1

Cities Towns and suburbs Rural areas

Data source: EUROSTAT

Other statistical indicators show that, although fluctuating from one year to the next, poverty is generally persistent45. Progress in 2017, however, seems to define a positive trend rather than a cyclical fluctuation.

Figure 11. Other poverty indicators, 2010-2017 (%)

2010 2011 2012 2013 2014 2015 2016 201710.0

12.0

14.0

16.0

18.0

20.0

22.0

24.0

26.0

28.0

16.5

13.8

21.6

23.5

18.017.5

18.7

17.1

19.5 19.3

20.2

At-risk-of-poverty rate anchored at a fixed moment in time (2008)At risk of poverty rate (cut-off point: 60% of median equivalised income after social transfers)Persistent at-risk-of-poverty rate

Data source: EUROSTAT

With regard to the structure of the population at risk of poverty or social exclusion, almost 20% in 2017, i.e. over 1.3 million are children (under 16), and 12% over 65. The poverty risk and social exclusion rate among employed persons, which was of 26.6% in 2017, remains below the national average for the people of working age (34.1%). However, this rate varies a lot among occupied categories. If only 15% of employees are at risk of poverty and social exclusion, 62% of people in

45 http://www.mmuncii.ro/j33/images/Documente/Familie/2016/SF_BancaMondiala_RO_web.pdf

41

another type of employment (non-salaried) are at risk of poverty and social exclusion (see also the discussion on Strategic Objective 1). Adults in one-parent families have a much higher poverty risk.The rate of poverty risk is smaller among pensioners, 18.1% as opposed to 20.1% for the overall population above 65, but both rates have increased significantly in 2015 as opposed to 2014, when they stabilized (see also discussion from Strategic Objective 2). Close to 1 million Romanians with disabilities are at risk of poverty and 1.7 million in risk of poverty or social exclusion (2016). Children have a risk of poverty or social exclusion of 40.3%, and in 2017 they remain the most affected age category46. The risk of poverty or social exclusion among children is closely correlated with the level of parental education.Figure 12. At-risk-of-poverty or social exclusion rate by broad age groups and gender (%, 2016)

M M F F M M F F M M F F M M F F M M F F M M F F< 16 < 16 < 16 < 16 16-24 16-24 16-24 16-24 25-54 25-54 25-54 25-54 55-64 55-64 55-64 55-64 > 65 > 65 > 65 > 65 Total Total Total TotalEU Ro EU Ro EU Ro EU Ro EU Ro EU Ro EU Ro EU Ro EU Ro EU Ro EU Ro EU Ro

0.0

10.0

20.0

30.0

40.0

50.0

60.0

25.6

49.6

26.3

47.4

29.5

47.6

31.5

47.8

22.5

35.8

23.3

35.4

22.7

32.9

26.3

40.3

15.0

27.0

20.6

38.7

22.5

37.8

24.4

39.8

Data source: EUROSTAT

These structural characteristics emphasize the need to speed up the transition from granting social benefits, which have no direct action on the cycle of poverty in the family and in the community, to a system based on social services focused on assisting persons and their families for their active integration in society. The strategic objective 3 will refer to cross-cutting measures to integrate poor and vulnerable people, with a focus on children and people with disabilities.

Table 5. Financing of the programs from the Strategic Objective 3

Budget Breakdown by Programs for Strategic Objective 3

Total value, thou RON

Value/year, thou RON

2018 2019 2020 2021

Program 3.1. Child protection 764.346 2.218 194.136 140.481 427.512 Program 3.2. Social assistance benefits and social inspection 58.068.055 14.042.990 14.957.923 14.576.753 14.490.389

Program 3.3. Social services 409.868 78 308 160.902 121 907 48 751Program 3.4. Disability rights 313.998 13.713 123.112 108.645 68.528Program 3.5. Gender equality and fight against domestic violence 185.601 24.344 73.869 77.983 9.405

Total OS 3 59.741.868 14.161.572 15.509.941 15.025.769 15.044.586

(The amounts identified for measures, budget programs and strategic objectives represent an estimation of the budgetary needs, which was conducted when the document was drawn up. The amounts will be revised when elaborating the budget proposals.)

46 EUROSTAT data.

42

43

Strategic objective 3: Reducing the number of people at risk of poverty and social exclusion in the context of creating a network of social services integrated, complex and well coordinated

Program 3.1: Child protection

Measures of Program 3.1.Measure 3.1.1.1.: Establishment of at least one day-care service for each administrative-territorial unitMeasure 3.1.1.2.: Extension of the area in which the minimum services package is providedMeasure 3.1.1.3.: Higher quality of the social services targeting childrenMeasure 3.1.2.1.: Closing down the placement institutions from the child protection system operating in the structure established during 1997, and 2000 (classic placement centers), and providing the service through family-type foster houses and apartmentsMeasure 3.1.2.2.: Establishment of 8 regional centers specialized on assisting children with behavioral issues

Program 3.2: Social assistance benefits and social inspection

Measures of Program 3.2.Measure 3.2.1.1.: Benefits granted as support for low-income families (social aid/ heating utilities subsidies/family support allowance)Measure 3.2.1.2.: Benefits granted according to family support policies (child allowance/ child rearing benefit/maternity allowance/back-to-work bonus)Measure 3.2.1.3.: Disability benefitsMeasure 3.2.1.4.: Increased share of social benefits paid through the Minimum Social Insertion Income (VMI)Measure 3.2.1.5.: Ex-ante verification of benefits for low-income families, to reduce the number of non-eligible applications (social aid/ heating utilities subsidies/family allowance) Measure 3.2.1.6.: Ex-ante verification of benefits granted according to family support policies, to reduce the number of non-eligible applications (child allowance/ child rearing benefit/ maternity allowance/ back-to-work bonus)Measure 3.2.1.7.: Taking over the payment of the rights granted to persons with disabilities, in accordance with the provisions of GEO 51/2016, for the modification and completion of some normative actsMeasure 3.2.1.8.: Granting social benefits and access to social services through the new Social Assistance Data Management System (DIAMANT)Measure 3.2.2.1.: Strengthening the efficiency of the social inspection, by diversification of verification techniques (risk profiling, databases crosscheck, widening of the sample, better sampling etc.), targeting beneficiaries of social aid, heating utilities subsidies, child allowance, child rearing benefit, maternity allowance, back-to-work bonus as well as disability benefitsMeasure 3.2.2.2.: Efficient social inspection activity – unannounced inspectionsMeasure 3.2.2.3.: Carrying out controls aimed at verifying compliance with minimum quality standards by public and private social service providers in order to strengthen the capacity and effectiveness of the social inspection actMeasure 3.2.2.4.: Performing evaluations of social services against the minimum quality standards, for their licensingMeasure 3.2.2.5.: Strengthening the efficiency of the social inspection by verifications of the way in which public institutions ensure unrestricted access of disabled people

44

Strategic objective 3: Reducing the number of people at risk of poverty and social exclusion in the context of creating a network of social services integrated, complex and well coordinated

Program 3.3: Social services

Measures of Program 3.3.Measure 3.3.1.1.: Ensuring, maintaining, and improving the quality of the social servicesMeasure 3.3.1.2.: Improving the legal framework for services of identification and intervention at the level of local communities, given the drafted Regulatory Framework for social assistance services at village level and the revised Regulatory Framework at town, city and county levelMeasure 3.3.1.3.: Elaboration/revision of the cost and quality standards in the social services field Measure 3.3.1.4.: Development and implementation of a national program dedicated to the professional training of the staff in the field of social assistance and to hiring at least one social assistant for each administrative territorial unitMeasure 3.3.1.5.: Strengthening the capacity of the public social assistance services to provide social services by elaboration of instruments and methodological toolsMeasure 3.3.1.6.: Development of a national system of social inclusionMeasure 3.3.2.1.: Elaboration/revision of the legislation regarding social assistance for elderlyMeasure 3.3.2.2.: Elaboration of the cost standards for public retirement homes according to the occupants’ level of dependenceMeasure 3.3.2.3.: Supporting the public-private partnership. Development of the mixed social services market Measure 3.3.2.4.: Developing the network of public community service at home for dependent elderly people

Program 3.4: Disability rights

Measures of Program 3.4.Measure 3.4.1.1.: Introducing notions of accessibility and “universal design” into initial and continuous training programs for civil servants and professionals in the fields of: design and realization of the physical environment, access to the public transport system, communication, information and communication technologies and systemsMeasure 3.4.1.2.: Rising awareness on the role of accessibility, including at the community levelMeasure 3.4.1.3.: Professional training and informative workshops for the staff who interacts or is involved in the assistance and protection of people with disabilities, including from the NGOsMeasure 3.4.2.1.: Identification of locations in the communities appropriate for the development of the modern social support infrastructure; elaboration of the restructuring plan for the classical institutionMeasure 3.4.2.2.: Placement of people whose degree of disability allows them to life independently, have a social life and be employable to alternative family-type homes (sheltered houses)Measure 3.4.2.3.: Prevention of institutionalization and support of deinstitutionalization by setting up and/or diversifying the structures providing social servicesMeasure 3.4.2.4.: Establishing and monitoring of mobile teams for community intervention for people with disabilitiesMeasure 3.4.2.5.: NGO projects awarded according to the art. 99/Law 448/2006

Program 3.5: Gender equality and fight against domestic violence

Measures of Program 3.5.Measure 3.5.1.1.: Informing and rising awareness among pupils on gender discriminationMeasure 3.5.1.2.: Informing and rising awareness among public sector employees on gender discriminationMeasure 3.5.1.3.: Informing and rising awareness among general population on gender discriminationMeasure 3.5.1.4.: Financial support for training of employees from state institutions, and from public or private organizations on equal treatment between men and womenMeasure 3.5.1.5.: Events for rising awareness on the benefits of gender budgeting and on the fiscal facilities for the companies that provide day-care services to their employeesMeasure 3.5.1.6.: Informing and rising awareness among general population on domestic violence and its serious consequencesMeasure 3.5.1.7.: Informing and rising awareness among general population on legal framework protecting the victims of domestic violenceMeasure 3.5.1.8.: Organizing events to mark the International Day against Domestic Violence (November, 25) and the International Day of Equal Opportunities between women and men (8 of May)Measure 3.5.1.9.: Informing and rising awareness among pupils on gender discriminationMeasure 3.5.1.10.: Development of an integrated network of services dedicated to the victims and aggressorsMeasure 3.5.1.11.: Continuous training of experts: policemen, courts staff, employees of DGASPS/SPAS, probation officers, career counselors, medical staff, teaching staff, social assistants, in the field of fighting domestic violence

Strategic objective 3 aims at long-term reduction in the rate of poverty and social exclusion. This should be achieved through the implementation of the following programs.

Program 3.1: Child protection

Motivation: The demographic trends in the last two decades show a decrease in the number and share of children, emphasizing an increasing process of demographic ageing. But the problem of poverty among Romanian children is overwhelming. According to EUROSTAT, in 2017, 40.3% of children were at risk of poverty and social exclusion, this being the second highest rate at European level. 31.3% of Romanian children are at risk of poverty. The characteristics of the situation in Romania, which limits the impact of direct measures for children in poverty, refers to the high rate of intergenerational transmission of poverty and the correlation between child poverty and the level of education of parents. Thus, child protection policy must be correlated with the policy for combating poverty and for access to training and the labor market.

45

Relative at risk of poverty gap. Target 2021: 34%At risk of poverty rate among children. Target 2021: 33%

Impacts

(3.1.1) Improving children’s access to quality social services: Coverage of social services for children (aged 0-17 years). Target 2020: 1.5%(3.1.2) Observing the rights and promoting the social inclusion of children in vulnerable situations: Share of beneficiaries placed in classical (old type) residential centers - children. Target 2020: 0,047%(3.2.1) Unique data management system for payment of social benefits and for management of programs financed through the state budget: Share of benefits payments verified electronically in total number of payments. Target 2021: 90%(3.2.2) Reducing error and fraud in the social assistance system by rigorous inspection and verification of application of legal measures concerning granting of social benefits and provision of the social services: Share of fraudulent/erroneous social benefits payments in total social benefits payments. Target 2021: 4%(3.3.1) Strenghtening the national system of social assistance in view of insuring the access of all disadvantaged groups to quality social services, with a focus to developing the capacity of SPASs to provide the minimum package of integrated services at the level of each administrative territorial unit: Share of accredited public providers of social services in total public providers under the local authorities. . Target 2021: 80%(3.3.2) Increasing the access of the elderly to dedicated social services: Coverage of social services for elderly (aged over 65 years). . Target 2021: 3%(3.4.1) Promoting accessibility in all areas of life to ensure that persons with disabilities enjoy the fundamental human rights and freedoms; eliminating discrimination: Employees of public institutions trained/ informed on the need to ensure the accessibility of the physical, informational, and communicational environment. Target 2020: 30%(3.4.2) Gradual deinstitutionalization of people with disabilities placed in classical residential centers in stages, simultaneously with the development of community services: Deinstitutionalization of adults with disabilities and their transfer to shelter houses financed through POR. Target 2020: 35%(3.5.1) Reducing and preventing the cases of discrimination, harassment, and violence: Share of population aware of the existence of legal framework and the sanctions applicable in cases of discrimination, harassment, and violence. Target 2020: 85%

Program

results

Child protection takes place along a few major lines of action. In order to prevent the separation of the child from family, beginning with 1997, the following have been achieved: reforming the law framework in the field, decentralizing activities of child protection, restructuring and diversifying child protection institutions, development of family-type alternatives to residential-type protection and increasing the focus on policies to prevent child separation from the family. Further, the aim will be to assure the framework required for developing social services in relation to granting direct financial benefits and also for developing social services destined to support the upbringing and caretaking of children and teenagers in the family, at the same time facilitating the promotion of mechanisms to support parents in order to assure a balance between family and professional life. Adoption is the best solution to offer a permanent family to a child for whom no proper environment can be found to live in his/her family of origin.

These two lines of action, under the responsibility of the MMJS, respectively the ANPDCA, are supplemented by complex measures of improving access to education services (including the fight against dropping out of school) and health services, especially covered by the relevant ministries, in cooperation and consultation with the ANPDCA.

At the end of December 2017, there were 55,302 children in the special protection system, of which 18,197 children (32.90%) benefited from a special protection measure in residential services and 37,105 children (67.10%) benefited from a measure of special protection in family-type services. The significant decrease in the number of children in public and private residential services (from almost 60,000 in 2000) was the result of the deinstitutionalization policy for children.

Reducing children's entry into the special protection system would not have been possible without the development of parental prevention services (day centers, recovery centers, counseling centers, etc.). As of 1 January 2005, public social assistance services at the level of local councils are primarily responsible for their development. As of 31 December 2017 they provided services to 43.89% of the children entitled to receive them; 20.39% of the children were cared for by private accredited bodies, and 35.72% are beneficiaries of prevention services provided by the General Directorates for Social Assistance and Child Protection.47

As part of the monitoring of specific indicators of the European Social Rights Pillar, the EC puts Romania among the countries with a precarious, but improving situation with regard to children up to 3 years of age receiving formal care services. A child-care institution closure plan has been developed, and the child's interest has been set at the heart of this process. The plan will be applied to a first batch of 50 institutions and will promote tailored action for each child in the institutions concerned, primarily aiming at reintegrating children into their families. Current funding is not yet sufficient to achieve these objectives.

The legislation on the protection and promotion of children's rights, elaborated by the MMJS in cooperation with ANPDCA, is now aligned with the European and international requirements in this field. At the implementation level provided by the General Directorates for Social Assistance and Child Protection (DGASPC) and the Social Assistance Public Service (SPAS), there is a high heterogeneity of the organizational structures in the territory and of the working procedures used at their level, due primarily to the lack of the human resources and administrative capacity needed to fully implement the existing legislative framework.48

47 Information retrieved from the MMJS Statistical Bulletin, http://www.mmuncii.ro/j33/images/buletin_statistic/copil_an2017.pdf . 48 http://www.copii.ro/anpdca-content/uploads/2015/01/Anexa-1-Strategia-nationala-aprobata-de-Guvern.pdf

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The Governing Program lays a special emphasis on measures to lead to an improvement of educational performance, of skills and competences of all children and youth and to reducing school drop-out, including by introducing the Guaranteed Social Package for Education. Secondly, the aim is to support families with children by granting between 1,200 and 1,600 RON/year for every child who does not skip school, depending on parent revenues and the number of children and also by granting fiscal discounts. Health services will also be better directed towards children, with a focus on prevention. Integrated services provided by local administration will be a priority, with implementation during period 2017-2020. De-institutionalization and the transition towards community care is one of the measures comprised both in the National Strategy for the Protection and Promotion of Children’s Rights, in the strategy on social inclusion and poverty reduction and in the Governing Program 2017-2020 and the successful outcome of this process must be in close connection with the development and financing of services addressed to children separated from their families.

Program 3.1 is financed from the following sources:

1. MMJS budget2. POCU3. Other sources

Objectives: Program 3.1 has two specific objectives and their results are to be measured by 2021 via the following result indicators:

Specific Objective P3.1.1: Improving children’s access to quality social services(3.1.1_1) Coverage of social services for children (aged 0-17 years)

Specific Objective P3.1.2: Observing the rights and promoting the social inclusion of children in vulnerable situations(3.1.2_1) Share of beneficiaries placed in old type residential centers - children

Measures: Program 3.1 includes actions planned by relevant sectorial strategies and will focus at the level of measure on those activities prioritized by the Governing Program 2017-2020. Corresponding budgets are detailed in the Annex 1, while the targets at measure level are presented in Annex 3.

(3.1.1) Improving children’s access to quality social services

3.1.1.1 Establishment of at least one day-care service for each administrative-territorial unit

3.1.1.2 Extension of the area in which the minimum services package is provided

3.1.1.3 Higher quality of the social services targeting children

(3.1.2) Observing the rights and promoting the social inclusion of children in vulnerable situations

3.1.2.1 Closing down the placement institutions from the child protection system operating in the structure established during 1997, and 2000 (classic placement centers), and providing the service through family-type foster houses and apartments

3.1.2.2 Establishment of 8 regional centers specialized on assisting children with behavioral issues

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Success factors: Factors that would ensure the success of these programs are mainly related to the availability of necessary human resources, but also to a better cooperation between sectors or the authorities in implementing the existing legislative framework. The social protection system in Romania is still overly oriented towards the sizing of financial benefits and therefore it is required to additionally develop the social assistance in the family and community, with a focus on prevention. For this purpose, it is useful to stimulate the transfer of good practices in the field of services and policies for children.

Program 3.2: Social assistance benefits and social inspection

Motivation: The social assistance benefits, a component of the national social protection system, are financial redistribution measures for individuals or families who meet the eligibility conditions laid down by the law. The benefits of social assistance (both in money and in kind) must provide beneficiaries with a secure income, and therefore any reform of the system will need to strengthen and optimize this kind of support. Currently, social assistance in Romania has an important contribution to reducing the incidence of poverty.

ANPIS manages three main categories of social assistance benefits: 1) support to low-income families 2) family policies and 3) support for disabled people. The largest number of beneficiaries are those receiving child allowances, over 3.6 million people, a universal right granted to children. In 2017, the child allowance amount accounted for 32.9% of total social benefits payments. More than 700 thousand people with disabilities benefited from social benefits in 2017 and 234 thousand families are guaranteed minimum income.49 Funding for these benefits is provided by the Social Benefits Policy Directorate.

The social assistance system, as a component of the social protection system, contributes through its elements – the benefits of social assistance (financial transfers) and social services, to promoting, respecting and guaranteeing the beneficiaries' rights to an independent, fulfilled and dignified life, as well as to facilitating their participation in social, economic, political and cultural life, as an integral part of the social inclusion process.

The corresponding budget, administrated by the Ministry of Labor, Family, Social Protection and the Elderly for the field of social assistance has grown continuously since 2005 and the programs in this field have been revised on conditions of efficiency, effectiveness and economy.

Since 2010 until present day, two reforms left their mark onto this field, namely:

adopting the Strategy on the Reform in the field of Social Assistance in 2011, and

approving the National Strategy for Social Inclusion and Poverty Reduction 2015-2020 and the Action Plan of the Romanian Government through HG no. 383 of May 27 th 2015.

The Governing Program 2017-2020 focuses on a more accurate targeting of vulnerable groups and on promoting “active inclusion”, together with the development of an efficient monitoring and assessment system of social inclusion policies and of a national system of social inclusion indicators, including annual calculation of such indicators. The aim is also to integrate and correlate all databases in the field of social assistance and to create the "e-social assistance" system

The payment of social benefits is an important budgetary element and its control is fundamental to eliminate the risk of fraud and error. The control is conducted especially of benefits that have higher risk of fraud, like the Minimum Guaranteed Revenue, child allowance or the disability rights. The

49 Information retrieved from the MMJS Statistical Bulletin, http://www.mmuncii.ro/j33/images/buletin_statistic/asistenta_an2017.pdf .

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Anti-Poverty Strategy recommends developing a system of signaling fraud suspicion, strengthening the control capacity and publicly communicating the results of anti-fraud campaigns.

Concretely, the inspection activity refers to:

- thematic control, according to the MMJS plan

- unannounced controls to verify the way in which rights are granted and respected

- evaluation of the social services.

In 2015 most of the controls were thematic (95%), but the unannounced ones have the highest efficiency in identifying fraud (37%), followed by the ones requested by those requested by the Court of Auditors (22%). Consequently, ANEPIS aims at encouraging the citizens to report nonconformities in order to reduce gradually the practice of thematic controls.50

The policy in the field of social assistance is developed by the MMJS, especially in cooperation with MEN and MS and is implemented by ANPIS, in cooperation with local authorities. Social Inspection activity is performed by a dedicated direction in ANEPIS, and has representation at local level through the social inspectors.

Program 3.2 is financed from the following sources:

1. MMJS budget2. State Social insurance budget (BASS)

Beginning with 2011, social assistance costs have been integrally covered from the central budget, which had positive consequences both on distribution as well as on the administration. The rate of error and fraud declined from 25% in 2010, to 12% in 201451.

Objectives: Program 3.2 has two specific objectives and their results are to be measured by 2021 via the following result indicators:

Specific Objective P3.2.1: Unique data management system for payment of social benefits and for management of programs financed through the state budget

(3.2.1_1) Share of benefits payments verified electronically in total number of payments

Specific Objective P3.2.2: Reducing error and fraud in the social assistance system by rigorous inspection and verification of application of legal measures concerning granting of social benefits and provision of the social services

(3.2.2_1) Share of fraudulent/erroneous social benefits payments in total social benefits payments

Measures: Program 3.2 includes actions planned by relevant sectorial strategies, namely the Antipoverty Strategy and will focus at the level of measure on those activities prioritized by the Governing Program 2017-2020. Corresponding budgets are detailed in the Annex 1, while the targets at measure level are presented in Annex 3.

(3.2.1) Unique data management system for payment of social benefits and for management of programs financed through the state budget

3.2.1.1 Benefits granted as support for low-income families (social aid/ heating utilities subsidies)

3.2.1.2 Benefits granted according to family support policies (child allowance/ child rearing benefit/maternity allowance/back-to-work bonus)

50 Activity Report ANPIS, 2015.51 PSI 2014.

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3.2.1.3 Disability benefits

1. Disability benefits granted according to the Law 448/2006:

a. Monthly complementary personal budget for persons with severe, major or average disability

b. Monthly indemnity for adults with severe or major disability

c. Allowance for the caregiver of the visually impaired, with major disability

d. Monthly food allowance for children with HIV/AIDS

2. Monthly food allowance for HIV/AIDS patients granted according to the Law 584/2002.

3.2.1.4 Increased share of social benefits paid through the Minimum Social Insertion Income (VMI)

3.2.1.5 Ex-ante verification of benefits for low-income families, to reduce the number of non-eligible applications (social aid/ heating utilities subsidies/family allowance)

3.2.1.6 Ex-ante verification of benefits granted according to family support policies, to reduce the number of non-eligible applications (child allowance/ child rearing benefit/maternity allowance/back-to-work bonus )

3.2.1.7 Taking over the payment of the rights granted to persons with disabilities, in accordance with the provisions of GEO 51/2016, for the modification and completion of some normative acts

3.2.1.8 Granting social benefits and access to social services through the new Social Assistance Data Management System (DIAMANT)

(3.2.2) Reducing error and fraud in the social assistance system by rigorous inspection and verification of application of legal measures concerning granting of social benefits and provision of the social services

3.2.2.1 Strengthening the efficiency of the social inspection, by diversification of verification techniques (risk profiling, databases crosscheck, widening of the sample, better sampling etc.), targeting beneficiaries of social aid, heating utilities subsidies, child allowance, child rearing benefit, maternity allowance, back-to-work bonus as well as disability benefits

3.2.2.2 Efficient social inspection activity – unannounced inspections

3.2.2.3 Carrying out controls aimed at verifying compliance with minimum quality standards by public and private social service providers in order to strengthen the capacity and effectiveness of the social inspection act

3.2.2.4 Performing evaluations of social services against the minimum quality standards, for their licensing

3.2.2.5 Strengthening the capacity of the social inspection through verifications, so as to ensure unrestricted access of disabled people

Success factors: The main success factor related to social assistance is linked to the precise targeting of beneficiaries and reducing fraud through an advanced social inspection program. Introducing

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complex and personalized system like insertion / inclusion revenue required a precise and complex control of information, case by case, and so the quality of the computer system is fundamental.

