The first unpaid day of medical leave: Practical implications for Romanian employers

Effective 1 February 2026, Emergency Ordinance No. 91/2025 introduces a material change to the medical leave indemnity regime in Romania: the first day of medical leave will not be compensated. Under the previous framework, employers covered the first five days of medical leave indemnity. Going forward, only days 2–6 will be paid by the employer. This temporary measure is in effect until 31 December 2027 and warrants careful consideration from both an employment law and payroll reporting perspective.

Does this affect all medical certificates starting 1 February 2026?

It affects all medical certificates issued during the 1 February 2026 – 31 December 2027 window, except for certificates issued to insured individuals who are placed under an official isolation measure, where day 1 remains paid.

Is day 1 still considered medical leave if unpaid?

In our view, yes. It is important to distinguish between medical leave as a protected legal status and the medical leave indemnity as a form of compensation. These are two distinct rights, aimed at ultimately ensuring the recovery of the employee’s work capacity. This distinction also supports the idea that the suspension of the individual employment contract is triggered by the employee’s certified incapacity to work, not by whether the period is remunerated.

Treating day 1 as anything other than medical leave can distort contribution records and employee historical data, particularly since, while unpaid, day 1 still counts as a contributory period for social security purposes. Accordingly, although day 1 is now unpaid, it should still be recorded and treated as medical leave for the purposes of contract suspension, labour law protections and related processes.

Voluntary payment of day 1: Key considerations

Some employers have internal regulations or handbooks that commit to full compensation of medical leave, including day 1. The question arises whether employers may continue to pay for day 1 voluntarily.

In principle, they may continue paying, but the legal characterisation of that payment is relevant:

• The amount paid for day 1 would likely no longer qualify as “medical leave indemnity” under the amended framework.
• The amount paid may be treated as regular salary income, subject to income tax and social security contributions, following general tax deductibility rules (as a personnel expense for the employer).
• If employers maintain a reference to “medical leave indemnity” in internal regulations for day 1, this may create inconsistencies in tax treatment and may trigger potential deductibility challenges in case of tax audits.

Employers wishing to discontinue payment for day 1 