Program 3.3: Social services

Motivation: Social services represent the activity or the set of activities conducted to answer social needs, as well as to special needs, individual, family or group needs, so as to overcome difficult situations, to prevent and fight against the risk of social exclusion, to promote social inclusion and to increase quality of life52. Financial poverty deepens vulnerabilities further, but only by granting social benefits current social problems cannot be eliminated, the benefits of social assistance and social services being a unitary package of correlated and complementary measures to social services. The fight against poverty and social exclusion entails approaching individual needs from the perspective of life cycles, in family and community context. This cannot be achieved without a complex network of social services which is well coordinated and integrated in order to combat Romania's most persistent social problems, like precarious nutrition of children, child neglect and abuse, early school drop-outs and poor development of early child education programs. These problems can also include youth unemployment, insufficient primary and preventive medical services, small number of social houses and the lack of supporting services meant to answer various needs (like disabilities, drug addiction and alcohol addiction, domestic violence, the lack of shelter and the needs of former convicts).

There is already a wide spectrum of policies, programs and sector interventions aiming to reduce poverty and social exclusion and the experience and instruments required to identify persons and areas affected by poverty have been improved in the last years. The key missing ingredient is the coordination of these policies, programs and interventions in order to render social interventions efficient, providing the population with access to employment, financial support and services.

This section only refers to the social services in the social assistance system, but consideration must also be given to the other types of services as well (like those related to employment, education, health, justice and housing).

Accredited public and private providers can provide social services to citizens only if they are authorized / licensed by MMJS, ANPDCA, ANES and ANPD. In December 2016 there were 2550 licensed social services, of which 1396 were 1696 at the end of the year) and 1154 private, and 2947 licensed suppliers.53

The current policy lines, as defined by both the Anti-Poverty Strategy and the Governance Program, relate to: a) changing the focus from supporting the person to family support, b) the transition to active inclusion, which combines integration policies on the labor market with sufficient income and with the development of a social services system, and c) the development of an effective system for monitoring and evaluating social inclusion policies.

In terms of the attributions of the MMJS as the central public authority that elaborates the social assistance policy and promotes the rights of the family, the child, the elderly, the disabled and any other persons in need during 2017-2020, it is to be elaborated and / or revised normative acts in the field of social assistance, namely: amending and completing the Law no. 17/2000 on social assistance for the elderly, including the introduction of the dependency benefit according to the European models, and amending and supplementing the Law on social assistance no. 292/2011 to review/ create the legislative framework for the implementation of the above-mentioned measures of the Governance Program 2017-2020.

Program 3.3 is financed from the following sources:

52 Social assistance Law no. 292/2011.53 https://harta-furnizori.mmuncii.ro/

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1. MMJS budget2. Social insurance budget (BASS)

Objectives: Program 3.3 has two specific objectives and its results are to be measured by 2021 via the following program indicators:

Specific Objective P3.3.1: Strengthening the national system of social assistance in view of insuring the access of all disadvantaged groups to quality social services, with a focus to developing the capacity of SPASs to provide the minimum package of integrated services at the level of each administrative territorial unit

(3.3.1_1) Share of accredited public providers of social services in total public providers under the local authorities

Specific Objective P3.3.2: Increasing the access of the elderly to dedicated social services

(3.3.2_1) Coverage of social services for elderly

Measures: Program 3.3 includes actions planned by relevant sectorial strategies and will focus at the level of measure on those activities prioritized by the Governing Program 2017-2020. Corresponding budgets are detailed in the Annex 1, while the targets at measure level are presented in Annex 3.

(3.3.1) Strengthening the national system of social assistance in view of insuring the access of all disadvantaged groups to quality social services, with a focus to developing the capacity of SPASs to provide the minimum package of integrated services at the level of each administrative territorial unit

3.3.1.1 Ensuring, maintaining, and improving the quality of the social services

3.3.1.2 Improving the legal framework for services of identification and intervention at the level of local communities, given the drafted Regulatory Framework for social assistance services at village level and the revised Regulatory Framework at town, city and county level

3.3.1.3 Elaboration/revision of the cost and quality standards in the social services field

3.3.1.4 Development and implementation of a national program dedicated to the professional training of the staff in the field of social assistance and to hiring at least one social assistant for each administrative territorial unit

3.3.1.5 Strengthening the capacity of the public social assistance services to provide social services by elaboration of instruments and methodological tools

3.3.1.6 Development of a national system of social inclusion

(3.3.2) Increasing the access of the elderly to dedicated social services

3.3.2.1 Elaboration/revision of the legislation regarding social assistance for elderly

3.3.2.2 Elaboration of the cost standards for public retirement homes according to the occupants’ level of dependence

3.3.2.3 Supporting the public-private partnership. Development of the mixed social services market

3.3.2.4 Developing the network of public community service at home for dependent elderly people

Success factors: For the functional success of social services, it is required to have a coordinated approach in terms of implementation of policies, programs and interventions destined to the poor

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and vulnerable population, as well as to marginalized areas. It is also required to improve the capacity to correctly asses the needs at any level and to harmonize and align various programs and investments with the aid of well-trained social workers with competence both at individual and community level. In implementing interventions, it is important to tackle challenges both related to supply and demand. In poor and marginalized communities from the rural or urban sector, but also among Roma and non-Roma population, providing new infrastructure or services does not mean that they will be used.54

Program 3.4: Disability rights

Motivation: As of December 31, 2017, the total number of disabled persons communicated to the National Authority for Disabled Persons within the Ministry of Labor and Social Justice through the General Directorates for Social Assistance and Child Protection at county and local level (including Bucharest municipality), was 797,104 persons (or 3.59% of the Romanian population). Of these, 97.74% (779,066 persons) are in family care and / or living independently (non-institutionalized) and 2.26% (18,038 persons) are in social care residential institutions for (institutionalized) adults with disabilities, coordinated by the Ministry of Labor and Social Justice through the National Authority for Persons with Disabilities. The number of public social assistance institutions for adults with disabilities as of 31 December 2017 is 475 (compared to 448 in 31 December 2016), of which: 417 are residential (compared to 388 as of 31 December 2016) and 58 are non-residential (compared to the same number 60 on 31 December 2016). Approximately two-thirds (58.75%) of the public residential institutions for adults with disabilities are: a) care and assistance centers (28.30%), with 6,535 beneficiaries, and b) protected housing (30.46%), with 907 beneficiaries. They represent 41.26% of the total number of 18,038 persons in residential institutions. A significant number of beneficiaries are also present in the 74 neuropsychiatric recovery and rehabilitation centers, respectively 6,367 persons (35.30%). In 2017 there were 62,531 children with disabilities.55

Program 3.4 Disability Rights aims at creating and developing the necessary legal and institutional framework for the full and effective exercise of rights and fundamental freedoms by disabled persons. The two guiding principles of the support and integration policy for persons with disabilities are the following: 1) promoting access (including to education, training and health) and accessibility, and eliminating discrimination; and 2) de-institutionalizing persons with disabilities from outdated residential centers, in stages, simultaneously with the development of community services. These guidelines correspond to the political objectives of the Program 3.4 and reflect the philosophy and structure of the National Strategy “A barriers-free society for people with disabilities”, approved by Government Decision no. 655/2016. The strategy aims to ensure the implementation of the UN Convention on the Rights of Persons with Disabilities, adopted in New York by the United Nations General Assembly on December 13, 2006, signed by Romania on 26 September 2007 and ratified by Law no. 221/2010.The 2017-2020 Governing Program reiterates the importance of the two policy guidelines above. Additional measures include measures of labor market counseling, alternative training (sheltered workshops, vocational workshops, occupational therapy centers, etc.) for young people with disabilities and support for diversification of employment growth: supported employment, work at home, coaching services (see objective 1), a plan for the construction and efficiency of social housing for disadvantaged families (the homeless, those having as members persons with disabilities, etc.), support newscasts on the television by covering the costs of interpreters and of introducing dual presentations, increasing CNAS subsidies for rehabilitation services, assistive devices, assistive technologies, especially for children, developing social services and better regulations referring to

54 http://www.mmuncii.ro/j33/images/Documente/Familie/2016/SF_BancaMondiala_RO_web.pdf.55 Information retrieved from the MMJS Statistical Bulletin, http://www.mmuncii.ro/j33/images/buletin_statistic/dizabilitati_an2017.pdf .

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the role of the social assistant, improved support for families caring for persons with disabilities, developing adapted transport services and sanctioning entities which do not respect the access rights of persons with disabilities. Greater emphasis will be put on regular consultation of organizations representing people with disabilities.The policy in this sector is centered on implementation of the measures listed above and is developed by MMJS in collaboration with ANPD and a variety of institutional partners. The implementation is carried out by DGASPC / SPAS and ANPIS.Program 3.4 is financed from the following sources:

1. MMJS budget

Objectives: Program 3.4 has two specific objectives and their results are to be measured by 2021 via the following result indicators:

Specific Objective P3.4.1: Supporting the public-private partnership. Development of the mixed social services market

(3.4.1_1) Employees of public institutions trained/informed on the need to ensure the accessibility of the physical, informational, and communicational environment

Specific Objective P3.4.2: Gradual deinstitutionalization of people with disabilities placed in classical residential centers in stages, simultaneously with the development of community services

(3.4.2_1) Deinstitutionalization of adults with disabilities and their transfer to shelter houses financed through POR

Measures: Program 3.4 includes actions planned by relevant sectorial strategies and will focus at the level of measure on those activities prioritized by the Governing Program 2017-2020. Corresponding budgets are detailed in the Annex 1, while the targets at measure level are presented in Annex 3.

(3.4.1) Supporting the public-private partnership. Development of the mixed social services market

3.4.1.1 Introducing notions of accessibility and “universal design” into initial and continuous training programs for civil servants and professionals in the fields of: design and realization of the physical environment, access to the public transport system, communication, information and communication technologies and systems

3.4.1.2 Raising awareness on the role of accessibility, including at the community level

3.4.1.3 Professional training and informative workshops for the staff who interacts or is involved in the assistance and protection of people with disabilities, including from the NGOs

(3.4.2) Gradual deinstitutionalization of people with disabilities placed in classical residential centers in stages, simultaneously with the development of community services

3.4.2.1 Identification of locations in the communities appropriate for the development of the modern social support infrastructure; elaboration of the restructuring plan for the classical institution

3.4.2.2 Placement of people whose degree of disability allows them to life independently, have a social life and be employable to alternative family-type homes (sheltered houses)

3.4.2.3 Prevention of institutionalization and support of deinstitutionalization by setting up and/or diversifying the structures providing social services

3.4.2.4 Establishing and monitoring of mobile teams for community intervention for people with

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disabilities

3.4.2.5 NGO projects awarded according to the art. 99/Law 448/2006

Success factors: The successful implementation of accessibility measures depends on the effect of awareness raising sessions and on the ability to apply effective sanctions for non-compliance. The success factors essential for de-institutionalization are the efficient management of available funds and the establishment of a successful collaboration with the local administration.

Program 3.5: Gender equality and fight against domestic violence

Motivation: Equal opportunities and equal treatment between women and men is a fundamental principle of human rights, implemented at legislative level and in public policy. Recent studies in this area showed that the introduction of the gender perspective in public policies lead to significant increases in the economy and living standards of citizens. In recent years it has been observed that gender differences have diminished, but not enough to achieve de facto equality between women and men.56 Equality can be viewed from many perspectives. If at present there is no discrimination against women in education and health in Romania overall, considerable differences in access to employment are notable (see Objective 1).The EC 2018 Country Report on Romania puts forward the view that there are however some specific difficulties related to equal opportunities. Inequality of chances persists in education, health, access to employment and services and is prevalent especially in rural areas. This is also due to the precariousness of the social dialogue. The employment rate and the rate of activity among women are still well below the EU average, especially for older women, partly due to the lack of childcare centers (30), after-school structures and long-term care services that are available at affordable prices. The government has taken some steps to formalize the employment of caregivers and plans to fund 2,500 nurseries.The rate of poverty or social exclusion among women in Romania is estimated by EUROSTAT at 36.3% in 2017 (39.8% in 2016), well above the European average of 24.4% (2016). It deserves to be mentioned that the difference between women and men with regard to the risk of poverty or social exclusion has become very similar to the European average (2 pp, as compared to 1.9pp in the EU). Romania’s peculiarity is that this difference is due mostly to differences in employment, fueled at their turn by the family model and family-work balance, which are more detrimental to women in Romania than in other countries, and not by the differences in salaries. In Romania the share of women's representation in decision-making positions in government at both levels – central and local, has been increasing from 27% in 2003 to 56% in 2011 and dropped to 51% in 2012, in line with the downward trend in the European Union. In fact, the percentage of women occupying decision-making positions in central government is significantly above the overall average in the EU, which places our country on the top in the EU57.On the other hand, although the public opinion and the collective consciousness consider it certain that harassment is a manifest phenomenon, at this time there isn’t sufficient awareness of the rights and obligations related to the fight against this phenomenon at the level of both the victims and society in general.Therefore, given that the measures to promote gender equality in the labor market are covered by Objective 1, and various social measures are included in Objective 2, the measures covered by Program 3.5 target education, training and awareness. These correspond to the National Strategy for

56 http://anes.gov.ro/cs/groups/public/documents/document/mjaw/mda1/~edisp/1010115116200005220.pdf 57 ISP MMJS 2014,

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equality between women and men 2014-2017, approved by Government Decision 1050/2014, which is the main strategic document in this area.It should be noted that the Romanian experience in the field of gender equality legislation already includes well-structured institutional arrangements to implement this principle, growing civil society and an important academic segment58.Regarding domestic violence, this is one of the most serious problems facing the Romanian society. Recent data show that the contemporary Romanian society tends to regress in terms of building relations between women and men in the family towards a patriarchal model, influenced, unfortunately, by lower living standards and education and the negative social developments of Romanian transition. In this context, preventing domestic violence is a priority in terms of promoting patterns of relationships based on gender equality.The Convention on preventing and combating violence against women and domestic violence, adopted in Istanbul on May 11, 2011 and ratified in Romania by the Law 30/2016 led to the National Strategy for preventing and combating domestic violence 2013-2017, which is the main strategic document for combating violence.The main policy guidelines for combating domestic violence are: 1) education and training activities, including of the personnel having to deal with these cases; and 2) the development of an integrated network of services for the victims and aggressors. The Governing Program reiterates the importance of sending a clear signal considering the need to fight violence against women.

We would like to mention that the current version of the ISP did not include the conclusions and strategic directions formulated in the National Strategy on Gender Equality and Prevention of Domestic Violence for the period 2018-2021, elaborated by ANES, approved through the GD nr. 365/24.05.2018 and published in the Official Monitor, part I, nr. 465/06.06.2018. The new strategy will be included in the next version of the ISP (September 2018).

ANES is the main institution responsible with the policies related to discrimination and violence. The implementation of these policies is made in collaboration with ANOFM, IM, MEN, MS and local administration bodies. ANES is the main institution responsible for policies related to gender discrimination, gender equality and domestic violence. The implementation of these policies is done through collaboration with ANOFM, IM, MEN, MS, and the local administration bodies. ANES coordinates the territorial activity through the County Commissions for Equal Opportunities (COJES) and co-operates with the General Directorates for Social Assistance and Child Protection in the country to combat domestic violence.

Program 3.5 is financed from the following sources:1. MMJS budget2. POCU3. EEA and Norway Grants

Objectives: Program 3.5 has one specific objective and its results are to be measured by 2021 via the following result indicators:

58http://anes.gov.ro/cs/groups/public/documents/document/mjaw/mda1/~edisp/ 1010115116200005220.pdf.

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Specific Objective 3.5.1: Reducing and preventing the cases of discrimination, harassment, and violence

(3.5.1_1) Share of population aware of the existence of legal framework and the sanctions applicable in cases of discrimination, harassment, and violence

Measures: Program 3.5 Includes measures from the "National Strategy for Preventing and Combating the Domestic Violence for the Period 2013-2017". The allocated budgets are shown in Annex 1 and the indicators of the measures are presented in Annex 3.

(3.5.1) Reducing and preventing the cases of discrimination, harassment, and violence

3.5.1.1 Informing and rising awareness among pupils on gender discrimination

3.5.1.2 Informing and rising awareness among public sector employees on gender discrimination

3.5.1.3 Informing and rising awareness among general population on gender discrimination

3.5.1.4 Financial support for training of employees from state institutions, and from public or private organizations on equal treatment between men and women

3.5.1.5 Events for rising awareness on the benefits of gender budgeting and on the fiscal facilities for the companies that provide day-care services to their employees

3.5.1.6 Informing and rising awareness among general population on domestic violence and its serious consequences

3.5.1.7 Informing and rising awareness among general population on legal framework protecting the victims of domestic violence

3.5.1.8 Organizing events to mark the International Day against Domestic Violence (November, 25) and the International Day of Equal Opportunities between women and men (8 of May)

3.5.1.9 Informing and rising awareness among pupils on gender discrimination

3.5.1.10 Development of an integrated network of services dedicated to the victims and aggressors

3.5.1.11 Continuous training of experts: policemen, courts staff, employees of DGASPS/SPAS, probation officers, career counsellors, medical staff, teaching staff, social assistants, in the field of fighting domestic violence

Success factors: The main success factors of this program are the following: a) effective communication of the programs to the target audience; B) Engaging and empowering the implementing partners, especially local governments.

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Strategic Objective 4: Strengthening the social dialogue

Social dialogue is recognized as one of the main pillars of the European social model, a model based on economic performance, a high level of social protection, education and social dialogue. In Europe, the concept of dialogue between government representatives, employers and employees is generally accepted as part of good governance, although the modalities of implementation differ substantially from one country to another. The International Labor Organization (ILO) sees healthy industrial relations and effective social dialogue as tools to negotiate a level of fair pay, to promote continuous improvement of working conditions, but also to support peace and social justice.

Institutionalized social dialogue is currently carried out in two forms: tripartite and bipartite.

Institutionalized tripartite social dialogue takes place at different levels and takes the form of consultation and mutual information, as follows:

- nationally:

The tripartite social dialogue takes place within the institutionalized framework of the Tripartite National Council for Social Dialogue, a consultation structure of national interest, constituted at the level of the Romanian Government on the basis of Law no. 62/2011 on social dialogue.

- at sectoral level:

Tripartite social dialogue takes place within the institutionalized social dialogue commissions established at central level (in ministries and other central public institutions).

Social dialogue committees at the central level are composed of representatives of the ministry and representatives appointed by trade union confederations and employers representative at national level and represent the framework for information and consultation of the social partners on the normative initiatives promoted by the ministry and on other issues of interest for parts of the competence of the ministry or central public institution.

- at territorial level:

Tripartite social dialogue takes place within the social dialogue commissions established at the prefect's level.

These committees are composed of representatives of the local government, as well as a representative nominated by each of the representative national confederations and aim at informing and consulting the social partners about the decisions of local authorities or other issues of interest at local level. According to the 2018 Country Report on Romania (EC) and Eurofound59, these structures are used by the government in particular to provide information on the planned initiatives without a solid process of involvement and cooperation.

However, in 2016, according to the activity report of the Social Dialogue Directorate, the debates on normative acts / normative acts occupied only 6% of the agenda of the social dialogue commissions at territorial level, while the most important topics discussed are social aspects of general level such as: organization and functioning of the health system in Romania, health insurance, health cards (8%), education (7%), public health and safety / civil protection (5.5%), social benefits, social assistance (4%) and economic and business issues, such as agriculture (5.5%), business opportunities / business environment / investment (5%), employment (4.8%), identifying and combating work without legal forms, health and safety at work (4.6%). At the same time, subjects such as unemployment, salary law, amending the Law no. 62/2011, the Law on Social Dialogue, access /

59 https://www.eurofound.europa.eu/sites/default/files/ef_publication/field_ef_document/ef18028en.pdf

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absorption of structural funds, transport, tax legislation, consumer protection, environmental protection, local public services, safety and public order were also discussed by the members of the social dialogue commissions at the territorial level.

Institutionalized bipartite social dialogue takes place predominantly in collective bargaining, as well as in the process of solving collective labor disputes.

In accordance with the provisions of Law no. 62/2011 on social dialogue, collective bargaining takes place at level of activity sectors, unit groups and units with over 21 employees. The law establishes the parties' representativeness to collective bargaining, the effects and applicability of collective bargaining agreements, as well as the way to solve collective labor disputes, in compliance with international labor norms and conventions.

The 2011 Social Dialogue Reform, through the Law no. 62/2011 on Social Dialogue, abolished collective bargaining at the national level. The new legal framework decentralizes collective bargaining by increasing the importance of collective agreements at the unit level. In January 2016, the Law no. 1/2016 amended the Law on Social Dialogue (no. 62/2011), allowing the units where the union was not representative (less than 50%+1 of the company's employees) to conclude the collective agreement with the trade union federation to which the company’s union is affiliated.

The abolition of collective bargaining at the national level has left behind some 1.2 million employees working in 450,000 units with less than 21 employees60, because in these cases collective bargaining is not mandatory by law. Prior to the entry into force of the Law no. 62/2011, the law provided for a mechanism to extend collective agreements to companies that were not affiliated to the signatory federation. Under the 2011 legislation, such a mechanism no longer exists. However, according to Eurofound, 78% of employees were covered by collective labor agreements in 2013.

In 2016, collective agreements were not concluded at the sector level. In 2013 and 2014, two collective contracts were signed in the public sector: one for the health and veterinary sector, and one for the pre-university education sector. In 2016, the collective agreement for the health and veterinary sector was automatically extended until the beginning of 2017. However, none of the collective agreements was extended at sectoral level and their provisions apply only to the parties who signed the contracts.

Among the main obstacles towards a more effective social dialogue are the high levels of representativeness and the unclear definition of the sectors. The proposed amendments to the Law on Social Dialogue, which aim at improving the negotiation process and defining the economic sector, were discussed, but the negotiations are not advancing. The National Strategy for Social Dialogue61 also highlights the problems associated with the current legal framework regarding social dialogue, considering them as the main causes of the drastic reduction of the coverage of collective labor agreements. As a result, it is necessary to prioritize the change of the legislative framework that regulates the above-mentioned aspects in order to increase the number of employees covered by collective agreements and to ensure at the same time the prerequisites for the increase of the labor market inclusion.

Currently, most of the collective agreements are signed at the company level.

60 https://www.eurofound.europa.eu/ro/country/romania#collective-bargaining 61 http://dialogsocial.gov.ro/wp-content/uploads/2016/01/Strategia-Nationala-pentru-Dialog-Social.pdf

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Table 6. Number of collective labor agreements and additional acts concluded at unit level

2010 2011 2012 2013 2014 2015 2016 2017Number of collective

labor agreements

and additional

acts concluded at

unit level

7,718 7,473 8,783 8,726 9,747 8,702 9,366 13,359

Number of units

registered with the

Territorial Labor

Inspectorate

118,292(109,180 private

property)

268,990 (258,034 private

property)

272,015 (259,111 private

property)

272,074 (259,212 private

property)

272,695 (259,785 private

property)

41,976 (30,301 private

property)

42,645 (30,756 private

property)

34,729 (23,907 private

property)

Source: MMJS, Statistical Bulletin, Working Conditions, 2010-2016 editions, and data provided by the Social Dialogue Directorate

It is noteworthy that after 2015, the ratio between the number of units with over 21 employees and the number of collective agreements concluded fell strongly, from 31 in 2012 and 2013 to 2.6 in 2017. This means that, at the level of 2017, in the vast majority of units for which the law provides for collective bargaining, a collective agreement is reached.

According to art. 141 of Law 62/2011 of the social dialogue, the collective labor contract is concluded for a determined period, which cannot be shorter than 12 months and greater than 24 months. The parties may decide to prolong the application of the collective labor agreement only once, with a maximum of 12 months. If there is no collective agreement in a unit, the parties may agree to negotiate it at any time. The Social Dialogue Strategy argues for the identification of legislative solutions addressing a set of insufficiently regulated issues (e.g. how a company that is not a signatory to a collective agreement at group level can adhere to such a contract), thus correlating the legal texts and giving consistency to the regulated legal institutions, in order to avoid the numerous interpretations that appear in this field.

Romania is perceived as having one of the lowest levels of EU cooperation in employee-employer relations62. The capacity of the social partners is limited. However, a detailed analysis of the size and real impact of the identified problems is necessary in order to pinpoint the real factors and obstacles to the development of social dialogue.

The proportion of unionized workers has fallen from around 90% in 1990 to around 25% in 2013. It is worth noting, however, that the unionization rate has remained relatively constant since 2002, but has fallen since the 2011 reform.

62 http://www3.weforum.org/docs/GCR2017-2018/05FullReport/TheGlobalCompetitivenessReport2017%E2%80%932018.pdf .

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Figure 13. Unionization rate in Romania (2002-2013)

2002 2003 2006 2007 2008 2009 2010 2011 2012 201324.0

26.0

28.0

30.0

32.0

34.0

36.0

38.0

34.7 35.9 36.0 36.035.6

34.1

35.4

30.5

26.7

25.2

Unionization rate (%)

Data source: International Labour Organization (http://www.ilo.org/ilostat)

However, according to ILO assessments, considering the latest data available for EU countries covered by the institution's database (2013), Romania is at the middle in terms of the share of employees who are union members (unionization rate).

Figure 14. Unionization rates in selected EU countries

Danemarca (2

016)

Suedia (2015)

Finlanda (2016)

Malta (2

015)

Cipru (2014)

Italia

(2016)

Luxemburg (2

016)

Austria (2

016)

Slovenia (2

016)

Croația (2

016)

România (2013)

Irlanda (2

016)

Marea Britanie (2

016)

Grecia (2

016)

Olanda (2016)

Latvia (2

015)

Polonia (2016)

Slovacia

(2014)

Republica Cehă (2

016)

Ungaria (2

016)

Franța (2015)

Lituania (2

016)

Estonia (2

015)0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

67.267.064.6

51.447.7

34.432.026.926.925.825.224.423.5

18.617.312.612.112.010.5 8.5 7.9 7.7 4.5

Rata de unionizare (%)

Data source: International Labour Organization (http://www.ilo.org/ilostat)

The number of labor disputes is relatively low and fluctuates from one year to the next. As expected, most of the disputes are recorded in small and medium-sized companies, which also register the highest participation rates, while the few disputes in large companies, although registering lower participation rates, cover the highest number of participating employees.

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Table 7. Labor disputes and employee participation

2010 2011 2012 2013 2014 2015 2016Number of labor disputes 73 35 23 22 19 35 30Number of employees involved 61682 55647 10540 7678 7818 30236 14760Degree of participation 54% 46% 72% 92% 59% 53% 63%

Source: MMJS, Statistical Bulletin, Working Conditions, 2010-2016 editions

The most important issues discussed during bipartite collective bargaining in Romania are salaries and overtime pay. Aspects such as lifelong learning or gender equality are not as important. 63 The European Social Rights Pillar, cited by the 2018 Country Report on Romania (EC), 64 concludes that the persistence of inequality of opportunities in education, health, access to jobs and services, especially in rural areas, is also due to the precariousness of the social dialogue.

The social dialogue policy is developed, implemented and monitored by the MMJS through the Social Dialogue Directorate (during 2017 this structure was under the responsibility of the Ministry for Social Dialogue). Strategic Objective 4 is based on the National Social Dialogue Strategy (2015) 65, the Activity Report of the Social Dialogue Directorate (2016), the Recommendations of the 2018 Country Report on Romania (EC) and the priorities identified by the MMJS, through the Social Dialogue Directorate.

The Strategic Objective 4 aims to strengthen the social dialogue and the important role that social dialogue plays for the European social model by promoting competitiveness, equity, economic prosperity and social welfare. Under the Strategic Objective 4, two types of measures are included. Program 4.1 is designed to create a system of anticipation of labor disputes, with the objective of preventing their outbreak or facilitating their extinction with minimal economic losses. Program 4.2 is dedicated to processes that contribute to engaging both a larger share of the population and a larger number of areas and sectors in the social dialogue through strengthening the institutional capacity for social dialogue.

Table 8. Funding of programs under the Strategic Objective 4

Budget Breakdown by Programs for Strategic Objective 4

Total value, thou RON

Value/year, thou RON

2018 2019 2020 2021

Program 4.1. Preparing the anticipatory risk map 12.719 891 3.143 4.326 4.359

Program 4.2. Widening the framework for social dialogue and strengthening the social dialogue institutional capacity

8.211 2.079 1.967 2.044 2.121

Total SO 4 20.930 2.970 5.110 6.370 6.480

(The amounts identified for measures, budget programs and strategic objectives represent an estimation of the budgetary needs, which was conducted when the document was drawn up. The amounts will be revised when elaborating the budget proposals.)

63 https://www.eurofound.europa.eu/ro/country/romania#collective-bargaining . 64 https://ec.europa.eu/info/sites/info/files/2018-european-semester-country-report-romania-ro.pdf . 65 http://dialogsocial.gov.ro/wp-content/uploads/2016/01/Strategia-Nationala-pentru-Dialog-Social.pdf .

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Strategic Objective 4: Strengthening social dialogue

Program 4.1: Preparing the anticipatory risk map

Measures of Program 4.1:Measure 4.1.1.1. : Developing, with the involvement of social partners, a set of indicators and mechanisms for the early identification of social conflicts risks, as well as the related measures for the prevention of social conflicts, and the identification of data sourcesMeasure 4.1.1.2.: Establishing the necessary inter-institutional protocols for information exchange and collaboration Measure 4.1.1.3.: Elaboration and adoption of a procedure for decision-making and activation of early intervention procedures, and monitoring the results

Program 4.2:Widening the framework for social dialogue

and strengthening the social dialogue institutional capacity

Measures of Program 4.2:Measure 4.2.1.1.: Organizing and functioning of the Office for Mediation and Arbitration of Collective Labor DisputesMeasure 4.2.1.2.: Establishing and continuously updating databases on social partner organizations; creating databases on collective labor disputes and collective labor agreementsMeasure 4.2.1.3.: Diversification of information channels, media and communication actions; Elaboration and dissemination of the Social Dialogue Yearbook; Ensuring an integrated communication and information system for the social partnersMeasure 4.2.1.4.: Coordination of national dialogue, provision of technical support, reporting and monitoring, and other current activities

Share of mediated labor disputesTarget 2021: 10%Note: It should be noted that mediation of labor disputes is not currently achieved (only the conciliation activity is applied). Although the legal framework is in place, the corresponding institutional framework is not operational.

Impact

(4.1.1) Identification of dispute generation potential: Share of identified potential disputes, for which early intervention measures are decided. Target 2021: 20%(4.2.1) Increasing the efficiency of labor disputes' mediation and arbitrage: The share of labor disputes amortized in total labor disputes. Target 2021: 50%

Program Results

Program 4.1: Preparing the anticipatory risk map

Motivation: In order to increase the capacity to defuse the social tensions generated by collective labor conflicts (usually associated with major negative economic effects) it is necessary to know in advance the potential conflict-generating situations in the field of industrial relations.

The possibility of drawing such a “Map” is given by the analysis of the types of collective labor disputes that have occurred in the national economy in the last years, namely:

- Collective labor disputes relatively periodical in nature, usually those related to the negotiation of collective labor agreements;

- The so-called “systemic” collective labor disputes, generated by a fierce opposition of syndicate structures that systematically use collective labor conflicts as a means of pressure associated with a monopoly position in a particular field, in order to gain advantages in the negotiations;

- “Seasonal” labor conflicts, specific to the budget sector, which usually take place in the periods preceding the adoption of the state budget.

All these sources of information associated with the data provided by the mayoralties (which approve possible public protest actions, territorial social dialogue commissions, media information, as well as information from Central Authorities - MAI, Ministry of Economy, Ministry of Transport, etc.), as well as by other unspecified sources allow the development of an integrated procedure for the establishment of a national database that reflects the national conflict-generating risks. The use of all available information will be processed in a single national database, the integrator of which will be the Social Dialogue Directorate.

Being aware of these situations allows for an early conflict intervention, with a high probability of defusing them. The project requires the establishment of the following collaboration protocols: the Labor Inspectorate for the recording of labor disputes, the Gendarmerie for the announcement of street protests, the Economic and Social Council to attend the plenary sessions.

The project involves the development of a “platform”-type information system with real-time accessibility and highlighting the conflict-generating risk areas. Achieving this goal is a priority for the Social Dialogue Directorate.

Program 4.1 is funded from the following sources:

1. EU Funds2. (Potentially) other non-budgetary sources

Objectives: Program 4.1 has one specific objective and its results are to be measured by 2021 via the following result indicators:

Specific Objective P4.1.1: Identification of dispute generation potential in labor relations

(4.1.1_1) Share of identified potential disputes, for which early intervention measures are decided

Measures: Program 4.1 includes measures identified by the Social Dialogue Directorate for achieving its goal.

(4.1.1) Identification of dispute generation potential in labor relations

4.1.1.1 Developing, with the involvement of social partners, a set of indicators and mechanisms for the early identification of social conflicts risks, as well as the related measures for the prevention of social conflicts, and the identification of data sources

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4.1.1.2 Establishing the necessary inter-institutional protocols for information exchange and collaboration (Labor Inspection, Gendarmerie, Economic and Social Council)

4.1.1.3 Elaboration and adoption of a procedure for decision-making and activation of early intervention procedures, and monitoring the results

Note: The implementation of this program involves the existence of a dedicated IT platform. This is included in Program 5.2, along with other aspects related to the implementation of IT support for Social Dialogue, while complex analysis components are included in the Big-Data and complex analyzes system (Measure 3.2).

Success factors: The main success factors of this program are the following: a) the availability of external financing; b) Commitment and responsible involvement of the parties.

Program 4.2: Widening the framework for social dialogue and strengthening the social dialogue institutional capacity

Motivation: In its 2018 Country Report on Romania, the EC considers that the framework for collective bargaining is not fully conducive to a harmonious functioning of the labor relations system. Social dialogue is characterized by a low level of collective bargaining, especially at sector level, and by a reduced participation of trade unions and employers' organizations. At the time of its elaboration (2015), the National Social Dialogue Strategy mentioned that social dialogue was seen by the social partners as being formal, as not being given the appropriate importance, as an exercise that must be done only because of its law-binding character, but lacking the effort of being turned into a useful exercise. The partners widely consider that public authorities are concerned about social dialogue only to a small extent.66 This view is also shared by Eurofound in the analysis of the role of the social partners in the elaboration and monitoring of the National Reform Plan.67

The program is dedicated to those measures that respond to solving certain weaknesses and alleviating certain dysfunctions identified in the National Social Dialogue Strategy, namely:

- Understanding the concepts used in the social dialogue process differs from one partner to another and the objectives at the level of various social dialogue processes are not clear and known in a broad social sense, and social dialogue is not properly reflected;

- Insufficient connection to European social dialogue processes;- Very poor coverage of employees through collective labor agreements;- Tensioned labor relations, appearance of some forms of spontaneous protest;- The lack of a well-defined and adapted institutional and legislative framework constitutes a

major deficiency that could compromise attempts to optimize social dialogue;- Sectoral social dialogue is not fully functional;- The low effectiveness of social dialogue processes has generated mistrust and tension

among social partners;- There is no procedure for monitoring the social dialogue as a continuous process and as a

consequence: • There is no transparency regarding the social partners involved, the changes in their structure and functioning; • There is no information on the results of the social dialogue; • The current level of transparency does not compete for visible results / at national / sectoral level.

66 http://dialogsocial.gov.ro/wp-content/uploads/2016/01/Strategia-Nationala-pentru-Dialog-Social.pdf67 https://www.eurofound.europa.eu/sites/default/files/ef_publication/field_ef_document/ef18028en.pdf

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- There is no impact assessment acting as a benchmark for substantiating, amending and supplementing the legislative and institutional framework.

- The involvement of the social partners in employment policies (as reflected in the replies of trade union and employers' organizations that are representative at national level) takes place primarily in the elaboration stage and only to a much smaller extent in the implementation stage;

- In fact, the public policy-making process is covered, in almost all cases, by public institutions; most of the time, the social partners are only informed about the intention to revise or elaborate public policies; The ability of the social partners to make proposals that are reasoned and adapted to socio-economic realities is limited; The process of elaboration has therefore become an information process.

The program also reflects the principle according to which promoting a friendly solution for collective labor disputes, encouraging bipartite dialogue and stimulating collective bargaining are essential elements for developing a constructive social dialogue, which guarantees social peace.

Program 4.2 is funded from the following sources:

1. MMJS Budget2. Human Capital Operational Program3. (Potentially) other sources

Objectives: Program 4.2 has one specific objective and its results are to be measured by 2021 via the following result indicators:

Specific objective P4.2.1: Increasing the efficiency of the social dialogue process

(4.2.1_1) The share of amortized labor disputes

Measures: Program 4.2 includes measures identified within the National Social Dialogue Strategy and by the Social Dialogue Directorate in order to achieve the undertaken objectives. A special role will be played by the establishment of the Office for Mediation and Arbitration of Collective Labor Disputes.

Law no. 62/2011 on social dialogue provides for the organization and functioning of the Office for Mediation and Arbitration of Collective Disputes by MMJS in order to promote the amiable and speedy solution of labor disputes. In accordance with the Law no. 62/2011, the way of organizing and functioning of the Office for Mediation and Arbitration of Collective Labor Disputes is to be regulated by Government Decision. Within the Office of Mediation and Arbitration of Collective Labor Disputes, the body of mediators and the body of arbitrators of collective labor disputes will be established.

(4.2.1) Increasing the efficiency of the social dialogue process

4.2.1.1 Organizing and functioning of the Office for Mediation and Arbitration of Collective Labor Disputes

4.2.1.2 Establishing and continuously updating databases on social partner organizations; creating databases on collective labor disputes and collective labor agreements

4.2.1.3Diversification of information channels, media and communication actions; Elaboration and dissemination of the Social Dialogue Yearbook; Ensuring an integrated communication and information system for the social partners

4.2.1.4 Coordination of national dialogue, provision of technical support, reporting and monitoring, and other current activities

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Success factors: The main success factors of this program are as follows: a) the improvement of the social dialogue component of the ministries remains dependent on the committed and responsible involvement of the parties and the delimitation of the attributions for each social dialogue structure in order to make them more efficient; b) it is necessary to adopt new legislative measures, at least adopt the GD regarding the Office for Mediation and Arbitration of Collective Labor Disputes; c) the review of the existing legislative framework in order to remove some of the obstacles identified with respect to the establishment of trade union or employers' organizations, the representativeness criteria imposed on the social partners for negotiation, the way of negotiating and the scope of collective bargaining, the regulation of the right to trigger collective actions, the regulation of some institutions in relation to which the current rules have proved to be interpretative or contradictory. d) initiation of agreements / pacts on wage policy in general and on minimum wage in particular.

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Strategic objective 5: Strengthening the capacity of the Ministry of Labor and Social Justice (MMJS) to fulfill its functions for the elaboration and the implementation of the public

and regulatory policies in its field of activity

The institutional context governing the labour and social justice sector in Romania is complex and presents a notable volatility. The policies, respectively the legislation and the strategic framework, are elaborated within or under the coordination of the MMJS. Joint measures are taken especially in collaboration with the Ministry of Education, the Ministry of Health and with the local authorities.

In order to implement the adopted public policies, the ministry uses the resources of the national budget, the social insurance budget, its own income, the European Structural and Investment Funds, loans and grants from other international financial institutions. The funds allocated from the state budget for the MMJS, together with the expenses of the state social insurance budget (BASS), net of transfers from the budget, amounts to 80 billion RON or 9.7% of the GDP forecasted for the year 2017.

The paper "Analysis of the identification, planning and implementation of actions for reducing or eliminating the malfunctions within the ministries"68 identifies the following problems encountered by the MMJS during the analyzed period (2004-2015), namely:

- Malfunctions with regard to the substantiation of the draft annual budget- Low level of achievement of the final budget- Deficiencies regarding the recording in the accounting of some economic operations

carried out at the ministry level- Malfunctions in organizing and running its own preventive financial control- The internal control and audit standards provided by the legal framework have not been

fully implemented- Not performing a proper monitoring of capital expenditures and of the investment

program carried out at the level of the main credit officer- Unjustified maintenance of suspended service relations, related to public functions in the

organizational structure of the ministry- The high level of physical and moral wear and tear of IT equipment that has exceeded its

normal service life- Insufficient monitoring of the managerial performances at the national and county level on

the basis of performance indicators established at the level of the ministry, as they were not established and formalized by concluding a contract.

It is noteworthy that most of the Court of Accounts’ recommendations fall into three categories, namely: a) quality of economic and financial management (32.2% of total recommendations); b) accuracy and reality of data reflected in financial-accounting statements (28% of total recommendations); and c) compliance with the principles of legality, regularity, economy, efficiency and effectiveness in resource management and use (16.4% of total recommendations). Recommendations in the category b are present every year. The average annual implementation rate of the Court of Auditors' recommendations is estimated by the authors of the study at 67%.69

68 The paper was prepared by the Romanian Academy in collaboration with the Court of Accounts of Romania on the basis of individual studies and documents resulting from the ex-post audits carried out by the Court of Accounts of Romania during 2004-2015, the information in the State Budget Law, the Budget Implementation Accounts and the Institutional Strategic Plans.69 In order to determine the level of implementation of the recommendations of the Court of Accounts at the

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The lowest level of implementation of the Court of Accounts’ recommendations was registered for the recommendations in the category "Establishing, highlighting and tracking the revenue of the general consolidated budget, respectively the payment of tax liabilities", meaning that in this category there were the largest implementation difficulties.

The quoted paper identifies the main directions of action for increasing the ministry's performance and capacity to develop. These directions can be grouped into three categories as follows:

• Financial resources and administration / monitoring of their implementation (program budgeting and the possibility to follow the execution of each of them; to monitor the performance of the budgeted programs, by setting specific results indicators and their performance and monitoring, increasing the reliability of the budget of the ministry by substantiating it to a level closer to the actual value of payments to be made, increasing the attractiveness and use of resources from non-reimbursable funds);

• Personnel and decision-making capacity (improving decision-making capacity at the ministry level and implementing functional tools for internal managerial control; ensuring personnel needs and initiating training programs for employees with "sensitive" positions at the rapid pace of technological change / legislative);

• Information technology (equipping with computer techniques, computer applications and tools for protection and control of information systems according to the legal provisions in force, using for this purpose the programs financed by European funds, increasing the degree of integration of the computer applications used in the level of MMJS to those used by other ministries / public institutions to streamline data collection and use it in a standardized way to generate reports; to provide staffing needs and to initiate training programs for employees with "sensitive" positions, at the rapid pace of technological / legislative changes (e.g. use of ICT tools, access to European funds, public internal audit, application of financial and accounting legislation, etc.).

Taking this into account, the MMJS needs the tools and the resources to effectively manage these funds and to successfully implement the sectoral policies.

The priorities arising from the institutional challenges refer to: (i) the development of the capacity to formulate policies and strategies and their operationalization; (ii) the improvement of the provision of services with the help of information and communication technology; (iii) the development of an integrated approach in the field of social policies, including the development of social inclusion monitoring and evaluation systems and of all persons benefiting from services and/or receiving benefits; (iv) the development of a modern system for payment of the benefits; (v) the development of the mechanisms and the procedures for funding, coordinating and harmonizing among the funding mechanisms in various sectors (health, education, housing and employment); (vi) the development of a continuous vocational training system for the professionals who work in the labour and social justice sector.

This strategic objective is based on Program 5.1 and the Program 5.2 and proposes to create a public administration in the labour and social justice sector, calibrated to the needs of operating in the field, based on knowledge and information in order to: (i) perform its strategic function more

level of MMJS, the experts from the research team assigned to this ministry studied the documents resulting from the external audit missions (Audit or Control Reports, Court of Accounts’ Decisions, Follow-up Reports, Ministerial Addresses on how to implement the measures ordered by Decisions, etc.), on the basis of which each recommendation was identified with a score between 0 and 1 (0 for non-implemented recommendations, 1 for fully implemented recommendations and one intermediate score for partially implemented recommendations). During the period 2004-2015, 43.8% of the recommendations were implemented at the level of MMJS, 45.1% were partially implemented, and 5.8% were not implemented.

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efficiently (through better mechanisms for formulating the policies` framework) and (ii) deliver more efficient sector policies and services to the beneficiaries (through an improved institutional framework). The programs of this strategic objective are based on measures for the improvement of the administrative capacity of management and implementation of the sectoral policies with the purpose to obtain a better functional performance of the ministry and of the structures subordinated to the ministry. Among these included: (i) improving the roles, procedures and functional mechanisms for the establishment of the labour and social justice strategy and for the implementation of the ISP; (ii) solving the deficiency regarding human resources; (iii) solving the problems related to easy access to sectoral data and information; (iv) solving the problems related to the lack of certain tools for the evaluation of the performance of the public sector policies and the performance of the staff employed; (v) improving the coordination with other government institutions that manage a portfolio that impacts on the performance of the labour and social justice sector; (vi) greater transparency and involvement of the stakeholders in the public policy process.

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Strategic objective 5: Strengthening the capacity of the Ministry of Labor and Social Justice (MMJS) to fulfill its functions for the elaboration and the implementation of the public and regulatory policies in its field of activity

Program 5.1: Strengthening the administrative capacity of the institutions in the labour and social justice sector

Measures of Program 5.1.

Measure 5.1.1.1.: Revision of the organizational responsibilities and of the related procedures in order to allow an improved strategy formulation and an easy implementation of the ISPMeasure 5.1.1.2.: Efficient provision of licensing and accreditation activities specific to the labour and social justice sectorMeasure 5.1.1.3.: Ensuring a performing management at the level of the MMJS, in accordance with the existing objectives and with the legal regulations, in order to ensure that public funds are managed economically, efficiently and effectively by applying the internal/managerial control system standardsMeasure 5.1.2.1.: Strengthening of policy making capacity, planning, and management services in all relevant sectors, fully integrating all social innovation initiativesMeasure 5.1.2.2.: Strengthening of monitoring and evaluation systemsMeasure 5.1.2.3.: Consultation with beneficiaries and stakeholders involved in the labour and social justice sector, for the formulation and publication of public policiesMeasure 5.1.2.4.: Transparency in the decision-making process and the formulation of public policies and legal frameworkMeasure 5.1.3.1.: Human resources management and adaptation to the needs of the organizationMeasure 5.1.3.2.: Increasing the level of knowledge, understanding and application of the integrity standards by the employees and the beneficiaries of public services

Program 5.2: Information and Communication Technology (ICT) in the field of labor and social

protection; ICT governance and efficient cybersecurity; successful human resources policies for ICT professionals; maintenance, development

and upgrading of ICT systems

Measures of Program 5.2.Measure 5.2.1.1.: Reviewing and implementing ICT governance, cybersecurity policies, and human resources policies for ICT specialistsMeasure 5.2.2.1.: Primary and progressive maintenance for the communications infrastructure; primary infrastructure: office equipment and software; large infrastructure, data center hardware and basic software (operating systems, virtualization, databases etc.)Measure 5.2.2.2.: Modernization and development of cross-ministry systems for the entire social domain: portal, data exchange, data warehouse (big data), complex systems for reporting and analyticsMeasure 5.2.2.3.: Modernization and/or progressive maintenance of existing systems and developing systems / software applications (other than the reporting systems from Measure 3), which provide IT support for future social web services

The Strategic Objective 5 aims at long-term results in improving the public governance of the labour and social justice sectors. These are based on results generated by the programs presented below.

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Degree of compliance with the state budget:The difference between the planned budget on January 1 and the definitive rectified budget on December 31. Target: 2021: 100%The difference between the planned budget on January 1 and the budget’s execution on December 31. Target 2021: 100%

Impacts

(5.1.1) Improving the functional stability of MMJS and of institutions in its coordination, insuring a performant management of the public funds by applying standards of internal/managerial control: Number of annual changes in institutional structure. Target 2020: 1; Annual number of management deviations from internal control system standards. Target 2020: 16(5.1.2) Increasing the efficiency and transparency of the processes of elaboration, evaluation and implementation of quality public policies based on impact studies: Share of public policies/legal documents based on impact studies in total public policies / legal documents issued by MMJS. Target 2020: 20%(5.1.3) Increasing the professional quality of the human resources in the labour and social justice sector, of the degree of knowledge, understanding and application of the integrity standards: Share of MMJS employees graduating from training programs in the MMJS priority domains in total staff or number of training days per civil servant. Target 2020: 85%; Number of integrity incidents per 100/1,000 employees. Target 2020: 2 per thou(5.2.1) Strengthening ICT governance, adopting ICT standards and policies cross-ministry, and increasing professional quality of ICT professionals in the field of labor and social protection: Share of reviewed documents / policies / audited in total number planned. Target 2021: 100%; Percentage of ICT trainings and certifications (for ICT specialists) according to the annual plan. Target 2021: 75%; Percentage of trainings on ICT notions / elements (for non-ICT specialists) according to the annual plan. Target 2021: 60%(5.2.2) Improving the functional stability of ICT systems and equipment; modernizing and simplifying information flows through digitization and increasing interoperability / exchange of data cross-ministry; increasing the capacity of complex analysis cross-ministry; increasing transparency and public/open data: Percentage of implementation of life events in stage 5 (targetisation) of ICT sophistication. Target 2021: 50%; Percentage of cross-ministry interoperability and implementation, retrieving data on life events into the cross-ministry data store. Target 2021: 50%; Percentage of processes and procedures that will be technologically upgraded and integrated in the ministry and cross-ministry. Target 2021: 60% ; Percentage of IT infrastructure older than 8/7/6 years. Target 2021: 5% (older than 5y); Percentage of IT infrastructure and critical systems that undergo primary maintenance. Target 2021: 100%;

Program

results

Table 9. Financing of the programs from the Strategic Objective 5

Budget Breakdown by Programs for Strategic Objective 5

Total value, thou RON

Value/year, thou RON2018 2019 2020 2021

Program 5.1. Strengthening the administrative capacity of the institutions in the labour and social justice sector

111.736 29.732 28.327 27.040 26.637

Program 5.2. Information and Communication Technology (ICT) in the field of labor and social protection; ICT governance and efficient cybersecurity; successful human resources policies for ICT professionals; maintenance, development and upgrading of ICT systems

331.944 8.184 56.269 130.883 136.608

Total SO 5 443.679 37.916 84.596 157.923 163.245

(The amounts identified for measures, budget programs and strategic objectives represent an estimation of the budgetary needs, which was conducted when the document was drawn up. The amounts will be revised when elaborating the budget proposals.)

Program 5.1: Strengthening the administrative capacity of the institutions in the labour and social justice sector

Motivation: The provision of services in the labour and social justice system relies mainly on the existing human capital. The development of this human capital is the foundation for improving the quality of these services. Another important factor is the implementation of good practice tools in the management of this system, such as: public policies, performing management of human resources, strategic planning, monitoring and evaluation systems, efficient funding and reimbursement mechanisms.

Program 5.1 supports the measures for improving the management administrative capacity and implementation of sectoral policies in order to obtain the optimal operation of the ministry and its subordinated structures in the implementation of the Institutional Strategic Plan. Its successful fulfillment will be reflected in the stability of the institutional structure, in the public sectoral policies developed and successfully implemented, in the extent and the quality of using the national and European budgetary funds.

These results will be observed if within the process for the implementation of the measures, the beneficiaries and the stakeholders involved will request and will collaborate, and the decision makers and the specialists of the administration will act consistently to: i) reduce the frequency of changes in the functional structure; ii) reduce the turnover of specialized staff and of the de-professionalization; iii) develop coherent public policies based on certain procedures that are well-defined and adequately informed with statistical data, analyses and forecasts; iv) use the participatory and consultative methods in the elaboration of public policies; v) facilitate the access to information, informing and consulting the direct beneficiaries of the sectoral public policies; vi) open to partnerships and collaborations at local, national, European and international level; vii) computerizing the data and documents flows; viii) legally and efficiently use the ministry’s operational budget; and (ix) processes and instruments for periodic monitoring and evaluation, for reviewing the implementation of the strategic plan measures and for publishing the results.

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Objectives: Program 5.1 has three specific objectives and its results are to be measured by 2021 via the following result indicators:Specific Objective P5.1.1: Improving the functional stability of MMJS and of institutions in its coordination, insuring a performant management of the public funds by applying standards of internal/managerial control (5.1.1_1) Number of annual changes in institutional structure (5.1.1_2) Number of conforming standards

Specific Objective P5.1.2: Increasing the efficiency and transparency of the processes of elaboration, evaluation and implementation of quality public policies based on impact studies

(5.1.2_1) Share of public policies/legal documents approved by MMJS and based on impact studies in total public policies / legal documents issued by MMJS Specific Objective 5.1.3: Increasing the professional quality of the human resources in the labour and social justice sector, of the degree of knowledge, understanding and application of the integrity standards (5.1.3_1) Share of MMJS employees graduating from training programs in the MMJS priority domains; Number of integrity incidents. The program aims to ensure an effective leadership, strategic management and administrative support for the MMJS, by continuously improving the strategy and the organizational structure, in accordance with the applicable legislation and with the good practices. The program is also responsible for providing a comprehensive legal advice service, in order to ensure the coherence and the consistency of the regulatory framework, and in order to allow the Ministry to execute its mandate efficiently, within the limits of the law. The program also aims to ensure an effective and efficient management of the human resources, including planning and management of the workforce, and also the recruitment, transfer and training of the staff, depending on the needs of the MMJS activity. At the same time, by implementing the measures it is aimed to ensure a budgetary substantiation and planning in order to observe the principles of good financial management, of a healthy financial management, especially of the economy and the efficiency of expenses. This program provides support services for all the other programs.Measures: The main measures that will contribute to the achievement of the objectives of the program are presented hereinafter. The allocated budgets are shown in Annex 1, and the targets of the indicators related to the measures are presented in Annex 3:

(5.1.1) Improving the functional stability of MMJS and of institutions in its coordination, insuring a performant management of the public funds by applying standards of internal/managerial control

5.1.1.1 Revision of the organizational responsibilities and of the related procedures in order to allow an improved strategy formulation and an easy implementation of the ISP

5.1.1.2 Efficient provision of licensing and accreditation activities specific to the labour and social justice sector

5.1.1.3 Ensuring a performing management at the level of the MMJS, in accordance with the existing objectives and with the legal regulations, in order to ensure that public funds are managed economically, efficiently and effectively by applying the internal/ managerial control system standards

(5.1.2) Increasing the efficiency and transparency of the processes of elaboration, evaluation and implementation of quality public policies based on impact studies

5.1.2.1 Strengthening of policy making capacity, planning, and management services in all relevant sectors, fully integrating all social innovation initiative s

5.1.2.2 Strengthening of monitoring and evaluation systems

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5.1.2.3 Consultation with beneficiaries and stakeholders involved in the labour and social justice sector, for the formulation and publication of public policies

5.1.2.4 Transparency in the decision-making process and the formulation of public policies and legal framework

(5.1.3) Increasing the professional quality of the human resources in the labour and social justice sector, of the degree of knowledge, understanding and application of the integrity standards

5.1.3.1 Human resources management and adaptation to the needs of the organization

5.1.3.2 Increasing the level of knowledge, understanding and application of the integrity standards by the employees and the beneficiaries of public services

Success factors: The successful implementation of this program depends on a series of external factors, such as the progress of wider public administration reforms, including the revision of the current statute regarding the civil service. The main internal success factors of this program are the following: a) an effective and efficient communication of the specialists in the field of labour and social justice; b) performing an efficient management of the human resources; c) the use/implementation of the ICT solutions to support the decision; d) the development of the operational plan for the implementation of the ISP; e) the appointment of senior professionals with proven experience in the management of Budgetary Programs.

Program 5.2: Information and Communication Technology (ICT) in the field of labor and social protection; ICT governance and efficient cybersecurity; successful human resources policies for ICT professionals; maintenance, development and upgrading of ICT systems

Motivation: The provision of services in the labor, social protection and social justice system relies on, and in the future will have to rely more on, Information and Communication Technology (ICT) for simplification and de-bureaucratization and, implicitly, for improving the quality services offered by such a system, along with the increase of employee productivity in the sector. The program aims at ensuring the strengthening of ICT governance and, consequently, the continuous improvement of the ICT strategy and human resources policies in the field of ICT, in line with applicable legislation and good ICT practices. The program also aims at the modernization and/or development of electronic information management systems (IMS) in the field of labor and social protection, so that specific IMS systems (pensions, employment and unemployment, social assistance, disability and invalidity, child protection, labor inspection etc.) to become successful systems in the e-government ecosystem in Romania.The informatization of 2.0 e-government services centered on events in the lives of citizens and businesses in the field of activity of MMJS will allow the simplification and de-bureaucratization of business processes; it will also ensure the implementation of EU’s of once-only concepts related to document transmission, share and reuse at the administration level, while facilitating the transition to new ICT technologies (e.g. "government cloud").

Summarizing, the ICT-specific program will strategically allow: increasing the transparency of the administrative act; increasing access to digital public services; lowering public administration costs.

The list of life events (under the responsibility of MMJS) under the Digital Agenda - SNADR 2020 and their stage of sophistication in the process of automatic and proactive delivery of electronic services to citizens (there are 5 stages of services sophistication at European level: information, one-way interaction, two-way interaction, transaction and targetisation) is presented in the table below.

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Table 10. Life events under the responsibility of MMJS and related sophistication stages

Digital Agenda - Life event Institutions Sophistication stage

Job search ANOFM One-way interaction

Job loss ANOFM (IM but also ANPIS) One-way interaction

Work accidents and incapacity for work CNPP, IM Information

Retirement CNPP Two-way interaction

Registration of persons with disabilities in order to obtain social entitlements (monthly allowance / caregiver indemnity, as the case may be) or other related rights

ANPD, County Councils (DSGASPC), ANPIS Information

Social assistance benefits:1. Getting childcare allowance along with

the following2. Providing the incentive for the mother

to return to work3. Family Support Allowance4. Social security for minimum guaranteed

income5. • State child allowance

ANPIS Information

Adoptions County Councils (DSGASPC), ANPCDA Information

Concluding contracts IM Information

Under the proposed ICT measures, the institutional roles are the following:

o MMJS, as central authority in the social protection sector, will be responsible for the strategic approach and general aspects of ICT governance and will provide information on sector-specific and administrative processes (accounting, budgeting, logistics etc.) regarding the labor, social justice and protection field and related life events. MMJS will make decisions on the necessary changes to the specific and administrative processes in the sense of their informatization and will decide among the options on the services and social benefits that are considered to be sector-specific life events. Thus, measures 1 and 3 are in the direct responsibility of MMJS (IT department).

o The institutions subordinated to or under the authority of MMJS (ANPD, ANPDCA, ANPIS, CNPP, Labor Inspection) will be directly involved in specific sub-measures/projects for primary and progressive maintenance, development or modernization of the information management systems (IMS) in their area of competence (the IMS that are responsible for specific life events) and that are not under the centralized coordination of MMJS. Along with MMJS (and other institutional partners, e.g. MCSI), these institutions will ensure effective participation in (re)defining the administrative processes that will constitute the life or business event(s) they are responsible for, while ensuring the continuity and evolution of their own IT systems towards new processes.

In order to provide 2.0 e-government services centered on events in the life of citizens and businesses in the domain of MMJS, with a high-level electronic interaction and to interoperate the IT systems in the MMJS and the institutions that are subordinated to or under the authority of MMJS through the measures/sub-measures in the ISP, in what follows a functional architecture is proposed

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for implementation, along with the transition to a modern and efficient interoperability between electronic information management systems (IMS).

The following diagrams illustrate the functional architecture between IMSs in the MMJS and in the institutions subordinated to / under the authority of MMJS.

Diagram 1. Functional architecture of IMS at the level of MMJS and the institutions subordinated to / under the authority of MMJS

Diagram 2. Current interoperability, with one-on-one, spaghetti-type interactions

Diagram 3. The future interoperability to be implemented in the medium term through a gradual approach

Note: The above diagrams aim to highlight the importance of implementing a modern interoperability solution (data exchange) cross-ministry. These diagrams are not intended to represent all data exchanges within the MMJS and the institutions subordinated to / under the authority of MMJS.

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Pensions (CNPP)

Labor Inspection (IM)

Employment Unemployment

(ANOFM)

Social Assistance(ANPIS)

Ministry of Finances(Income – e.g. D112)

Ministry of Internal Affairs

(Civil Registry)

Ministry of Finances(Income – e.g. D112)

Ministry of Internal Affairs

(Civil Registry)

Social Assistance(ANPIS)

Employment Unemployment

(ANOFM)

Pensions (CNPP)

Labor Inspection (IM)

Interoperability - MMJS

Objectives: Program 5.2 has two specific objectives and its results are to be measured by 2021 via the following result indicators:

Specific Objective P5.2.1: Strengthening ICT governance, adopting ICT standards and policies cross-ministry, and increasing professional quality of ICT professionals in the field of labor and social protection

(5.2.1_1) Share of reviewed documents / policies / audited in total number planned. The following are the minimum of required documents: (i) ICT strategy, operational procedures (O.p.) (ii) O.p. Access and cybersecurity, (iii) O.p. Continuity (business continuity), (iv) O.p. Personal Data Protection (GDPR), (v) Human Resources and Wage Policies for ICT Specialists (6 documents / policies). These are adopted or under the process of adoption. Reviews and regular external audits once every 2-4 years will follow.

(5.2.1_2) Percentage of ICT trainings and certifications (for ICT specialists) according to the annual plan – there will be a full evaluation system and an annual ICT training and certification plan starting in 2020.

(5.2.1_3) Percentage of trainings on ICT notions / elements (for non-ICT specialists) according to the annual plan – there will be an annual ICT training plan for non-ICT specialists starting in 2020.

Table 11. Timeline for the Specific Objective 5.2.1

Timeline 2018 2019 2020 2021

Stage, development and adoption of strategic documents and policies specific to ICT governance cross-ministry

ICT Strategy Does not exist Adopted version up to December, 31, 2019

Amended version up to December, 31, 2021

Operational procedures• Access and cybersecurity• Continuity (business continuity)• Personal Data Protection (GDPR)

Do not exist Versions adopted preferably in the first quarter / semester

Annual review

Human resources policies and wage policies for ICT specialists

Do not exist Adopted version up to December, 31, 2019

Amended version up to December, 31, 2021

Indicator: Number of ICT governance documents / policies cross-ministry

Indicator evaluation

Transition to annual follow-up (review, adoption and standards certification)

Evaluation and annual training / certification plan for ICT specialists from MMJS and coordinated / subordinated bodies or bodies under the MMJS authority; conducting training and certifications

Evaluation and training / certification plan

Identify major training needs for 2020 cross-ministry

Annual evaluation and training and certification plan for 2021 (based on

Annual evaluation and training / certification plan for the year 2022

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adopted strategic documents and policies)

Indicator: Annual evaluation and ICT training and certification plan (for ICT specialists)

Indicator evaluation

Transition to annual follow-up

Training and certification for ICT specialists

Urgent: at least training for Personal Data Protection (GDPR); at least 2 representatives per institution

Training Semi-planned trainings cross-ministry

Training and certifications according to the annual plan

Indicator: Percentage of ICT trainings and certifications (for ICT specialists)

Indicator evaluation

Annual training plan on ICT notions / elements and training for the staff of MMJS and coordinated/subordinated bodies or bodies under the authority of MMJS (non-ICT specialists)

Training plan for non-ICT specialists

Identify major training needs for non-IT specialists for 2020 cross-ministry

Annual training plan for non-IT specialists for 2021 (based on adopted strategic documents and policies)

Training plan for the year 2022

Indicator: Training plan on ICT notions/elements (for non-ICT specialists)

Indicator evaluation

Transition to annual follow-up

Training on ICT notions/elements for non-ICT specialists

Semi-planned training

Training according to plan

Indicator: Trainings on ICT notions/elements for non-ICT specialists

Indicator evaluation

Specific Objective P5.2.2: Improving the functional stability of ICT systems and equipment; modernizing and simplifying information flows through digitization and increasing interoperability / exchange of data cross-ministry; increasing the capacity of complex analysis cross-ministry; increasing transparency and public/open data

(5.2.2_1) Percentage of implementation of life events in stage 5 (targetisation and pro-active) of ICT sophistication

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The domains of life events in the responsibility of MMJS are the following: (i) social assistance (social assistance benefits and social services), (ii) disability and invalidity, (iii) retirement, (iv) occupation (job search, job loss, work accidents and work incapacity (v) child protection and adoption, (vi) other (equal opportunities, social dialogue, etc.). The review of the list of life events by domains will be done in the ICT Strategy (Objective 5.2_1 and Measure 5.2.1.1). The 6 domains will be reviewed in 2020 and afterwards regular reviews will take place once every 2-4 years.

(5.2.2_2) Percentage of cross-ministry interoperability and implementation, retrieving data on life events into the cross-ministry data store

(5.2.2_3) Percentage of processes and procedures that will be technologically upgraded and integrated in the ministry and cross-ministry

The list of processes and procedures that will be technologically upgraded and integrated will be analyzed and detailed in the ICT Strategy (Objective 5.2a and Measure 5.2.1.1), while they will be standardized and simplified. This list will include processes / procedures related to life elements that are specific to the domain of the MMJS, but also the administrative ones (accounting, budget, and logistics).

The implementation of the “Once-Only” EU principle will be pursued - a document will be submitted once to the administration or will no longer be provided if the information already exists in the administration.

Technological modernization and integration will be done through evolving maintenance (projects) and / or implementation projects (development, modernization) of ICT systems

(5.2.2_4) Percentage of IT infrastructure older than 8/7/6 years

(5.2.2_5) Percentage of IT infrastructure and critical systems that undergo primary maintenance

The critical infrastructure includes hardware (servers, storage equipment, etc.), COTS products (operating systems, virtualization, database, web applications etc.), WAN network equipment and software, cybersecurity, etc., as well as software applications in the specific domains of MMJS: pensions, employment and unemployment, social assistance, disability and invalidity, labor inspection, child protection and rights, adoptions, equal opportunities, social dialogue, etc.)

Table 12. Timeline for the Specific Objective 5.2.2

Timeline 2018 2019 2020 2021

Life events and portal cross-MMJS

There is the current list from the Digital Agenda - SNADR 2020

Review the list simultaneously with the ICT Strategy

Reaching stage 5 of ICT sophistication (targetisation) for all life events that are now at stage 1 or 2

Indicator evaluation: Number of reviewed domains for life events under the responsibility of the MMJS

Indicator evaluation: Percentage of implementation of life events with stage 5 of ICT sophistication (targetisation and pro-active)

Database – data warehouse, cross-ministry interoperability

The ICT strategy will detail the needs and implementation

At least 50% of life events

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over time

Indicator evaluation: Percentage of cross-ministry interoperability and implementation; retrieving data on life events in the data warehouse – at least 50% in 2021

Primary infrastructure of MMJS and the institutions that are subordinated / coordinated / under the authority of MMJS

Inventory Inventory review in the ICT Strategy

Where appropriate, the annual inventory review (through the review of the ICT Strategy)

Annual evaluation of the indicator: The age of the primary infrastructure of the MMJS and the institutions that are subordinated / coordinated / under the authority of MMJS

Critical ICT infrastructure and systems

Inventory Inventory review in the ICT Strategy

Where appropriate, the annual inventory review (through the review of the ICT Strategy)

Annual evaluation of the indicator: Primary maintenance of critical ICT infrastructure and systems of the MMJS and subordinated/coordinated institutions

Processes and procedures that will be technologically upgraded and integrated at ministerial and cross-ministry level, including portal, data warehouse, and analyticsImplementing the EU "Once - Only" principle - a document will be provided once or will not be provided if it already exists

Progressive maintenance

Progressive maintenance and start implementation of complex strategic projectsmodernization and / or development (mostly with EU funds)

Implementation of a first set of complex strategic projects

Annual evaluation of the indicator: Percentage of processes and procedures technologically upgraded and integrated at ministerial and cross-ministry level

Measures: The main measures to help achieve the objectives of the Program 5.2 are presented below. The allocated budgets are shown in Annex 1, and the targets for the indicators related to the measures are presented in Annex 3:

(5.2.1) Strengthening ICT governance, adopting ICT standards and policies cross-ministry, and increasing professional quality of ICT professionals in the field of labor and social protection

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5.2.1.1 Reviewing and implementing ICT governance, cybersecurity policies, and human resources policies for ICT specialists

(5.2.2) Improving the functional stability of ICT systems and equipment; modernizing and simplifying information flows through digitization and increasing interoperability / exchange of data cross-ministry; increasing the capacity of complex analysis cross-ministry; increasing transparency and public/open data5.2.2.1 Primary and progressive maintenance for the communications infrastructure; primary

infrastructure: office equipment and software; large infrastructure, data center hardware and basic software (operating systems, virtualization, databases etc.)

5.2.2.2 Modernization and development of cross-ministry systems for the entire social domain: portal, data exchange, data warehouse (big data), complex systems for reporting and analytics

5.2.2.3 Modernization and/or progressive maintenance of existing systems and developing systems / software applications (other than the reporting systems from Measure 3), which provide IT support for future social web services

The proposed measures are detailed in a separate annex.

Success factors: The main success factors for achieving this ICT program are the following: Strategic approach in terms of reform, standardization and digitization, through which the

functional objectives in the employment and social justice (business objectives) are sustained and continually adapted to modern ICT technologies. This factor will also involve: effective and efficient communication (between specialists and decision-makers in labor and social justice sector and ICT specialists), encouragement of electronic public services (simultaneously with avoiding requesting presence at the counter) and the transmission of data from citizens and other organizations to the MMJS not more than once (the EU “once-only” principle). For this factor, it should be emphasized that ICT systems must be easy and adaptable primarily to external users (citizens, business, non-governmental organizations and other public institutions).

Elaboration, adoption and implementation of strategic documents on: ICT strategy (including reviewed life events, ICT architecture, interoperability issues, project priorities, etc.), operational policies (ICT systems, cybersecurity, continuity in operation, personal data protection) and human resources and wage policies for ICT specialists.

Ensuring an effective ICT management cross-ministry in order to improve ICT governance and ICT teamwork cross-ministry.

Improving the ICT function both in terms of quality by increasing the performance of ICT specialists (through management, payroll, motivation, evaluation and annual training plan, effective training and certification) and in terms of quantity by increasing the number of specialists in all required ICT fields (by employing new specialists or through outsourcing).

Continued improvement of the knowledge level about ICT notions/elements and computer systems of non-ICT specialists (users) (creating a digital culture cross-ministry).

Maintenance (sustainability) and/or effective and prioritized (timely) development and/or extension of ICT systems (including IT applications) in the labor and social justice sectors according to objective criteria. Efficiency will also be ensured through the implementation of the EU principle of sharing and reuse of IT resources, modularization, service-oriented architecture (SOA), open-source solutions, rapid deployment of new technologies etc. This factor will entail financial measures (allocations from the national budget, structural funding, etc.) in line with the identified needs and priorities and along with the functional directions and/or measures for the functioning of ICT systems with minimal risks.

Effective communication and continued adaptation to ICT governance, interoperability, enterprise architecture (ICT-related) at governmental level (cross-ministry) and national level.

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4. Framework for ISP implementation, monitoring and evaluation

To be relevant, an institutional strategic plan should associate public policies and financial planning processes. As a consequence, the Institutional Strategic Plan 2017-2020 for MMJS should support budget planning for each of the following years. It is important to note that although the budget contains spending projections for three years, it provides details of related activities and resources for only one year.

Responsibility: Implementation of the Strategic Plan begins with Parliament's approval of the state budget law. The PSI Working Group, through the MMJS Public Policy Unit and with the help of technical units, will prepare annual operational plans for the implementation of the Plan, which will serve as a basis for monitoring. This activity is extremely important because it allows senior management to identify and solve potential challenges in advance.

Monitoring and evaluation framework: A monitoring and evaluation framework is set out in Annexes 2 and 3, which presents indicators and targets for different levels of planning (see table below). Annex 1 includes an overview of financial planning for the 2017-2020 period. As far as possible and in order to avoid overloading the MMJS, the PSI monitoring framework has been designed to fully integrate into the Joint Monitoring and Evaluation Framework, which is mandatory for European programs in 2017-2020.

Data collection and management: An IT system for strategic planning and performance assessment was developed on the basis of the Institutional Strategic Plan architecture. The application will illustrate the key functions of the PSI and will allow assessment of progress in implementation at all levels of execution and management. The state of implementation compared to the planned levels of the indicators will be accessible to all stakeholders and citizens through an interface available to the general public.

Reporting: In determining the content and frequency of monitoring, it is important not to overburden the specialized departments of MMJS. Therefore, different categories of performance indicators require different reporting time intervals:

- Input and process / product indicators will be measured monthly, or at least quarterly;

- Immediate result indicators will be measured quarterly;

- Result indicators will be measured bi-annually;

- Impact indicators will be measured annually.

A chart of the ISP monitoring cycle is provided in the figure below:

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Ian. Apr. Jul. Oct.

ANNUAL ANALYSIS OF RESULTS: ALL INDICATORS

Trimester analysis: Process/Output and Input indicators Trimester analysis: Process/Output and Input indicators Trimester analysis: Process/Output and Input indicators Trimester analysis: Process/Output and Input indicators

BI-ANNUAL ANALYSIS OF RESULTS: RESULT, OUTPUT AND INPUT INDICATORS

Figure 15. Monitoring cycle for MMJS ISP 2017-2020

It is important to report to the general public on the state of affairs and the progress made in achieving the planned outcomes, according to the impact indicators and targets set. Although the annual progress reports are not currently available, it will be essential for them to be prepared and presented to the public by the MMJS in the future.

Evaluation: In addition to EU-funded programs subject to ex-ante, intermediate and ex-post evaluations, the MMJ has not developed a formal approach to ex-post evaluations of other programs and policies. In the future, this activity will provide important information to make changes regarding with respect to delivering programs and policies. These changes will not significantly affect the strategic plan.

It would be desirable to strengthen the periodic evaluation of the entire portfolio of programs that the MMJS manages and which are included in the PSI, and preferably synchronize with the timetable for evaluating the European programs. This activity could be outsourced to the same evaluators who will be working on the Human Capital Operational Program, thus creating synergies in the evaluation work, while having a holistic view of policy outcomes.

Updating: A complete strategic planning exercise will be carried out every four years. In the other years, the MMJS will, through the PSI working group, prepare an annual update to determine whether changes to the strategic plan are necessary. The update will consist of three activities:

- comparing the actual results of the previous year versus the planned ones based on the targets set in the strategic and operational plans;

- reviewing the internal and external environment to determine whether significant changes to the underlying assumptions are required; and

- adding an extra year to the plan.

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As its duration is less than three years in addition to the planning year, the updated Strategic Plan can continue to respond to the three-year budgetary requests and forecasts. Often, vision, strategic goals and program objectives do not change unless a major event, such as an unforeseen economic crisis, occurs. The update exercise should be completed by May 30th of each year, which provides time for the collection and analysis of the results obtained in the previous year.

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Year Setting new targets

2017 For 2021

2018 For 2022

2019 For 2023

5. Financial Resources

The viability of the 2017-20 ISP is determined by the availability of financial resources required for the implementation of the measures underneath each specific objective.

Despite the generous EU programmes envelope, securing adequate funding has remained a challenge to date when pursuing the institutional reforms. Certain relevant areas and services, either within the sector administration or under the portfolio of other government agencies remain under-funded.

Both for policy areas, as well as for pursuing institutional reform priorities, MMJS would be well served by a transition to program budgeting. This should be useful for achieving a better articulation between the general sector goals, corresponding action plans and the resources that need to be allocated.

Lastly, Romania needs to clearly identify and prioritize, by policy areas, an adequate balance between public and private resources that need to contribute to the development of the education sector.

A budget outline that summarizes the core strategic objectives and the main measures is presented in Annex 1.

Table 9 below illustrates the financial envelopes per year needed for the operationalization of the ISP over the 2018-21 period.

Table 13. Financial resources for operationalizing the 2018-21 ISP (thousand RON)

Year Total 2018 2019 2020 2021

Estimated sums 427.145.608 88.943.752 104.632.856 116.273.019 117.295.981

The financial resources have been classified into three main categories: (i) resources from the state budget for national policies and administrative expenses (99,5%), (ii) resources from the state budget for co-financing EU policies (0,07%) and (iii) resources from the EU budget (0,43%).

The 2017 budget and the 2016-18 Fiscal-Budgetary Strategy were taken into account when planning the state budget allocations for national policies and EU programmes co-financing. The established ceilings were taken into account both for the level of co-financing and for the other types of expenses - classified under the state budget category for national policies. The EUR - RON exchange rate used is the same one used to substantiate the 2016 budget.

The number of programs has increased significantly compared to the previous ISP. Despite its obvious complexity, this new ISP shows an increased consistency in terms of programs and facilitates the implementation and monitoring process.

Over 84% of the total resources allocated to the sector are directed towards the achievement of the Strategic objective 2 related to an adequate and sustainable pension system, while Strategic objective 3 related to reducing the number of people at risk of poverty and social exclusion has an allocation of over 14% of the total resources for the period 2018-2021. Strategic Objectives 2 and 3 cover about 98% of the total resources, while the other strategic objectives are allotted only 2% of the total resources.

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Table 14. Budgetary allocations for each Strategic Objective (2018-2021)

Strategic Objective 2018 2019 2020 2021

SO 1 1.217.409 1.350.376 1.346.140 1.361.252

SO 2 73.523.885 87.682.833 99.736.817 100.720.418

SO 3 14.161.572 15.509.941 15.025.769 15.044.586

SO 4 2.970 5.110 6.370 6.480

SO 5 37.916 84.596 157.923 163.245

(The amounts identified for measures, budget programs and strategic objectives represent an estimation of the budgetary needs, which was conducted when the document was drawn up. The amounts will be revised when elaborating the budget proposals.)

One important institutional challenge is the ability to implement the ISP, including through budget execution based on defined programs. From an organizational and managerial perspective, this represents the main challenge for the next period. Budget execution by programs will also bring important changes in the management of MMJS structures, namely the budget directorate.

87

Annex 1a: Objectives and budgetary programs for the period 2018-202170

Code Strategic Objective / Program Total Value thou. Lei

Budgetary credits - Total layout - thousand Lei

2018 2019 2020 2021

Total 427.145.608 88.943.752 104.632.856 116.273.019 117.295.981

SO 1

Increasing the employment rate of people aged 20-64, on an inclusive labor market, that would support competitive economic growth and lead to a reduction of in-work poverty and informal labor

5.275.177 1.217.409 1.350.376 1.346.140 1.361.252

P 1. Employment for all 1.870.292 426.094 458.043 487.623 498.532

P 1.2 Passive measures for the unemployed 1.914.560 509.330 482.826 461.202 461.202

P 1.3 Working conditions 877.426 156.977 259.198 228.524 232.727

P 1.4 Insurance for work accidents and occupational diseases 612.899 125.008 150.309 168.791 168.791

SO 2 An adequate and sustainable pension system 361.663.954 73.523.885 87.682.833 99.736.817 100.720.418

P 2.1 Adequacy and equity in the pension system 5.236 1.232 1.284 1.332 1.388

P 2.2 Management of the pension system 361.658.718 73.522.653 87.681.549 99.735.485 100.719.030

SO 3Reducing the number of people at risk of poverty and social exclusion in the context of creating a network of social services integrated, complex and well coordinated

59.741.868 14.161.572 15.509.941 15.025.769 15.044.586

70 The amounts identified for measures, budget programs and strategic objectives represent an estimation of the budgetary needs, which was conducted when the document was drawn up. The amounts will be revised when elaborating the budget proposals.

88

Code Strategic Objective / Program Total Value thou. Lei

Budgetary credits - Total layout - thousand Lei

2018 2019 2020 2021

P 3.1 Child protection 764.346 2.218 194.136 140.481 427.512

P 3.2 Social assistance benefits and social inspection 58.068.055 14.042.990 14.957.923 14.576.753 14.490.389

P 3.3 Social services 409.868 78 308 160.902 121 907 48 751

P 3.4 Disability rights 313.998 13.713 123.112 108.645 68.528

P 3.5. Gender equality and fight against domestic violence 185.601 24.344 73.869 77.983 9.405

SO 4 Strengthening social dialogue 20.930 2.970 5.110 6.370 6.480

P 4.1 Preparing the anticipatory risk map 12.719 891 3.143 4.326 4.359

P 4.2 Widening the framework for social dialogue and strengthening the social dialogue institutional capacity 8.211 2.079 1.967 2.044 2.121

SO 5

Strengthening the capacity of the Ministry of Labor and Social Justice (MMJS) to fulfill its functions for the elaboration and the implementation of the public and regulatory policies in its field of activity

443.679 37.916 84.596 157.923 163.245

P 5.1 Strengthening the administrative capacity of the institutions in the labour and social justice sector 111.736 29.732 28.327 27.040 26.637

P 5.2

Information and Communication Technology (ICT) in the field of labor and social protection; ICT governance and efficient cybersecurity; successful human resources policies for ICT professionals; maintenance, development and upgrading of ICT systems

331.944 8.184 56.269 130.883 136.608

89

Annex 1b: Budget on programs and measures for the period 2018-202171

Code Strategic Objectives / Programs / Specific Objectives / MeasuresValue

,000 RONValue / year - ,000 RON

2018 2019 2020 2021

SO 1Increasing the employment rate of people aged 20-64, on an inclusive labor market, that would support competitive economic growth and lead to a reduction of in-work poverty and informal labor

5.275.177

1.217.409

1.350.376 1.346.140 1.361.252

P 1.1 Employment for all 1.870.292

426.094 458.043 487.623 498.532

1.1.1.1 Identification and registration of young NEETs in the integrated database of ANOFM (National Employment Agency) 344.454 68240 91438 92388 92388

1.1.1.2 Information and career counselling services 3.722 946 900 925 951

1.1.1.3 Labor matching services - - - - -

1.1.1.4 Assistance and consultancy services for a business start-up or for starting a self-employed professional activity

2.164 519 533 548 564

1.1.1.5Partial unemployment benefits payed to the unemployed who take up employment prior to the expiration of the legal period for receiving unemployment benefit

136.174 31.822 32.284 36.034 36.034

1.1.1.6 Mobility support schemes (commuting grants) 18.900 3.150 3.150 6.300 6.300

1.1.1.7 Mobility support schemes (resettlement grants) 39.925

3.725 12.300 11.950 11.950

71 The amounts identified for measures, budget programs and strategic objectives represent an estimation of the budgetary needs, which was conducted when the document was drawn up. The amounts will be revised when elaborating the budget proposals.

90

1.1.1.8 Mobility support schemes (relocation grants) 16.200 2.160 3.240 5.400 5.400

1.1.1.9 Employment grants for graduates 6.500

1.500 1.500 1.750 1.750

1.1.1.10 Activation grants for the unemployed who do not collect unemployment benefits 65.000 15.00

0 15.000 17.500 17.500

1.1.1.11 Personalized social accompaniment

1.1.2.1 Internship schemes for higher-education graduates 16.200 4.050 4.050 4.050 4.050

1.1.2.2 Temporary jobs scheme for pupils and students during the holidays - - -

- 0

1.1.2.3 Apprenticeship vocational training schemes 16.200 4.050 4.050 4.050 4.050

1.1.3.1 Professional training courses 325.262 93.429 72.335 76.612 82.886

1.1.3.2 Evaluation and certification of professional skills acquired through non-formal and informal learning - - -

- 0

1.1.4.1 Subsidies for employers to increase and diversify the professional skills of employees

309 - 100 103 106

1.1.4.2 Outplacement services to reduce the risk of unemployment - - - - 0

1.1.5.1 Subsidies to employers who have been awarded public services or social services contracts

16.014

1.119 4.965 4.965 4.965

1.1.5.2 Subsidies to employers who hire graduates 114.480

27.000 29.160 29.16

0 29.160

1.1.5.3 Subsidies to employers who hire graduates with disabilities 12.960

3.240 3.240 3.24

0 3.240

91

1.1.5.4 Subsidies to employers who hire young NEETs 12.825

3.375 3.150 3.150 3.150

1.1.5.5 Subsidies to employers who hire unemployed aged 45 or more 665.707

147.755 162.554 175.404 179.994

1.1.5.6 Subsidies to employers who hire persons from single-parent families 1.634 554 360 360 360

1.1.5.7 Subsidies to employers who hire long-term unemployed 2.475

1.395 360 360 360

1.1.5.8 Subsidies to employers who hire people with disabilities 9.720

2.430

2.430

2.430 2.430

1.1.5.9 Subsidies to employers who hire people with less than 5 years to the retirement

13.608

3.402 3.402 3.40

2 3.402

1.1.5.10 Subsidies to employers who hire young persons at risk of marginalisation 29.860 7.234 7.542 7.54

2 7.542

P 1.2 Passive measures for the unemployed 1.914.560 509.330 482.826 461.202 461.202

1.2.1.1 Unemployment benefits, social security contributions and health insurance contributions for the recipients of unemployment benefits 364.085 95.44

7 91.602 88.518 88.518

1.2.1.2. Redundancy payments 1.550.475 413.883 391.224 372.684 372.684

P 1.3 Working conditions 877.426

156.977 259.198 228.524 232.727

1.3.1.1 Decent and motivating wages - - - - 0

1.3.1.2 Implementation of the framework-law on the wage system for the public-sector employees - - -

- 0

1.3.2.1 Achieving the health and security at work objectives from the MMJS Sectoral R&D Framework Program - - -

- 0

92

1.3.2.2 Achieving the goals assumed in the Government's Annual Work Plan - - - - 0

1.3.3.1 Strengthen measures to prevent and reduce the undeclared work (annual plan of measures)

364.729

70.308 96.238 98.15

4 100.029

1.3.3.2 Fight against gender discrimination, harassment, and sexual harassment on the labour market - - -

- 0

1.3.3.3 Increasing the safety of the workplace 221.353

42.694 58.386 59.561 60.712

1.3.3.4Increased control on the establishment and provision of statutory rights to employees as derived from labour legislation, relevant collective contract, and individual labour contracts

145.618

21.933 52.287 35.405 35.993

1.3.3.5 Raising the awareness of the socio-economic environment on the compliance with the legislation in force and ensuring working conditions

145.727

22.042 52.287 35.405 35.993

P 1.4 Insurance for work accidents and occupational diseases 612.899 125.008 150.309 168.791 168.791

1.4.1.1 Higher accessibility for the beneficiaries - - - - 0

1.4.1.2 Simplification and higher efficiency of the procedure for contracting / reimbursement of medical services

3.886 920 966 1.000 1.000

1.4.1.3 Improving benefits to families of occupational accidents and occupational diseases victims 526.013 104.58

8 128.843 146.291 146.291

1.4.2.1 Ensuring the flow of European documents without disruptions 19.500 4.500 5.000 5.000 5.000

1.4.2.2 Reducing the response times of competent institutions according to the requirements of European regulations - - - - 0

1.4.3.1 Diversification of annual prevention programs structured on EC Directives / national legislation 63.500 15.00

0 15.500 16.500 16.500

93

1.4.3.2 Focus of the preventive activities towards the SMEs - - - - 0

1.4.3.3 Progressive development of information / communication campaigns addressed to the business environment - - - - 0

SO 2 An adequate and sustainable pension system 361.663.954

73.523.885

87.682.833

99.736.817 100.720.418

P 2.1 Adequacy and equity in the pension system 5.236

1.232

1.284

1.332 1.388

2.1.1.1 Increase of average gross pension 1.309 308 32

1 33

3 347

2.1.1.2 Increase of minimum social allowance for the pensioners 1.309 308 32

1 33

3 347

2.1.1.3 Incentives to the development of the private pension system 1.309 308 32

1 333 347

2.1.2.1Harmonisation of requirements and proper application of legal requirements for reducing the level of inequality and inconsistency in the pension system

1.309 308 32

1 333 347

P 2.2 Management of the pension system 361.658.718

73.522.653

87.681.549

99.735.485 100.719.030

2.2.1.1 Appropriate management of the public pension system 8.807.700

1.402.000 2.259.300 2.573.20

0 2.573.200

2.2.1.2 Pensions and associated benefits 352.851.018

72.120.653

85.422.249

97.162.285 98.145.830

SO 3Reducing the number of people at risk of poverty and social exclusion in the context of creating a network of social services integrated, complex and well coordinated

59.741.868

14.161.572

15.509.941

15.025.769 15.044.586

P 3.1 Child protection 764.346

2.218

194.136

140.481 427.512

94

3.1.1.1 Establishment of at least one day-care service for each administrative-territorial unit

586.750 - 111.60

0 55.80

0 419.350

3.1.1.2 Extension of the area in which the minimum services package is provided 15.147 - 63

5 6.35

0 8.162

3.1.1.3 Higher quality of the social services targeting children 218 218 -

- 0

3.1.2.1

Closing down the placement institutions from the child protection system operating in the structure established during 1997, and 2000 (classic placement centers), and providing the service through family-type foster houses and apartments

147.801 - 73.90

1 73.90

1 0

3.1.2.2 Establishment of 8 regional centers specialized on assisting children with behavioral issues

14.430

2.000

8.000

4.430 0

P 3.2 Social assistance benefits and social inspection 58.068.055 14.042.990

14.957.923

14.576.753 14.490.389

3.2.1.1 Benefits granted as support for low-income families (social aid/ heating utilities subsidies/family support allowance)

2.029.055

1.495.078

510.089 11.944 11.944

3.2.1.2 Benefits granted according to family support policies (child allowance/ child rearing benefit/maternity allowance/back-to-work bonus)

34.377.072

8.400.776

8.645.221

8.690.519 8.640.556

3.2.1.3 Disability benefits 16.487.897

4.045.777

4.102.239

4.169.941 4.169.941

3.2.1.4 Increased share of social benefits paid through the Minimum Social Insertion Income (VMI)

4.745.055 - 1.595.19

7 1.595.

197 1.554.662

3.2.1.5Ex-ante verification of benefits for low-income families, to reduce the number of non-eligible applications (social aid/ heating utilities subsidies/family allowance)

66.638

15.693 16.320 16.97

3 17.652

3.2.1.6Ex-ante verification of benefits granted according to family support policies, to reduce the number of non-eligible applications (child allowance/ child rearing benefit/ maternity allowance/ back-to-work

66.638

15.693 16.320 16.97

3 17.652

95

bonus)

3.2.1.7Taking over the payment of the rights granted to persons with disabilities, in accordance with the provisions of GEO 51/2016, for the modification and completion of some normative acts

23.200

5.800 5.800 5.800 5.800

3.2.1.8 Granting social benefits and access to social services through the new Social Assistance Data Management System (DIAMANT)

3.2.2.1.

Strengthening the efficiency of the social inspection, by diversification of verification techniques (risk profiling, databases crosscheck, widening of the sample, better sampling etc.), targeting beneficiaries of social aid, heating utilities subsidies, child allowance, child rearing benefit, maternity allowance, back-to-work bonus as well as disability benefits

66.638

15.693 16.320 16.973 17.652

3.2.2.2. Efficient social inspection activity – unannounced inspections 66.638

15.693 16.320 16.97

3 17.652

3.2.2.3.Carrying out controls aimed at verifying compliance with minimum quality standards by public and private social service providers in order to strengthen the capacity and effectiveness of the social inspection act

66.638

15.693 16.320 16.973 17.652

3.2.2.4 Performing evaluations of social services against the minimum quality standards, for their licensing

5.948

1.401

1.457

1.515 1.575

3.2.2.5Strengthening the efficiency of the social inspection by verifications of the way in which public institutions ensure unrestricted access of disabled people

66.638

15.693 16.320 16.973 17.652

P 3.3 Social services 409.868 78 308 160.902 121 907 48 751

3.3.1.1 Ensuring, maintaining, and improving the quality of the social services 872 205 21

4 22

2 231

3.3.1.2

Improving the legal framework for services of identification and intervention at the level of local communities, given the drafted Regulatory Framework for social assistance services at village level and the revised Regulatory Framework at town, city and county level

872 205 21

4 22

2 231

96

3.3.1.3 Elaboration/revision of the cost and quality standards in the social services field

872 205 21

4 222 231

3.3.1.4

Development and implementation of a national program dedicated to the professional training of the staff in the field of social assistance and to hiring at least one social assistant for each administrative territorial unit

118.172

39.305 39.314 39.322 231

3.3.1.5Strengthening the capacity of the public social assistance services to provide social services by elaboration of instruments and methodological tools

872 205 21

4 22

2 231

3.3.1.6 Development of a national system of social inclusion 872 205 21

4 22

2 231

3.3.2.1 Elaboration/revision of the legislation regarding social assistance for elderly

190.831

17.335 89.498 54.367 29.631

3.3.2.2 Elaboration of the cost standards for public retirement homes according to the occupants’ level of dependence 872 205 214 222 231

3.3.2.3 Supporting the public-private partnership. Development of the mixed social services market

70.450

17.238 18.214 17.494 17.503

3.3.2.4 Developing the network of public community service at home for dependent elderly people 25.184 3.200 12.592 9.392 0

P 3.4 Disability rights 313.998 13.713 123.112 108.645 68.528

3.4.1.1

Introducing notions of accessibility and “universal design” into initial and continuous training programs for civil servants and professionals in the fields of: design and realization of the physical environment, access to the public transport system, communication, information and communication technologies and systems

- - - - 0

3.4.1.2 Rising awareness on the role of accessibility, including at the community level - - -

- 0

3.4.1.3 Professional training and informative workshops for the staff who 92.00 - 18.400 46.00 27.600

97

interacts or is involved in the assistance and protection of people with disabilities, including from the NGOs 0 0

3.4.2.1Identification of locations in the communities appropriate for the development of the modern social support infrastructure; elaboration of the restructuring plan for the classical institution

73.439

7.300

22.047

22.046 22.046

3.4.2.2Placement of people whose degree of disability allows them to life independently, have a social life and be employable to alternative family-type homes (sheltered houses)

87.494 920 53.067 24.53

7 8.970

3.4.2.3 Prevention of institutionalization and support of deinstitutionalization by setting up and/or diversifying the structures providing social services

35.907 411 23.711 9.37

0 2.415

3.4.2.4 Establishing and monitoring of mobile teams for community intervention for people with disabilities

4.830 - 80

5 1.61

0 2.415

3.4.2.5 Grants to NGOs according to the art. 99/Law 448/2006 20.328

5.082 5.082 5.08

2 5.082

P 3.5. Gender equality and fight against domestic violence 185.601

24.344 73.869 77.983 9.405

3.5.1.1 Informing and rising awareness among pupils on gender discrimination 3.120

3.040

80

- 0

3.5.1.2 Informing and rising awareness among public sector employees on gender discrimination

3.000

3.000 -

- 0

3.5.1.3 Informing and rising awareness among general population on gender discrimination

18.056

3.806 4.600 8.81

7 833

3.5.1.4Financial support for training of employees from state institutions, and from public or private organizations on equal treatment between men and women

124.470

3.000 60.690 60.690 90

3.5.1.5Events for rising awareness on the benefits of gender budgeting and on the fiscal facilities for the companies that provide day-care services to their employees

3.000

3.000 -

- 0

98

3.5.1.6 Informing and rising awareness among general population on domestic violence and its serious consequences

10.500

2.624 2.625 2.62

5 2.626

3.5.1.7 Informing and rising awareness among general population on legal framework protecting the victims of domestic violence

16.000

4.000

4.000 4.000 4.000

3.5.1.8Organizing events to mark the International Day against Domestic Violence (November, 25) and the International Day of Equal Opportunities between women and men (8 of May)

- - - - 0

3.5.1.9 Informing and rising awareness among pupils on gender discrimination 55 25 25

- 5

3.5.1.10 Development of an integrated network of services dedicated to the victims and aggressors

2.400 600 60

0 60

0 600

3.5.1.11Continuous training of experts: policemen, courts staff, employees of DGASPS/SPAS, probation officers, career counsellors, medical staff, teaching staff, social assistants, in the field of fighting domestic violence

5.000

1.249 1.249 1.25

1 1.251

SO 4 Strengthening the social dialogue 20.930

2.970

5.110

6.370 6.480

P 4.1 Preparing the anticipatory risk map 12.719 891 3.14

3 4.32

6 4.359

4.1.1.1

Developing, with the involvement of social partners, a set of indicators and mechanisms for the early identification of social conflicts risks, as well as the related measures for the prevention of social conflicts, and the identification of data sources

10.373 297 2.58

1 3.7

42 3.753

4.1.1.2Establishing the necessary inter-institutional protocols for information exchange and collaboration (Labor Inspection, Gendarmerie, Economic and Social Council)

1.173 297 28

1 29

2 303

4.1.1.3 Elaboration and adoption of a procedure for decision-making and activation of early intervention procedures, and monitoring the results

1.173 297 28

1 2

92 303

99

P 4.2 Widening the framework for social dialogue and strengthening the social dialogue institutional capacity

8.211

2.079

1.967

2.044 2.121

4.2.1.1 Organizing and functioning of the Office for Mediation and Arbitration of Collective Labor Disputes

2.346 594 56

2 584 606

4.2.1.2Establishing and continuously updating databases on social partner organizations; creating databases on collective labor disputes and collective labor agreements

1.173 297 28

1 29

2 303

4.2.1.3

Diversification of information channels, media and communication actions; Elaboration and dissemination of the Social Dialogue Yearbook; Ensuring an integrated communication and information system for the social partners

2.346 594 56

2 58

4 606

4.2.1.4 Coordination of national dialogue, provision of technical support, reporting and monitoring, and other current activities

2.346 594 56

2 58

4 606

SO 5

Strengthening the capacity of the Ministry of Labor and Social Justice (MMJS) to fulfill its functions for the elaboration and the implementation of the public and regulatory policies in its field of activity

443.679

37.916 84.596 157.923 163.245

P 5.1 Strengthening the administrative capacity of the institutions in the labour and social justice sector

111.736

29.732 28.327 27.040 26.637

5.1.1.1Revision of the organizational responsibilities and of the related procedures in order to allow an improved strategy formulation and an easy implementation of the ISP

1.197 282 29

3 305 317

5.1.1.2 Efficient provision of licensing and accreditation activities specific to the labour and social justice sector

10.446

2.460

2.558

2.661 2.767

5.1.1.3 Ensuring a performing management at the level of the MMJS, in 61.58 14.50 15.08 15.68 16.313

100

accordance with the existing objectives and with the legal regulations, in order to ensure that public funds are managed economically, efficiently and effectively by applying the internal/managerial control system standards

0 2 1 4

5.1.2.1Strengthening of policy making capacity, planning, and management services in all relevant sectors, fully integrating all social innovation initiatives

16.222

7.491

2.797

2.909 3.025

5.1.2.2 Strengthening of monitoring and evaluation systems 8.986

1.864

4.339

2.092 691

5.1.2.3Consultation with beneficiaries and stakeholders involved in the labour and social justice sector, for the formulation and publication of public policies

1.424 335 34

9 36

3 377

5.1.2.4 Transparency in the decision-making process and the formulation of public policies and legal framework

1.424 335 34

9 363 377

5.1.3.1 Human resources management and adaptation to the needs of the organization

4.284

1.009 1.049 1.09

1 1.135

5.1.3.2Increasing the level of knowledge, understanding and application of the integrity standards by the employees and the beneficiaries of public services

6.173

1.454 1.512 1.57

2 1.635

P 5.2

Information and Communication Technology (ICT) in the field of labor and social protection; ICT governance and efficient cybersecurity; successful human resources policies for ICT professionals; maintenance, development and upgrading of ICT systems

331.944 8.184 56.269 130.883 136.608

5.2.1.1 Reviewing and implementing ICT governance, cybersecurity policies, and human resources policies for ICT specialists

14.260 460 5.98

0 5.06

0 2.760

5.2.2.1 Primary and progressive maintenance for the communications infrastructure; primary infrastructure: office equipment and software; large infrastructure, data center hardware and basic software (operating

99.298

3.677 9.073 54.77

4 31.774

101

systems, virtualization, databases etc.)

5.2.2.2Modernization and development of cross-ministry systems for the entire social domain: portal, data exchange, data warehouse (big data), complex systems for reporting and analytics

44.178 127 7.10

9 13.94

3 23.000

5.2.2.3

Modernization and/or progressive maintenance of existing systems and developing systems / software applications (other than the reporting systems from Measure 3), which provide IT support for future social web services

174.207

3.921 34.106 57.10

6 79.074

102

Annex 2: Institutional Strategic Plan (summary table)

Unit Reference value (2017) Target 2020 Target 2021

Strategic Objective 1: Increasing the employment rate of people aged 20-64, on an inclusive labor market, that would support competitive economic growth and lead to a reduction of in-work poverty and informal labor

Impact indicator 1: Employment rate for persons aged 20 to 64

% of population aged 20 to 64 68.8% 70% NA

Impact indicator 2: In-work at risk of poverty rate % of employed population aged over 18, poverty threshold = 60 % of the national median equivalized disposable income (after social transfers)

17.2 164% NA

Program 1.1.: Employment for all

Objective 1.1.1.: Facilitating the integration of young NEETs through specific measures and programs

Result indicator: The share of young people under the age of 25 who take up employment, attend training courses, conclude an apprenticeship contract at the workplace or conclude an internship contract.

% of overall youth under 25 registered with ANOFM (National Employment Agency) 59.10% 75% NA

Objective 1.1.2.: Increasing the employment rate of registered jobseekers and prevention of unemployment

Result indicator: Share of filled vacancies % of vacancies declared by the employers at the ANOFM 77.17% 75% NA

Result indicator: Share of registered jobseekers who take up employment

% of jobseekers registered at the ANOFM 36.58% 40% NA

Objective 1.1.3.: Facilitating the transition from school to work

Result indicator: Share of registered jobseekers that conclude an apprenticeship contract

% of the jobseekers registered at ANOFM 0.02% 0.02% NA

Result indicator: Share of higher education graduates that conclude an internship contract

% of tertiary education graduates registered as jobseekers at the

1.50% 1.50% NA

103

ANOFM in the reference year

Objective 1.1.4.: Improving the skills of persons registered at the ANOFM through professional training

Result indicator: Share of the persons who take-up employment after no more than 6 months from graduating from a professional training course

% of people graduating professional training programs organized by the ANOFM

38.78% 35% NA

Result indicator: Share of the persons who take up employment no more than 12 months after graduating from a professional training course

% of people graduating professional training programs organized by the ANOFM

53.41% 45% NA

Objective 1.1.5: Preventing unemployment and strengthening employment

Result indicator: Share of subsidies to employers for training programs addressed to their own employees in total requests

% in total requests 0 20% NA

Result indicator: Share of persons receiving outplacement services in total persons made redundant collectively

% in total persons made redundant collectively 28.7% 40% NA

Objective 1.1.6: Stimulating employers to fill vacancies

Result indicator: Share of employed persons as a result of incentives granted to employers

% in total number of persons employed following the measures taken by ANOFM

8.80% 15% NA

Program 1.2. Passive measures for the unemployed

Objective 1.2.1.: Ensuring the protection of people in the unemployment insurance system

Result indicator: Share of unemployed receiving the unemployment benefit in the total number of unemployed

% of the total number of the unemployed (averge stock) 19.5% 20% NA

Program 1.3.: Working conditions

Objective 1.3.1.: Reducing the in-work at risk of poverty rate and the asymmetry of the wage curve

Result indicator: The share of the country's guaranteed gross minimum wage in the monthly average gross wage - the public sector

% 36.8% NA NA

Objective 1.3.2.: Improving the legal framework in the field of safety and security at work and ensuring the necessary measures for the application of the EU

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legislation that harmonizes the conditions of marketing of products in the field of competency of MMJS

Result Indicator: Number of awareness sessions addressed to economic agents, workers and their representatives

Number 433 473 490

Objective 1.3.3: Insuring employers’ full compliance with the legislation in the field of labor relations, safety and security at work and fight against discrimination

Result indicator: Verification of employers’ compliance level

Number of petitions/1000 employees 14.15 14.15 14.15

Program 1.4.: Insurance for work accidents and occupational diseases

Objective 1.4.1.: Focusing the occupational accidents and occupational diseases schemes towards better support for the beneficiaries

Result indicator: Diversification of benefits Share of benefits granted per 100 employees 3.50% 4.50% NA

Objective 1.4.2. Harmonizing the national legislation with the European Regulations as requested by the Electronic Exchange of Social Security Information (EESSI)

Result indicator: Level of employers ‘conformity with the requirements of the EU regulation

Share of non-conforming cases in total requests % 30.00% 20.00% NA

Objective.1.4.3. Incentives to employers to place prevention measures

Result indicator: Higher security and safety at work Share of implemented measures in total recommended % 25.00% 35.00% NA

Strategic Objective 2: An adequate and sustainable pension system

Impact indicator 1: Average replacement rate total/public scheme

% of the last gross wage 35.6%/35.6% (2013) 36.6/36.7% 36.6/36.7%

Program 2.1.: Adequacy and equity in the pension system

Objective 2.1.1.: A decent life for pensioners

Result indicator: Material deprivation rate among pensioners

% of retired people aged 65 and over 20.70% 16% 14%

Objective 2.1.2.: Complying with the principles of equity

Result indicator: Gender gap in average % 6% 5% 3%

105

replacement rate

Program 2.2.: Management of the pension system

Objective 2.2.1.: A stable and efficient system for the citizens

Result indicator: Coverage of net payments through contributions % 71% 78% 80%

Objective 3: Reducing the number of people at risk of poverty and social exclusion in the context of creating a network of social services integrated, complex and well coordinated

Impact indicator 1.: Relative at risk of poverty gap % of population 34.4% 34% 34%

Impact indicator 2: At risk of poverty rate among children % of population aged 16 or below 31.3% 33% 29%

Program 3.1.: Child protection

Objective 3.1.1.: Improving children’s access to quality social services

Result indicator: Coverage of social services for children (aged 0-17 years) % of population aged 18 and below 1.20% 1.50% NA

Objective 3.1.2.: Observing the rights and promoting the social inclusion of children in vulnerable situations

Result indicator: Share of beneficiaries placed in classical (old type) residential centers - children % of population aged 18 and below 0.085% 0.047% NA

Program 3.2. Social assistance benefits and social inspection

Objective 3.2.1.: Unique data management system for payment of social benefits and for management of programs financed through the state budget

Result indicator: Share of benefits payments verified electronically in total number of payments % 55% 90% 90%

Objective 3.2.2.: Reducing error and fraud in the social assistance system by rigorous inspection and verification of application of legal measures concerning granting of social benefits and provision of the social services

Result indicator: Share of fraudulent/erroneous social benefits payments in total social benefits payments

% 10% 4.0% 4.0%

Program 3.3. Social services

Objective 3.3.1.: Strengthening the national system of social assistance in view of insuring the access of all disadvantaged groups to quality social services, with a focus to developing the capacity of SPASs to provide the minimum package of integrated services at the level of each administrative territorial unit

106

Result indicator: Share of accredited public providers of social services in total public providers under the local authorities

% 33.70% 60% 80%

Objective 3.3.2. Increasing the access of the elderly to dedicated social servicesResult indicator: Coverage of social services for elderly

% of beneficiaries of day care centers for the elderly in total number of elderly people 65+ without serious health problems or complete inability to carry out daily activities

1.9 (2015) 3 3

Program 3.4.: Disability rights

Objective 3.4.1: Promoting accessibility in all areas of life to ensure that persons with disabilities enjoy the fundamental human rights and freedoms; eliminating discrimination

Result indicator: Employees of public institutions trained/informed on the need to ensure the accessibility of the physical, informational, and communicational environment

% 0% 30% NA

Objective 3.4.2: Gradual deinstitutionalization of people with disabilities placed in classical residential centers in stages, simultaneously with the development of community services

Result indicator: Deinstitutionalization of adults with disabilities and their transfer to shelter houses financed through POR - % of the total target (516 persons until 2023)

% 0% (new program in 2016) 35% NA

Program 3.5.: Gender equality and fight against domestic violence

Objective 3.5.1.: Reducing and preventing the cases of discrimination, harassment, and violence

Result indicator: Share of population aware of the existence of legal framework and the sanctions applicable in cases of discrimination, harassment, and violence

% 78% 85% NA

Strategic Objective 4: Strengthening social dialogue

Impact indicator: Share of mediated labor disputes % in total potential labor disputes 0% 5% 10%

107

Program 4.1: Preparing the anticipatory risk map

Objective 4.1.1: Identification of dispute generation potential

Result indicator: Share of identified potential disputes, for which early intervention measures are decided

% in total identified potential disputes 0% 15% 20%

Program 4.2. Widening the framework for social dialogue and strengthening the social dialogue institutional capacity

Objective 4.2.1. Increasing the efficiency of labor disputes' mediation and arbitrage

Result indicator: Share of labor disputes amortized in total labor disputes % labor disputes 43% 47% 50%

Objective 5: Strengthening the capacity of the Ministry of Labor and Social Justice (MMJS) to fulfill its functions for the elaboration and the implementation of the public and regulatory policies in its field of activity

Impact indicator: Degree of compliance with the state budget: The difference between the planned budget on January 1 and the definitive rectified budget on December 31

%

92%72 98% 100%

Impact indicator: Degree of compliance with the state budget: The difference between the planned budget on January 1 and the budget’s execution on December 31

%

94%73 100% 100%

Program 5.1: Strengthening the administrative capacity of the institutions in the labour and social justice sector

Objective 5.1.1: Improving the functional stability of MMJS and of institutions in its coordination, insuring a performant management of the public funds by applying standards of internal/managerial control

Result indicator: Number of annual changes in institutional structure

Number 374 1 NA

Result indicator: Number of conforming standards Number 1575 16 NA

72 Forecasted in 2017.73 Forecasted in 2017.74 Forecasted in 2017.75 Forecasted in 2017.

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Objective 5.1.2: Increasing the efficiency and transparency of the processes of elaboration, evaluation and implementation of quality public policies based on impact studies

Result indicator: Share of public policies/legal documents based on impact studies in total public policies / legal documents issued by MMJS

% 10%76 20% NA

Objective 5.1.3: Increasing the professional quality of the human resources in the labour and social justice sector, of the degree of knowledge, understanding and application of the integrity standards

Result indicator: Share of MMJS employees graduating from training programs in the Ministry priority domains or number of training days per civil servant

% NA 85% NA

Result indicator: Result indicator: Number of integrity incidents per thousand 877 2 NA

Program 5.2.: Information and Communication Technology (ICT) in the field of labor and social protection; ICT governance and efficient cybersecurity; successful human resources policies for ICT professionals; maintenance, development and upgrading of ICT systems

Objective 5.2.1.: Strengthening ICT governance, adopting ICT standards and policies cross-ministry, and increasing professional quality of ICT professionals in the field of labor and social protection

Result indicator: Share of reviewed documents / policies / audited in total number planned. % 0%78 100% 100%

Result indicator: Percentage of ICT trainings and certifications (for ICT specialists) according to the annual plan % NA79 0% 75%

Result indicator: Percentage of trainings on ICT notions / elements (for non-ICT specialists) according to the annual plan

% NA80 0% 60%

Objective 5.2.2.: Improving the functional stability of ICT systems and equipment; modernizing and simplifying information flows through digitization and

76 Forecasted in 2017.77 Forecasted in 2017.78 The minimum of documents is considered as follows 6: (i) ICT strategy, (ii) Operational procedures (P.o.) framework / general (iii) P.o. Access and Cyber-security, (iv) P.o. Continuity (business continuity), (v) P.o. Personal Data Protection (GDPR), (vi) Human Resources and Payroll Policies for ICT Specialists79 The annual assessment and plan for ICT training and certification will be implemented from 2020, meaning that in 2020 the first training plan will be carried out on the basis of the strategic documents and policies adopted.80 The assessment and the annual ICT training and certification plan will be implemented from 2020 onwards.

109

increasing interoperability / exchange of data cross-ministry; increasing the capacity of complex analysis cross-ministry; increasing transparency and public/open data

Result indicator: Percentage of implementation of life events in stage 5 (targetisation and pro-active) of ICT sophistication % NA81 0% 50%

Result indicator: Percentage of cross-ministry interoperability and implementation, retrieving data on life events into the cross-ministry data store

% NA82 0% 50%

Result indicator: Percentage of processes and procedures that will be technologically upgraded and integrated in the ministry and cross-ministry

% NA83 0% 60%

Result indicator: Percentage of IT infrastructure older than 8/7/6 years % NA84 5% (older

than 7 y)5% (older than 6 y)

Result indicator: Percentage of IT infrastructure and critical systems that undergo primary maintenance % NA 80% 100%

81Revision of the domains will be done by 2020; areas for review (life events) are considered: (i) social assistance (social benefits and services), (ii) disability and invalidity, (iii) retirement, (iv) occupation (search, loss, work accidents and incapacity of work), (v) child protection (including adoptions), (vi) others (equal opportunities, social dialogue, etc.); the revision of the list of life events by domain will be done in the ICT Strategy (Objective 4.2a and Measure 4.2.1)82 The list of processes and procedures that will be upgraded and integrated with ICT will be analyzed and detailed in the ICT Strategy (Objective 4.2a and Measure 4.2.1) simultaneously with their standardization and simplification; this list will include the processes / procedures related to domain-specific items under the responsibility of the MMJS and the administrative ones (accounting, budget, logistics); upgraded and integrated ICT will be made through progressive maintenance projects and / or ICT implementation (development, upgrading) projects.83 The list of processes and procedures that will be upgraded and integrated will be analyzed and detailed in the ICT Strategy.84 The revised inventory will be completed in 2018. Primary maintenance for infrastructure and critical systems in MMJS and subordinate / coordinated institutions (critical infrastructure) includes: hardware (servers, storage equipment, etc.), COTS (operating systems, virtualization, database, web-applications, etc.), WAN equipment and software, cybersecurity, etc. as well as software applications in the specific domains of MMJS (pensions, employment and unemployment, social assistance, disability and invalidity, labor inspection, child protection and rights, equal opportunities, social dialogue, etc.).

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Annex 3: Programs and measures (summary table)

Budgetary Program & Measure Output indicator & Unit Reference value Target 2018 Target 2019 Target 2020 Target

2021

Program 1.1.: Employment for all

Specific objective 1.1.1.: Increasing the employment rate of registered jobseekers and prevention of unemployment

Measure 1.1.1.1.:Identification and registration of young NEETs in the integrated database of ANOFM (National Employment Agency)

Number of NEETs registered in the ANOFM database 52256

60000 people (project indicator POCU AP2, PI 8ii, OS 2.3.)

60000 20000 20000

Measure 1.1.1.2.:Information and career counselling services

Number of people benefiting from professional information and counseling

385291 344325 350000 350000 350000

Measure 1.1.1.3.:Labor matching services

Number of people employed through labor matching services 254956 270386 270000 250000 250000

Measure 1.1.1.4.:Assistance and consultancy services for a business start-up or for starting a self-employed professional activity

Number of people who launched a business start-up or started a self-employed professional activity

100 130 150 150 150

Measure 1.1.1.5.:Partial unemployment benefits payed to the unemployed who take up employment prior to the expiration of the legal period for receiving unemployment benefit

Number of people who take up employment before the expiry of the legal period for receiving unemployment benefits and receive partial unemployment benefits

16973 12775 12727 11818 11818

Measure 1.1.1.6: Number of people benefiting from commuting grants 411 1455 1700 1700 1700

111

Mobility support schemes (commuting grants)

Measure 1.1.1.7.:Mobility support schemes (resettlement grants)

Number of people benefiting from resettlement grants 695 730 900 900 900

Measure 1.1.1.8.:Mobility support schemes (relocation grants)

Number of people benefiting from relocation grant 0 890 600 600 600

Measure 1.1.1.9.:Employment grants for graduates

Number of graduates benefiting from employment grants

2544 2105 21002100 2100

Measure 1.1.1.10.:Activation grants for the unemployed who do not collect unemployment benefits

Number of unemployed people who do not collect unemployment benefits receiving activation grants

0 13010 14500 14500 14500

Measure 1.1.1.11.:Personalized social accompaniment

Number of young people at risk of social marginalization who concluded solidarity contracts

425 430 500 500 500

Specific Objective 1.1.2.: Facilitating the transition from school to work

Measure 1.1.21.:Internship schemes for higher-education graduates

Number of internship contracts concluded by higher-education graduates

55 250 300 300 300

Measure 1.1.2.2.:Temporary jobs scheme for pupils and students during the holidays

Number of pupils and students employed during holidays 2527 1995 2000 2000 2000

Measure 1.1.2.3.:Apprenticeship vocational training schemes

Number of people who concluded apprenticeship contracts 167 2064 2000 2000 2000

Specific Objective 1.1.3.: Improving the skills of persons registered at the ANOFM through professional training

Measure 1.1.3.1.:Professional training courses

Number of people attending free training courses offered by ANOFM 26837 33299 35000 35000 35000

Measure 1.1.3.2.: Number of people benefiting from 131 128 200 200 200

112

Evaluation and certification of professional skills acquired through non-formal and informal learning

services of evaluation and certification of professional skills acquired through non-formal and informal learning

Specific Objective 1.1.4. Preventing unemployment and strengthening employment

Measure 1.1.4.1Subsidies for employers to increase and diversify the professional skills of employees

Number of subsidies granted to employers for professional training courses attended by employees

0 223 223 223 223

Measure 1.1.4.2Outplacement services to reduce the risk of unemployment

Number of people benefiting from outplacement services 3000 3000 3000 3000 3000

Specific Objective 1.1.5.: Stimulating employers to fill vacancies

Measure 1.1.5.1.:Subsidies to employers who have been awarded public services or social services contracts

Number of people temporarily employed in public-interest community works

0 1207 5000 5000 5000

Measure 1.1.5.2.:Subsidies to employers who hire graduates

Number of graduates employed with the subsidies 4898 5376 6000 6000 6000

Measure 1.1.5.3.:Subsidies to employers who hire graduates with disabilities

Number of disabled graduates employed 7 10 10 10 10

Measure 1.1.5.4:Subsidies to employers who hire young NEETs

Number of young NEETs employed 0 2095 3500 3500 3500

Measure 1.1.5.5.:Subsidies to employers who hire unemployed aged 45 or more

Number of unemployed people aged above 45 who have been employed 17744 17258 15500 15500 15500

Measure 1.1.5.6.:Subsidies to employers who hire persons from single-parent families

Number of unemployed persons from single parent families who take up employment

218 360 400 400 400

113

Measure 1.1.5.7.:Subsidies to employers who hire long-term unemployed

Number of long-term unemployed persons who take up employment 0 484 400 400 400

Measure 1.1.5.8.:Subsidies to employers who hire people with disabilities

Number of disabled people who get a subsidized job 141 184 150 150 150

Measure 1.1.5.9.:Subsidies to employers who hire people with less than 5 years to the retirement

Number of unemployed people with 5 years before retirement who get a subsidized job

300 471 300 300 300

Measure 1.1.5.10.:Subsidies to employers who hire young persons at risk of marginalisation

Number of young people at risk of social marginalization, employed by insertion employers

297 310 300 300 300

Program 1.2.: Passive measures for the unemployed

Specific Objective 1.2.1 Ensuring the protection of people in the unemployment insurance system

Measure 1.2.1.1.:Unemployment benefits, social security contributions and health insurance contributions for the recipients of unemployment benefits

Number of people collecting unemployment benefits (average annual stock)

83698 72000 70000 65000 65000

Measure 1.2.1.2.:Redundancy payments

Number of people who collect redundancy payments 11047 2000 2000 2000 2000

Program 1.3.: Working conditions

Specific objective 1.3.1.: Reducing the in-work at risk of poverty rate and the asymmetry of the wage curve

Measure 1.3.1.1.:Decent and motivating wages

Level of country's guaranteed gross minimum wage (RON)*) according to GD no. 846/201785

1450 1900 *) NA NA NA

85 By the Parliament's Decision no. 1/2018, it is foreseen that the minimum wage will increase annually by 100 RON, so that in 2020 it will be higher than the equivalent of 300 euros.

114

Measure 1.3.1.2.:Implementation of the framework-law on the wage system for the public-sector employees

The monthly average gross wage - the public sector (RON)*) Source: National Commission for Prognosis – "The projection of the main macroeconomic indicators 2018-2021" (spring forecast 2018 - published in April 2018)86

3932 *) 5257 *) 5862 *) 6219 *) 6219 *)

Specific Objective 1.3.2.: Improving the legal framework in the field of safety and security at work and ensuring the necessary measures for the application of the EU legislation that harmonizes the conditions of marketing of products in the field of competency of MMJS

Measure 1.3.2.1.:Achieving the health and security at work objectives from the MMJS Sectoral R&D Framework Program

Number of implemented projects 3 3 3 3 3

Measure 1.3.2.2.:Achieving the goals assumed in the Government's Annual Work Plan

NA NA NA NA NA

Specific Objective 1.3.3: Insuring employers’ full compliance with the legislation in the field of labor relations, safety and security at work and fight against discrimination

Measure 1.3.3.1.:Strengthen measures to prevent and reduce the undeclared work (annual plan of measures)

Number of national campaigns for identifying and fighting undeclared work 10 11 11 11 11

Measure 1.3.3.2.:Fight against gender discrimination, harassment, and sexual harassment on the labour market

Number of inspections carried out 23429 23429 23429 23429 23429

Number of measures disposed to remedy nonconformities 852 852 852 852 852

86 The data refer to the statistics of economic activities (aggregated by homogeneous activity) according to CAEN, public administration, education and health and social assistance (including private sector for education - about 4,9%, respectively health and social assistance - about 12, 8%), excluding armed forces and assimilated personnel (MApN, SRI, MAI, etc.). Monthly gross monthly earnings data series up to 2017 are not comparable to the forecast for the period 2018-2021; the forecast includes the transfer of social security contributions from the employer to the employee.

115

Measure 1.3.3.3.:Increasing the safety of the workplace

Number of awareness sessions 433 453 463 473 490

Number of economic inspections carried out 58100 57300 57300 57300 57300

Measure 1.3.3.4.:Increased control on the establishment and provision of statutory rights to employees as derived from labour legislation, relevant collective contract, and individual labour contracts

Number of inspections carried out 76690 75000 75000 75000 75000

Number of thematic inspections 5 5 5 5 5

Number of measures disposed to remedy nonconformities 500 500 500 500 500

Number of awareness actions addressed to economic agents 1006 1056 1081 1106 1100

Number of specific training courses for the labor inspectors 134 152 161 170 170

Measure 1.3.3.5.:Raising the awareness of the socio-economic environment on the compliance with the legislation in force and ensuring working conditions

Number of awareness actions addressed to workers and their representatives

608 622 636 650 665

Number of awareness actions addressed to economic agents 1031 1056 1081 1106 1106

Number of specific training courses for the labor inspectors 143 152 161 170 179

Program 1.4.: Insurance for work accidents and occupational diseases

Specific Objective 1.4.1.: Focusing the occupational accidents and occupational diseases schemes towards better support for the beneficiaries

Measure 1.4.1.1.:Higher accessibility for the beneficiaries

Use of computer applications (number of visits) 2150 225000 235000 250000 250000

Measure 1.4.1.2.:Simplification and higher efficiency of the procedure for contracting / reimbursement of medical services

Percentage of reimbursement (%) 0.60 100% 100% 100% 100%

Measure 1.4.1.3.: Budget execution (%) 0.30 40% 50% 60% 60%

116

Improving benefits to families of occupational accidents and occupational diseases victims

Specific Objective 1.4.2.: Harmonizing the national legislation with the European Regulations (883 și 987) as requested by the Electronic Exchange of Social Security Information (EESSI)

Measure 1.4.2.1.:Ensuring the flow of European documents without disruptions

Number of operations carried out 23000 250000 300000 500000 500000

Measure 1.4.2.2.:Reducing the response times of competent institutions according to the requirements of European regulations

Average work time for one file (days) 60 60 45 30 30

Specific Objective 1.4.3.: Incentives to employers to place prevention measures

Measure 1.4.3.1.:Diversification of annual prevention programs structured on EC Directives / national legislation

Performance indicators ( average country score) 3.37 3.40 3.42 3.44 3.44

Measure 1.4.3.2.:Focus of the preventive activities towards the SMEs

Number of recommended measures 118000.00 125000 130000 135000 135000

Measure 1.4.3.3.:Progressive development of information / communication campaigns addressed to the business environment

Number of communication campaigns / number of participants 155/1810 160/1850 185/1900 200/2000 200/2000

Program 2.1.: Adequacy and equity in the pension system

Specific Objective 2.1.1.: A decent life for pensioners

Measure 2.1.1.1.:Increase of average gross pension

Minimum pension (RON) NA NA NA NA NA

Value of the pension point (RON) 917.5/1000 1.000 /1.100 1.100 /1.265 1.265

117

/1.400/1.775

1.775

Measure 2.1.1.2.:Increase of minimum social allowance for the pensioners

Value of the minimum social allowance for the pensioners (RON) 400 520/640 640 640 640

Measure 2.1.1.3.:Incentives to the development of the private pension system

Number of participants to Pillar II 7 024 179 NA NA NA NA

Number of participants to Pillar III 446 131 NA NA NA NA

Specific Objective 2.1.2.: Complying with the principles of equity

Measure 2.1.2.1.:Harmonisation of requirements and proper application of legal requirements for reducing the level of inequality and inconsistency in the pension system

Women’s retirement age with minimum no. of years of retirement contributions (years)

60.20 61.60 62.30 63.00 63.00

Program 2.2.: Management of the pension system

Specific Objective 2.2.1.: A stable and efficient system for the citizens

Measure 2.2.1.1.:Appropriate management of the public pension system

Number of normative acts modified so as to ensure the unification and simplification of legislation

20 20 15 15 15

Measure 2.2.1.2.:Pensions and associated benefits Number of pensioners of the public

pensions system 5341300 5224000 5192000 5159000 5159000

Program 3.1.: Child protection

Specific Objective 3.1.1.: Improving children’s access to quality social services

Measure 3.1.1.1.:Establishment of at least one day-care service for each administrative-territorial unit

Number of day-care services designed to prevent the separation of children from their families

1096 1500 1700 3200 3200

118

Measure 3.1.1.2.:Extension of the area in which the minimum services package is provided

Number of communities in which the minimum service package is provided 45 50 100 165 165

Measure 3.1.1.3.:Higher quality of the social services targeting children

Basic quality standards elaborated and disseminated in all the territorial-administrative units

5 5 5 5 5

Specific Objective 3.1.2.: Observing the rights and promoting the social inclusion of children in vulnerable situations

Measure 3.1.2.1.:Closing down the placement institutions from the child protection system operating in the structure established during 1997, and 2000 (classic placement centers), and providing the service through family-type foster houses and apartments

Number of classical placement units 73 48 23 23 23

Measure 3.1.2.2.:Establishment of 8 regional centers specialized on assisting children with behavioral issues

Number of specialized regional centers established 0 2 8 - -

Program 3.2.: Social assistance benefits and social inspection

Specific Objective 3.2.1.: Unique data management system for payment of social benefits and for management of programs financed through the state budget

Measure 3.2.1.1.:Benefits granted as support for low-income families (social aid/ heating utilities subsidies/family support allowance)

Number social aid benefits paid 244814 250000 0 0 0

Number of heating utilities subsidies paid 569581 285000 0 0 0

Number of family support allowance paid 273337 275000 0 0 0

Measure 3.2.1.2.:Benefits granted according to family support policies (child allowance/ child rearing benefit/maternity allowance/back-to-work

Number of child allowances paid 3662793 3655760 3655760 3675760 3675760

Number of child rearing benefit paid 40735 41000 41000 41000 41000

Number of maternity allowances and back-to-work bonuses paid

141153/41334

160.000/75.000

165.000/80.000

170.000/85.000

170.000/85.000

119

bonus)Measure 3.2.1.3.:Disability benefits:1. Disability rights granted according to the Law 448/2006:a. Monthly complementary personal budget for persons with severe, major or average disability;b. Monthly indemnity for adults with severe or major disabilityc. Allowance for the caregiver of the visually impaired, with major disabilityd. Monthly food allowance for children with HIV/AIDS2. Monthly food allowance for HIV/AIDS patients granted according to the Law 584/2002.

Number of beneficiaries by category (total, of which): 1408782 1428707 1428707 1428707 1428707

1, from which: 1398897 1418657 1418657 1418657 1418657

a) 739794 750622 750622 750622 750622

b) 617393 625855 625855 625855 625855

c) 41529 42000 42000 42000 42000

d) 181 180 180 180 180

2 9885 10050 10050 10050 10050

Measure 3.2.1.4.:Increased share of social benefits paid through the Minimum Social Insertion Income (VMI)

Number of beneficiaries of Minimum Social Insertion Income (VMI) who receive revenues following taking up employment

0.00 0.00 1000.00 1500.00 2000.00

Measure 3.2.1.5.:Ex-ante verification of benefits for low-income families, to reduce the number of non-eligible applications (social aid/ heating utilities subsidies/family allowance)

Percentage of ex-ante verification during the period between granting the rights and making the payment to the beneficiaries (%)

0% 50% 70% 95-98% 95-98%

Value of payments verified ex-ante as share of total value of payments (%) 0% 60% 80% 95-98% 95-98%

Measure 3.2.1.6.:Ex-ante verification of benefits granted according to family support policies, to reduce the number of non-eligible applications (child allowance/ child rearing benefit/ maternity allowance/ back-

Percentage of ex-ante verification during the period between granting the rights and making the payment to the beneficiaries (%)

0% 50% 70% 95-98% 95-98%

Value of payments verified ex-ante as 0% 60% 80% 95-98% 95-98%

120

to-work bonus)share of total value of payments (%)

Measure 3.2.1.7.:Taking over the payment of the rights granted to persons with disabilities, in accordance with the provisions of GEO 51/2016, for the modification and completion of some normative acts

Percentage of beneficiaries of rights granted to disabled persons and paid by ANPIS (%)

0% 100% 100% 100% 100%

Measure 3.2.1.8.:Granting social benefits and access to social services through the new Social Assistance Data Management System (DIAMANT)

Share of social benefits granted through IT system (% in total payments)

80% 95% 100% 100% 100%

Specific Objective 3.2.2.: Reducing error and fraud in the social assistance system by rigorous inspection and verification of application of legal measures concerning granting of social benefits and provision of the social services

Measure 3.2.2.1.:Strengthening the efficiency of the social inspection, by diversification of verification techniques (risk profiling, databases crosscheck, widening of the sample, better sampling etc.), targeting beneficiaries of social aid, heating utilities subsidies, child allowance, child rearing benefit, maternity allowance, back-to-work bonus as well as disability benefits

Number of social inspectors verifying granting and payment of social assistance benefits

100 125 1 150 200

Share of non-eligible beneficiaries in the total number of beneficiaries 10% 6% 5% 3.5% 3.5%

Measure 3.2.2.2.:Efficient social inspection activity – unannounced inspections

Ratio between the no. of notifications and the no. of verifications (%) 100% 100% 100% 100% 100%

Measure 3.2.2.3.:Carrying out controls aimed at verifying compliance with minimum quality standards by public and private social service providers in order to strengthen the capacity and effectiveness of the social inspection act

Number of social inspectors carrying out verifications related to social services

100 200 250 300 300

Ratio between the no. of verified social services that comply with the minimum quality standards and the

28% 50% 75% 90% 90%

121

total no. of social services (%)

Measure 3.2.2.4.:Performing evaluations of social services against the minimum quality standards, for their licensing

Ratio between the no. of licensed social services that comply with minimum quality standards and the total no. of social services (%)

40% 50% 75% 90% 90%

Measure 3.2.2.5.:Strengthening the efficiency of the social inspection by verifications of the way in which public institutions ensure unrestricted access of disabled people

Ratio between the no. of public institutions/ economic agents that ensure unrestricted access of disabled people and the total no. of public institutions/economic agents (%)

20% 40% 60% 60% 60%

Program 3.3.: Social services

Specific Objective 3.3.1.: Strengthening the national system of social assistance in view of insuring the access of all disadvantaged groups to quality social services, with a focus to developing the capacity of SPASs to provide the minimum package of integrated services at the level of each administrative territorial unit

Measure 3.3.1.1.:Ensuring, maintaining, and improving the quality of the social services

Number of public social services licensed 1636 1963 2127 2290 2290

Measure 3.3.1.2.:Improving the legal framework for services of identification and intervention at the level of local communities, given the drafted Regulatory Framework for social assistance services at village level and the revised Regulatory Framework at town, city and county level

% of administrative territorial units having drafted and adopted Regulations of organization and functioning of public social assistance services

NA87 25% 40% 60% 100%

Measure 3.3.1.3.:Elaboration/revision of the cost and quality standards in the social services field

Number of elaborated/ reviewed standards 2+10 1 1 1 1

Measure 3.3.1.4.:Development and implementation of a national

Number of personnel working in the field of social assistance trained 0 480 3181 3181 3181

87 For this indicator, data collection begins with the strategic planning process and consequently there is no history of it and therefore no reference value for 2016.

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program dedicated to the professional training of the staff in the field of social assistance and to hiring at least one social assistant for each administrative territorial unit

Number of social assistants integrated in the system 0 129 1000 1000 1000

Measure 3.3.1.5.:Strengthening the capacity of the public social assistance services to provide social services by elaboration of instruments and methodological tools

Number of instruments, instructions and methodologies drafted / reviewed and disseminated

1 1 1 1 1

Measure 3.3.1.6.:Development of a national system of social inclusion

National indicators system put in place (number) 1 0 0 0 0

Specific Objective 3.3.2.: Increasing the access of the elderly to dedicated social services

Measure 3.3.2.1.:Elaboration/revision of the legislation regarding social assistance for elderly

Approved legislation (number of normative acts) 1 0 0 0 0

Measure 3.3.2.2.:Elaboration of the cost standards for public retirement homes according to the occupants’ level of dependence

Number of basic cost standards elaborated 0 0 0 0 0

Measure 3.3.2.3.:Supporting the public-private partnership. Development of the mixed social services market

Number of private providers of social services dedicated to elderly people benefiting from state budget subsidies

138 133 133 133 133

Measure 3.3.2.4.Developing the network of public community service at home for dependent elderly people

Number of dependent elderly people for whom home care services are provided

0 400 800 1000 1000

Number of home care units set up within / under the public social assistance service, in the administrative-territorial units where

0 30 40 50 50

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they do not exist

Program 3.4.: Disability rights

Specific Objective 3.4.1: Promoting accessibility in all areas of life to ensure that persons with disabilities enjoy the fundamental human rights and freedoms; eliminating discrimination

Measure 3.4.1.1.:Introducing notions of accessibility and “universal design” into initial and continuous training programs for civil servants and professionals in the fields of: design and realization of the physical environment, access to the public transport system, communication, information and communication technologies and systems

Number of training programs in the field of accessibility 0 1.00 1.00 1.00 3.00

Number of trained representatives of the local authorities 0 0.00 500.00 675.00 1175.00

Measure 3.4.1.2.:Rising awareness on the role of accessibility, including at the community level

Number of information campaigns 0 1 1 1 3

Measure 3.4.1.3.:Professional training and informative workshops for the staff who interacts or is involved in the assistance and protection of people with disabilities, including from the NGOs

Number of trained staff by training category and theme 0 0 0 360 360

Specific Objective 3.4.2.: Gradual deinstitutionalization of people with disabilities placed in classical residential centers in stages, simultaneously with the development of community services

Measure 3.4.2.1.:Identification of locations in the communities appropriate for the development of the modern social support infrastructure; elaboration of the restructuring plan for the classical institution

Classic institutions reformed (number) 11.00 11.00 9.00 0.00 0.00

Number of beneficiaries institutionalized in classic institutions 1911 1911 1911.00 1911.00 1833.60

Measure 3.4.2.2.:Placement of people whose degree of disability allows them to life independently, have a social

Number of people institutionalized 17176 17176 17176 17158.00 17128.00

Number of sheltered houses 115 0 150.00 56.00 0.00

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life and be employable to alternative family-type Measure 3.4.2.3.:Prevention of institutionalization and support of deinstitutionalization by setting up and/or diversifying the structures providing social services

Number of respite / crisis centers established 5 0 6.00 2.00 0.00

Number of day-care centers established 60 0 79.00 30 0.00

Measure 3.4.2.4.:Establishing and monitoring of mobile teams for community intervention for people with disabilities

Number of mobile teams 1 0 5.00 10.00 15.00

Measure 3.4.2.5.:Grants to NGOs according to the art. 99/Law 448/2006

Number of services newly established and accredited 0 0 25.00 25.00 25.00

Program 3.5.: Gender equality and fight against domestic violence

Specific Objective 3.5.1.: Reducing and preventing the cases of discrimination, harassment, and violence

Measure 3.5.1.1.:Informing and rising awareness among pupils on gender discrimination

Number of campaigns 1 2 2 2 2

Number of participating high school students 1500 3000 3000 3000 3000

Measure 3.5.1.2.:Informing and rising awareness among public sector employees on gender discrimination

Number of campaigns 1 1 1 1 1

Number of participants 300 300 300 300 300

Measure 3.5.1.3.:Informing and rising awareness among general population on gender discrimination

Number of campaigns 1 1 1 1 1

Measure 3.5.1.4.:Financial support for training of employees from state institutions, and from public or private

Number of training programs 1 2 3 3 3

Number of participants 300 400 600 600 600

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organizations on equal treatment between men Measure 3.5.1.5.:Events for rising awareness on the benefits of gender budgeting and on the fiscal facilities for the companies that provide day-care services to their employees

Number of training programs 0 2 2 2 2

Number of participants 0 200000 200000 200000 200000

Measure 3.5.1.6.:Informing and rising awareness among general population on domestic violence and its serious consequences

Number of campaigns 1 1 1 1 1

Measure 3.5.1.7.:Informing and rising awareness among general population on legal framework protecting the victims of domestic violence

Number of campaigns 1 2 2 2 2

Measure 3.5.1.8.:Organizing events to mark the International Day against Domestic Violence (November, 25) and the International Day of Equal Opportunities between women and men (8 of May)

1 (ref.2015) 1 1 1 1

Measure 3.5.1.9.:Informing and rising awareness among pupils on gender discrimination

Number of campaigns 1 2 2 2 2

Number of participants 1200 15000 15000 15000 15000

Measure 3.5.1.10.:Development of an integrated network of services dedicated to the victims and aggressors

Number of shelters for victims 61 70 85 100 100

Service centers for the prevention and control of domestic violence 33 40 45 50 50

Number of shelters for aggressors 2 5 8 12 12

Measure 3.5.1.11.:Continuous training of experts: policemen, courts

Number of participants 3.978 people (ref.2015) 300 350 350 350

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staff, employees of DGASPS/SPAS, probation officers, career counsellors, medical staff, teaching staff, social assistants, in the field of fighting domestic violence

Program 4.1.: Preparing the anticipatory risk map

Specific Objective 4.1.1.: Identification of dispute generation potential in labor relations

Measure 4.1.1.1.:Developing, with the involvement of social partners, a set of indicators and mechanisms for the early identification of social conflicts risks, as well as the related measures for the prevention of social conflicts, and the identification of data sources

% stages covered 0% 25% 50% 75% 100%

Measure 4.1.1.2.: Establishing the necessary inter-institutional protocols for information exchange and collaboration (Labor Inspection, Gendarmerie, Economic and Social Council)

Number of signed / revised / updated protocols 0 0 3 3 3

Measure 4.1.1.4.:Elaboration and adoption of a procedure for decision-making and activation of early intervention procedures, and monitoring the results

% stages covered 0% 25% 50% 75% 100%

Program 4.2.: Widening the framework for social dialogue and strengthening the social dialogue institutional capacity

Specific Objective 4.2.1.: Increasing the efficiency of the social dialogue processMeasure 4.2.1.1.: % stages covered88 30% 30% 50% 75% 100%

88 The implementation of the measure involves four important steps: preparatory activities, adoption of legislation, drafting memorandum, mediation training, database creation and dissemination. Some preparatory activities have already been completed, including the first round of training for mediators. Adoption of legislation is independent of MMJS (because the legislation is already on the circuit), so it will be found at risk factors. A breakdown of the implementation steps will be made in the operational plan.

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Organizing and functioning of the Office for Mediation and Arbitration of Collective Labor DisputesMeasure 4.2.1.2.:Establishing and continuously updating databases on social partner organizations; creating databases on collective labor disputes and collective labor agreements89

Databases a) establishedb) updated

33

33

33

33

33

Measure 4.2.1.3.:Diversification of information channels, media and communication actions; Elaboration and dissemination of the Social Dialogue Yearbook; Ensuring an integrated communication and information system for the social partners

a) Number of dissemination channels used90

b) Creating a platform for communication with social partners

2

0%

2

30%

4

60%

6

100%

6

100%

Measure 4.2.1.4.:Coordination of national dialogue, provision of technical support, reporting and monitoring, and other current activities

a) Number of SDC sessionsb) Number of sessions of the Tripartite National Council for Social Dialogue organizedc) Number of petitions received

476 (2016)6 (2016)1841 (2016)

500102000

500102000

500102000

500102000

Program 5.1.: Strengthening the administrative capacity of the institutions in the labour and social justice sector

Specific Objective 5.1.1.: Improving the functional stability of MMJS and of institutions in its coordination, insuring a performant management of the public funds by applying standards of internal/managerial control

Measure 5.1.1.1.:Revision of the organizational responsibilities and of the related procedures in order to allow an improved strategy formulation and an easy

Number of procedures changed / revised (ROF modified)

NA91 80 90 95 100

89 We considered the dissemination elements as follows: 1) the database of social partner organizations, 2) the labor conflicts database, 3) the database of collective labor agreements.90 We considered the following communication channels with social partners and the public: interactive web page, email / contact address, social networking accounts (Facebook, Instagram, Twitter), communication and dissemination events (conferences, presentations, advertising items - banners, posters, online and offline publications - including the social dialogue yearbook), dedicated platforms. A breakdown of the means of communication will be made in the operational plan.91 For this indicator, data collection begins with the strategic planning process and consequently there is no history of it and therefore no reference value for 2017

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implementation of the ISP

Measure 5.1.1.2.:Efficient provision of licensing and accreditation/certification activities specific to the labour and social justice sector

Annual number of licenses and accreditations per sector NA92 100 100 100 100

Measure 5.1.1.3.:Ensuring a performing management at the level of the MMJS, in accordance with the existing objectives and with the legal regulations, in order to ensure that public funds are managed economically, efficiently and effectively by applying the internal/managerial control system standards

Number of complying standards at the level of MMJS NA93 15 16 16 16

Specific Objective 5.1.2.: Increasing the efficiency and transparency of the processes of elaboration, evaluation and implementation of quality public policies based on impact studies

Measure 5.1.2.1.:Strengthening of policy making capacity, planning, and management services in all relevant sectors, fully integrating all social innovation initiatives

Share of public policy documents in accordance with the procedure approved by the ministry

NA94 10 15 20 30

Measure 5.1.2.2.:Strengthening of monitoring and evaluation systems

Number of functional monitoring systems NA95 1 2 2 3

92 For this indicator, data collection begins with the strategic planning process and consequently there is no history of it and therefore no reference value for 201793 For this indicator, data collection begins with the strategic planning process and consequently there is no history of it and therefore no reference value for 201794 For this indicator, data collection begins with the strategic planning process and consequently there is no history of it and therefore no reference value for 201795 For this indicator, data collection begins with the strategic planning process and consequently there is no history of it and therefore no reference value for 2017

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Measure 5.1.2.3.:Consultation with beneficiaries and stakeholders involved in the labour and social justice sector, for the formulation and publication of public policies

Number of consultation with beneficiaries and stakeholders carried out annually (Ratio between conducted consultations and elaborated regulations)

NA96 70 80 85 90

Measure 5.1.2.4.:Transparency in the decision-making process and the formulation of public policies and legal framework

Number of public interest information published 20 30 35 40 45

Number of recommendations from recipients collected 100 100 100 100 100

Share of public information requests answered NA97 10 15 20 30

Specific Objective 5.1.3.: Increasing the professional quality of the human resources in the labour and social justice sector, of the degree of knowledge, understanding and application of the integrity standards

Measure 5.1.3.1.:Human resources management and adaptation to the needs of the organization

Staff turnover within the MMJS and subordinated institutions 35% 30% 28% 25% 24%

Measure 5.1.3.2.:Increasing the level of knowledge, understanding and application of the integrity standards by the employees and the beneficiaries of public services

Percentage of total personnel participating in awareness and training programs

NA98 10% 20% 25% 30%

Number of integrity incidents 8 7 6 5 3

Number of identified risks and vulnerabilities to corruption 36 30 25 20 15

Program 5.2.: Information and Communication Technology (ICT) in the field of labor and social protection; ICT governance and efficient cybersecurity; successful human resources policies for ICT professionals; maintenance, development and upgrading of ICT systems

Specific Objective 5.2.1.: Strengthening ICT governance, adopting ICT standards and policies cross-ministry, and increasing professional quality of ICT professionals in the field of labor and social protection

96 For this indicator, data collection begins with the strategic planning process and consequently there is no history of it and therefore no reference value for 201797 For this indicator, data collection begins with the strategic planning process and consequently there is no history of it and therefore no reference value for 201798 For this indicator, data collection begins with the strategic planning process and consequently there is no history of it and therefore no reference value for 2017

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Measure 5.2.1.1.:Reviewing and implementing ICT governance, cybersecurity policies, and human resources policies for ICT specialistsNote: The underlying assumption is that by 2020 the Ministry will elaborate the first set of strategic documents that would include (i) ICT strategy,(ii) general ICT operational procedures (iii) operational procedures for access and cybersecurity (iv) operational procedures for business continuity, (v) operational procedures for data protection (GDPR), (vihuman resources policies specific for IT specialists.

Share of reviewed documents / policies / audited in total number planned NA99 100% 100%

Percentage of ICT trainings and certifications (for ICT specialists) according to the annual plan

NA100Elaboration of the anual plan

60% 80% 90%

Percentage of trainings on ICT notions / elements (for non-ICT specialists) according to the annual plan

NA101Elaboration of the anual plan

50% 70% 80%

Specific Objective 5.2.2.: Improving the functional stability of ICT systems and equipment; modernizing and simplifying information flows through digitization and increasing interoperability / exchange of data cross-ministry; increasing the capacity of complex analysis cross-ministry; increasing transparency and public/open dataMeasure 5.2.2.2: Primary and progressive maintenance for the communications infrastructure; primary infrastructure: office equipment and software; large infrastructure, data center hardware and basic software (operating systems, virtualization, databases etc.)

Percentage of IT infrastructure older than 8/7/6 years

No inventory available

Inventory 5% (older than 8 years)

5% (older than 7 years)

5% (older than 6 years)

Percentage of IT infrastructure and critical systems that undergo primary maintenance

No inventory available

Inventory 60% 80% 100%

Measure 5.2.2.2: Modernization and development of cross-ministry systems for the entire social domain: portal, data exchange, data warehouse (big data), complex systems for reporting and analytics

Percentage of cross-ministry interoperability and implementation, retrieving data on life events into the cross-ministry data store

0%102 0% 0% 20% 60%

99For this indicator, data collection begins with the strategic planning process and consequently there is no history of it and therefore no reference value for 2017100For this indicator, data collection begins with the strategic planning process and consequently there is no history of it and therefore no reference value for 2017101For this indicator, data collection begins with the strategic planning process and consequently there is no history of it and therefore no reference value for 2017102 New programe

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Percentage of processes and procedures that will be technologically upgraded and integrated in the ministry and cross-ministry

0%103 0% 10% 20% 50%

Percentage of implementation of life events in stage 5 (targeting) of ICT sophistication

0%104 0% 0% 20% 50%

Measure 5.2.2.3.:Modernization and/or progressive maintenance of existing systems and developing systems / software applications (other than the reporting systems from Measure 3), which provide IT support for future social web servicesModernization and/or progressive maintenance of existing systems and developing systems / software applications (other than the reporting systems from Measure 3), which provide IT support for future social web services

Percentage of processes and procedures that will be technologically upgraded and integrated in the ministry and cross-ministry

0%105 0% 10% 20% 50%

Percentage of implementation of life events in stage 5 (targeting) of ICT sophistication

0%106 0% 0% 20% 50%

103 New programe104 New programe105 New programe106 New programe

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Annex 4: Institutional Profile

Annex 4.1: Legislation regulating the labor and social justice sector

Internal legislation in the field of competence (laws)

LAW no. 153 of 1 July 2017 on the unitary remuneration of staff paid out of public funds EMERGENCY ORDINANCE No. 90/2017 regarding some fiscal-budgetary measures, the

amendment and completion of some normative acts and the extension of certain deadlines LAW NO. 80/2018 for the approval of Government Emergency Ordinance no. 90/2017 regarding

some fiscal-budgetary measures, the amendment and completion of some normative acts and the extension of certain deadlines

EMERGENCY ORDINANCE No. 91/2017 amending and supplementing the Framework Law no. 153/2017 on the remuneration of staff paid out of public funds

LAW NO. 79/2018 regarding the approval of Government Emergency Ordinance no. 91/2017 amending and supplementing the Framework Law no. 153/2017 on the remuneration of staff paid out of public funds

LAW no. 193 of May 17, 2006 regarding the granting of gift tickets or nursery tickets LAW no. 142 of July 9, 1998 regarding the granting of meal tickets, amended and completed LAW no. 53/2003 Republished, amended and completed (Labor Code) LAW no. 52/April 15, 2011 regarding the exercise of certain occasional activities carried out by day

workers, republished, amended and completed LAW no.7/January 9, 2008 approving Government Emergency Ordinance no. 115/2007 regarding the

amendment and supplementation of the Government Emergency Ordinance no. 116/2006 on social protection granted to persons fired through collective dismissals, carried out following the restructuring and reorganization of certain national companies, regie autonome, national companies and trade companies with majority state owned capital, as well as trade companies and regie autonome subordinated to the local public administration authorities

LAW 67/2006 regarding the protection of employees’ rights in the event of transfer, of the unit of certain parts of it

LAW 217/2005 on the establishment, organization and operation of the European Works Council LAW no. 554/2004 regarding administrative due process LAW no. 346/2002 regarding insurance in the case of labor accidents and occupational diseases,

republished, subsequently amended and supplemented LAW no. 126/1995 regarding the regime of explosives*) - REPUBLISHED LAW no. 76/2002 of January 16, 2002 regarding the system of unemployment insurance and

stimulating the workforce, subsequently amended and supplemented LAW no. 335/2013 regarding the internship performed by higher education graduates, subsequently

amended (Official Gazette no.776 of December 12, 2013), updated in accordance with GEO no. 49/2014 regarding the establishment of certain measures in the field of education, scientific research and the amendment of certain normative acts, published in the Official Gazette no. 486/June 30, 2014;

LAW no. 72/2007 on the stimulation of employment of pupils and students - Official Gazette no. 217/2007;

LAW no. 202/2006 on the organization and operation of the National Employment Agency, as well as for the establishment of certain institutional reorganization measure ***Republished - Official Gazette no. 294/06.05.2009;

LAW no. 279/2005 regarding on-the job apprenticeship, republished - Official Gazette no. 498 of August 7, 2013

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LAW no. 263/2010 regarding the unitary public pensions system, subsequently amended and supplemented;

LAW no. 411/2004 regarding the private pensions funds, republished LAW no. 204/2006 regarding optional pensions LAW no. 174 of October 10, 2008 approving Government Emergency Ordinance no. 97/2007

amending and supplementing Law no. 61//1993 regarding state allowance for children LAW no. 175 of October 10, 2008 repelling Government Emergency Ordinance no. 16/2008 amending

and supplementing Law no. 61/1993 regarding state allowance for children LAW no. 61 of September 22, 1993 regarding state allowance for children, republished LAW no. 277 of December 24, 2010 regarding state allowance for family support LAW no. 161 of May 8, 2009 approving Government Emergency Ordinance no. 118/2008 regarding

the amendment and supplementation of certain normative acts, with the view of eliminating direct links of certain social welfare rights and the gross minimum guaranteed salary

LAW no. 236 of October, 2008 amending Government Emergency Ordinance no. 105/2003 regarding complementary family allowance and allowance for supporting single-parent families

LAW no. 41 of October, 2008 approving Government Emergency Ordinance no. 105/2003 regarding complementary family allowance and allowance for supporting single-parent families

LAW no. 197/2012 on ensuring the quality of social services LAW no. 292 of December 20, 2011 - LAW of social welfare LAW no. 74 of May 3, 1999 ratifying the revised European Social Charter, adopted in Strasbourg on

May 3, 1996 LAW no. 47 of March 8, 2006 regarding the national social welfare system LAW no. 27 of March 5, 2004 approving Government Emergency Ordinance no. 77/2003 amending

and supplementing Government Ordinance no. 137//2000 regarding the prevention and sanctioning of all forms of discrimination

LAW no. 283 of June 26, 2003 ratifying the Optional Protocol to the Convention on eliminating all forms of discrimination towards women, adopted in New York on October 6, 1999

LAW no. 612 of November 13, 2002 on formulating a declaration regarding the recognition by Romania of the competence of the Committee for Eliminating Racial Discrimination, in accordance with art. 14 of the International Convention on the Elimination of all Forms of Racial Discrimination, adopted by the General Assembly of the United National in New York on December 21, 1965

LAW no. 48 of January 16, 2002 approving Government Emergency Ordinance no. 137/2000 regarding the prevention and sanctioning of all forms of discrimination

LAW no.62/April 1, 2009 approving Government Emergency Ordinance no. 61/2008 regarding the implementation of the principle of equal opportunities for men and women in what concerns access to goods and services and the supply of goods and services (Official Gazette no. 229/April 8, 2009)

LAW no. 44/March 19, 2008 approving Government Emergency Ordinance no. 67/2007 regarding the application of equal opportunities for men and women within the Social Security professional schemes (Official Gazette no. 227/March 25, 2008)

LAW no. 202 of April 19, 2002 regarding equal opportunities for men and women (Official Gazette no. 150 of March 1, 2007, republished, amended and completed)

Law no. 25 of March 5, 2004 approving Government Emergency Ordinance no. 96/2003 regarding the protection the maternity leave in what concerns the workplace (Official Gazette no. 214 of March 11, 2004)

Law no. 210 of December 31, 1999 LAW of parental leave (Official Gazette no. 654 of December 31, 1999)

LAW no. 116 of March 15, 2002 on prevention and fight against social marginalization LAW no. 129 of June 25, 1998 on the establishment, organization and functioning of the Romanian

Fund for Social Development, republishedLAW no. 207 of June 2, 2009 approving Government Emergency Ordinance no. 86/2008 amending Law no. 448/2006 on the protection and promotion of the rights of disabled

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LAW no. 448 of December 6, 2006, republished, on the protection and promotion of the rights of disabled

LAW no. 272 of June 21, 2004 on the protection and promotion of the rights of disabled LAW no. 488 of November 10, 2004 approving Government Emergency Ordinance no. 86/2004

amending and supplementing Government Emergency Ordinance no. 68/2003 regarding social services

LAW no. 515 of November 28, 2003 approving Government Emergency Ordinance no. 68/2003 regarding social services

Government Ordinance no. 129/2000 regarding the vocational training of adults, republished. LAW no. 515 of 28 November 2003 for the approval of Government Ordinance no. 68/2003 on social

services LAW no. 319/2006 - The Law on Safety and Health at Work, as amended and supplemented LAW no. 62/2011 - The Law of Social Dialogue, as amended and supplemented LAW no. 248/2013 - on the organization and functioning of the Economic and Social Council LAW no. 467/2006 - Law on the general framework for information and consultation of employees LAW no. 217/2005 - European Works Councils Act

Legislation regarding international organizations

Law no. 74 of May 3, 1999, published on the Official Gazette of Romania no. 193/May 4, 1999, by means of which Romania ratified the Revise European Charter of the Council of Europe.

Law no. 116 of April 24, 1999 by means of which Romania ratified the European Code of Social Security of the Council of Europe, adopted in Strasbourg on April 16, 1964

Law no. 282/2007 by means of which Romania ratified the European Charter for Regional or Minority Languages, adopted in Strasbourg on November 5, 1992.

Law no. 37/2008 approving the capacity of full-rights member of the Romanian Government within the European Center for Social Welfare Policies and Research (ECSWPR), based in Vienna.

Internal legislation in the field of European affairs

Decision no. 379/2013 on the organization and operation of the National Center for Managing European Affairs in view of Romania’s participation in the decision-making process of the European Union institutions and supplementing art. 2 para. (1) of Government Decision no. 8/2013 on the organization and operation of the Ministry of Foreign Affairs;

Law no. 373/2013 regarding the cooperation between the Parliament and Government in the field of European affairs.

Community legislation

Treaty for Romania’s accession to the European Union; Lisbon Treaty; Secondary community legislation relevant for the field of competence of MLFSPEP, whose

transposition and implementation, respectively application, as the case may be, is ensured by the specialized department of MLFSPEP and/or institutions under its authority or subordination.

Bilateral cooperation documents

The protocol concluded between the Ministry of Labor, Family, Social Protection and Elder People of Romania and the Ministry of Interior of Israel, regarding the recruitment of Romanian workers for temporary activities in the field of constructions and Israel, concluded in Jerusalem on June 24, 2014

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approved through GD no. 958 of October 29, 2014 and that entered into force on November 18, 2014.

Memorandum of Understanding concluded between the Ministry of Labor, Family and Social Protection in Romania and the Ministry of Social Affairs of the Kingdom of Netherlands, regarding cooperation in the field of applying the regulations on social policies in the case of cross-border labor and services, concluded in Bucharest on July 1, 2010, approved through GD no. 94 of March 13, 2013.

Cooperation protocol concluded between the Ministry of Labor, Family and Equal Opportunities in Romania and the Federal Ministry for Economy and Labor in Austria, concluded in Bucharest on June 26, 2008, approved through GD no. 1650 of December 10, 2008.

Cooperation understanding concluded between the Ministry of Labor, Family, Social Protection and Elder People in Romania and the Public Federal Employment, Labor and Social Dialog Service of the Kingdom of Belgium, in the field of labor and employment, concluded in Brussels on September 10, 2013, approved through GD no. 48 of January 29, 2014.

Framework agreement concluded between the Ministry of Labor, Family and Social Protection and the Ministry of Administration and Interior of Romania and the French Office for Immigration and Integration regarding the establishment, as pilot project, of support for the reinsertion of Romanian families with citizens belonging to the Roma minority, with aid to come back provided by the French Office for Immigration and Integration, concluded in Bucharest on September 12, 2012, approved through GD no. 1189 of December 4, 2012.

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Annex 4.2: Treaties and conventions ratified by Romania

Conventions of the International Labor Organization ratified by Romania

No. Convention Date of ratification Status

1 C1 Convention on the labor time (industry), 1919 13-06-1921 Ratified

2 C2 Convention on unemployment, 1919 13-06-1921 Ratified

3 C3 Convention on protection of maternity, 1919 13-06-1921 Ratified

4 C4 Convention on night labor for women, 1919 13-06-1921 denunciated on 28-05-1957

5 C5Convention on the minimum age for employment in industry, 1919

13-06-1921 denunciated on 19-06-1976

6 C6Convention on night labor for children in industry, 1919

13-06-1921 ratified

7 C7 Convention on the minimum age of child admittance in maritime labor, 1920

08-05-1922 denunciated on19-06-1976

8 C8 Convention on unemployment indemnity (in case of shipwreck), 1920

10-11-1930 ratified

9 C9 Convention on the placement of sailors, 1920 10-11-1930 ratified

10 C10 Convention on the minimum age of child admittance in labor (farming)

10-11-1930 denunciated on 19-06-1976

11 C11 Convention on the right to association in farming, 1921

10-11-1930 ratified

12 C13 Convention on the use of cruse in painting 04-12-1925 ratified

13 C14 Convention on weekly break in industry, 1921 18-08-1923 ratified

14 C15 Convention on the minimum age of youth admittance in labor as coal or fire operators

18-08-1923 denunciated on 19-06-1976

15 C16 Convention on the medical control of youth (maritime workers)

18-08-1923 ratified

16 C22 Convention on the navigators’ employment contract, 1926

11-10-2000 ratified

17 C24 Convention on illness insurance (industry), 1927 28-06-1929 ratified

18 C27 Convention on marking the weight on large parcels transported by ship, 1929

07-12-1932 ratified

19 C29 Convention on forced or mandatory labor, 1930 28-05-1957 ratified

20 C59 Convention (revised) on the minimum age for employment in industry, 1937

06-06-1973 denunciated on 19-06-1976

21 C68 Convention on nutrition and meals (ship crews), 1946 11-10-2000 ratified

22 C81 Convention on labor inspection, 1947 06-06-1973 ratified

23 C87 Convention on union freedom and the protection of 28-05-1957 ratified

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union rights, 1948

24 C88 Convention on employment service, 1948 06-06-1973 ratified

25 C89 Convention on night labor of women working in industry, 1948

28-05-1957 ratified

26 C92 Convention on crew accommodation (revised), 1949 11-10-2000 ratified

27 C95 Convention on protection of salaries, 1949 06-06-1973 ratified

28 C98 Convention on applying the principles of the right to collective organization and negotiation, 1949

26-11-1958 ratified

29 C100Convention on the equality of remuneration, 1951 28-05-1957 ratified

30 C105 Convention on abolishing forced labor, 1957 03-08-1998 ratified

31 C108 Convention on identity documents of navigation staff, 1958

20-09-1976 ratified

32 C111 Convention on discrimination among labor force and in exerting professions, 1958

06-06-1973 ratified

33 C116 Convention on partial revision of conventions adopted by the General Conference of the ILO in its first 32 sessions, 1961

09-04-1965 ratified

34 C117 Convention on the objectives and base norms of social policy

06-06-1973 ratified

35 C122Convention on employment policy, 1964 06-06-1973 ratified

36 C127 Convention on maximum weight, 1957 28-10-1975 ratified

37 C129 Convention on labor inspection in farming, 1969 28-10-1975 ratified

38 C131 Convention on setting the minimum wage, 1970 28-10-1975 ratified

39 C133 Convention on crew accommodation (additional provisions), 1970

11-10-2000 ratified

40 C134 Convention on preventing accidents of maritime sailors, 1970

28-10-1975 ratified

41 C135 Convention on the protection of worker representatives, 1971

28-10-1975 ratified

42 C136 Convention on the protection against intoxication risks due to benzene, 1971

06-11-1975 ratified

43 C137 Convention on social effects of new labor methods in harbors, 1973

28-10-1975 ratified

44 C138 Convention on the minimum age of employment, 1973

19-11-1975 ratified

45 C144 Convention on three-party consultancy meant to promote the application of international labor norms, 1976

09-12-1992 ratified

46 C147 Convention on minimum standards on board of commercial ships, 1976

15-05-2001 ratified

47 C154 Convention on promoting collective negotiation, 1981

15-12-1992 ratified

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48 C163 Convention on navigation staff welfare, 1987 11-03-2002 ratified

49 C166 Convention on sailor repatriation (revised), 1987 11-10-2000 ratified

50 C168 Convention on promoting employment and unemployment protection, 1988

15-12-1992 ratified

51 C180 Convention on labor time of navigating staff and ship crews, 1996

11-10-2000 ratified

52 C182Convention on forbidding severe forms of child labor and immediate action to eliminate such forms

13-12-2000 ratified

53 C183Convention on protection of maternity, 2003 23-10-2002 ratified

54 P147 1996 protocol on the convention regarding commercial navy (minimum norms)

15-05-2001 ratified

55 C87 Convention on Trade Union Freedom and the Protection of the Right to Organize

18-01-1958 ratified

56 C154 Convention no. 154/1981 on the promotion of collective bargaining

1992 ratified

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Annex 4.3: Model of service delivery

The Ministry of Labor and Social Justice (MMJS) is implementing the governmental policy in the fields of labor, and social justice, correlated with European and international policies, fulfilling the functions of: strategic planning, regulation, synthesis, endorsement, representation, monitoring, inspection and control. Thus, the MMJS develops, updates, coordinated and monitors the application of strategies, plans and programs, issues public policy documents and draft laws, issues regulation acts, coordinated, monitors and assures the unitary implementation of the national legislation, harmonized with the provisions and requirements of the law of the European Union, of treaties, conventions, agreements, memoranda and protocols that Romania is part of, conducts control and inspections on activities and services in its area of competence, including with regard to the use of financial resources allocated through the state budget and of resources from internal and external loans.

At the same time, the Ministry is an Intermediary Body for the implementation of programs financed from non-reimbursable external funds and is involved in the coordination, management and control of Structural and Investment European Funds for the Operational Programme “Human capital”.

The fields in which the MMJS fulfills specific attributions are: protection of children’s rights and adoption, social assistance and social inclusion, equality of chances, European funds, labor law, employment and professional training, pensions and other rights stated by laws of special nature, protection of women, protection of persons with disabilities, protection of the elderly, wage policy, occupational security and health, social dialogue. In order to assure the basic conditions for fulfilling its attributions, the following are also carried out in the ministry: management of budgets and allocated funds, fulfillment of obligations entailing from the status of a member state of the European Union, management of external relations, exerting control on the unitary enforcement and compliance with legal regulations in its specific field of activity and regarding the institutions under its subordination or authority, management of human resources.

In order to implement the adopted public policies, the ministry is using the resources of the state budget, the social insurance budget, Structural and Investment European Funds, loans and grants from other international financial institutions. The MMJS is organized in functional components (general directions, directions, services, compartments) within which civil servants are appointed, and hired to have general positions, specific positions and in which contractual staff is also appointed and hired.

At the same time, the MMJS organizes, coordinates, guides specific activities and monitors the manner of compliance with the legal provisions in the activity of subordinated institutions. The two institutions under its authority are tasked with the attributions stated by the legal provisions for main authorizing officer.

In the process of policy analysis and substantiation, the MMJS coordinates the National Institute for Scientific Research in the field of Labor and Social Protection.107

Institutions subordinated to the Ministry of Labor and Social Justice

National Authority for Persons with Disabilities (ANPD) is a specialized body of the central public administration, with legal personality. ANPD coordinates at central level the activities of protection and promotion of the rights of disabled persons, develops policies, strategies and standards in this field, monitors the enforcement of regulations and the control of the activities of

107 http://www.incsmps.ro/index.php?lang=romanian

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protection and promotion of rights of disabled persons. ANPD is appointed as the central authority for coordinating the implementation of the UN Convention on the Rights of Persons with Disabilities. ANPD has the role to oversee the fulfillment of the obligations assumed by the Romanian state regarding the protection and promotion of rights of disabled persons through the international conventions and treaties that Romania is a part of, to enforce and follow up and assure the unitary enforcements of the law in this field. ANPD holds no territorial structures and in order to exert its attributions, it cooperates locally with the General Departments for Social Assistance and Child Protection, institutions subordinated to local authorities, but also with other institutions under the subordination / authority of the MMJS. In order to get the social benefits and services they are entitled to by law, disabled persons must turn to the General Department for Social Assistance and Child Protection, and to the town hall responsible for the territory where they reside. In order to benefit from the other rights and facilities provided by the law in force, disabled persons must turn, as the case may be, to the local public administration, and to the county school inspectorate, to the County pensions house, County Health Insurance House.

National Authority for Child Protection and Adoption (ANPDCA) is a specialized body of the central public administration, with legal personality. ANPDCA has attributions in the field of protection and promotion of children’s rights, of preventing child separation from parents and of special protection of children who are temporarily or permanently separated from parents and of adoption. In exerting its attributions, the ANPDCA develops draft laws, follows up and assures the unitary application of the law in the field of competence, takes the measures required to prevent or, as the case may be, to remove the effects of any acts infringing the principles and norms of international treaties in the field of children’s rights, that Romania is a part of, initiates, negotiates and concludes with the approval of the MMJS and with empowerment from the Government documents of international cooperation in the scope of competence. ANPDCA holds national records of all associations, foundations and federations operating in its field of activity, as well as of all the services provided by such and proposed the Government to recognize them as public utilities; in lawful conditions develops and proposes to the Ministry of LSJ for approval the criteria, minimum standards and indications underlying the accreditation of providers and services of prevention of separation of children from parents and special protection of children temporarily or definitively separated from parents and assures the control, coordination and methodological guidance of such, as well as of the activities carried out by the commissions for child protection, authorizes private foreign bodies to hold activities in the field of adoption. ANPDCA coordinates and oversees the activities of adoption and drives international cooperation in the field of adoption; receives requests from families and persons who wish to internationally adopt a child from Romania. ANPDCA does not hold territorial structures, but in exerting its attributions cooperates and involves the authorities of the local and central public administration, the civil society, parents and children.

The National Agency for Equality of Chances between Women and Men (ANES) is a specialized body of the central public administration, with legal personality. ANES promotes the principles of equality of chances and of treatment between women and men in order to eliminate all forms of gender-based discrimination from all policies and national programs and it develops, coordinates and applies Government strategies and policies in the field of prevention and fights against domestic violence. ANES is the institutional warrantor of compliance with the principle of equality of chances and of treatment between women and men and of assuring the development and implementation of the required legal framework. Its role is to assure the implementation and monitoring of applying the provisions of the relevant legislation. ANES finances or, as the case may be, co-finances specific projects and projects within national programs of interest in its field of competence. Romania ratified the Convention of the Council of Europe on preventing and combating violence against women and domestic violence - in short the Istanbul Convention - which requires signing countries to have concrete measures of prevention and protection, being the most complex

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instrument of international legal cooperation regarding the prevention of violence against women, protection of victims, criminal prosecution of authors and adoption of a wider range of measures to approach this issue, in all its complexity. The MMJS assumed objectives in the field to contribute to strengthening the institutional capacity of the authorities of the central and local public administration regarding the management of violence in family and the development of a unitary system of social services specialized in the field of prevention and fight against family violence. In this direction ANES has the role to coordinate the process of implementation of the Convention and to report the status of its implementation. ANES holds no territorial structures and in order to exert its attributions, ANES cooperates with the General Departments of Social Assistance and Child Protection, public institutions organized at county level, subordinated to the local authorities. ANES also cooperates with other institutions under the subordination / authority of the MMJS (such as ANPDCA or ANPD) as well as with organizations of the civil society involved in combating domestic violence or in promoting equality of chances between women and men. ANES manages a Call-center service for the victims of domestic violence and grants licenses to centers destined for the victims of domestic violence / aggressors.

National Authority for Payments and Social Inspection (ANPD) is a specialized body of the central public administration, with legal personality. ANPIS assures the administration and management in a unitary payment system of social assistance benefits and other programs regarding social services supported by the state budget, through the budget of the MMJS, assures the performance of assessment and monitoring activities for the social services, conducts control on social assistance measures regarding the prevention, limiting or removal of the effects of situations that may generate social marginalization or exclusion of a person, family, groups or communities, activities performed by the authorities of the central and local public administration and by other natural persons and legal entities. ANPIS has in subordination county agencies for payments and social inspection and the same agency from Bucharest which apply in the territory the policies, strategies, legislation and programs developed by ANPIS and the MMJS in the field of social assistance benefits and social services (including establishing the right to social assistance benefits and paying such benefits), in the field of social inspection, as well as in other area of competence. County agencies for payments and social inspection and the same agency from Bucharest assure together with the local public authorities the implementation of program for paying social assistance benefits. County and Bucharest agencies for payment and social inspection evaluate, monitor and control the activity of public and private providers of social services, as well as the social services, to check the compliance with quality and cost standards, the efficiency and performance of such providers; it also ascertains any legal breaches in the field of social assistance and applies the civil sanctions stated by law.

Labor Inspection (IM) is a specialized body of the central public administration with legal personality. IM assures the exertion of control in the fields of labor relations, occupational security and health, oversight of the labor market and acts to assure the social protection of labor. Labor Inspection has under subordination territorial labor inspectorates (institutions with legal personality which are organized in each county and in Bucharest), the Center for Monitoring Units with Professional Risk - financed from its own incomes and the Center of Professional Training and Improvement of the Labor Inspection - financed from own incomes. At the same time, the Magazine “Obiectiv”, a unit with legal personality financed from its own revenues, was cancelled, its activity being taken over by the Labor Inspection.

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Institutions under the authority of the Ministry of Labor and Social Justice

The National Employment Agency (ANOFM) is a specialized body of the central public administration, a public institution of national interest, with legal personality. ANOFM coordinates the implementation of MMJS policies and strategies regarding the employment and professional training of job seekers, through its own strategy. ANOFM contributes to stimulating employment and preventing unemployment; it stimulates the participation of job seekers in services of professional training and competence assessment; it increases the chances of employment and social inclusion of disadvantaged categories of persons on the labor market; it protects persons at risk of losing their job and employees of employers in insolvency; it facilitates the free circulation of workers in member states of the European Union and in other states that signed the Agreement on the European Economic Area, as well as in other states with which Romania signed treaties, agreements or conventions. ANOFM makes proposals regarding the elaboration of the draft budget of unemployment insurance and presents to the MMJS reports on budget execution; it proposes the MMJS draft laws in its area of competence; it organizes services of establishment, payment and records of benefits, allowances and indemnities financed from the budget of unemployment insurance; it implements programs financed from the Social European Fund. ANOFM assures the coordination, guidance and control of the activities of subordinated units, of county and Bucharest employment agencies (41), of regional centers of professional training of adults (8), 23 own centers of professional training and the National Center of Professional Training of Its Own Staff. The National House of Public Pensions (CNPP) is a specialized body of the central public administration, a public institution of national interest, with legal personality. CNPP manages the public pensions system and the insurance system for occupational accidents and professional illness, it grants pensions and other social insurance benefits. CNPP guides and monitors the enforcement of legal provisions by territorial pension houses and by natural persons and legal entities with rights and obligations in the field; it provides data for grounding and elaborating the state social insurance budget; it organizes the national records of tax payers, of tax-paying schemes and of social insurance rights and obligations, in terms of records, calculation and transfer of individual contributions to privately-managed pensions funds; it carries out activities of insurance against occupational accidents and professional illness. CNPP has in subordination the county pensions houses and the Bucharest Pensions House, as well as the National institute of Medical Expertise and Recovery of the Work Capacity. CNPP is a sole shareholder of the Company for Balneary Treatment and Recovery of the Work Capacity “TBRCM” SA. Territorial pension houses establish the quantum of rights in their competence and pay such rights; they give balneary treatment tickets and vacation tickets, as well as death aids; they fulfill the obligations binding them in applying the provisions of international agreements and relevant community regulations; they assure the payment of money benefit abroad; they coordinate and control from an administrative standpoint the activity of medical expertise and recovery of the work capacity and disburse expenses related to them; they conclude contract with providers of medical services; they assure the records of labor accidents and professional illness and set, pay and grant the rightfully owed benefits.

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Competența face diferența!Proiect selectat în cadrul Programui Operațional Capacitate Administrativă, cofinanțat de Uniunea

Europeană din Fondul Social European

Competence makes a difference!Project selected under the Administrative Capacity Operational Program, co-financed by the European

Union from the European Social Fund

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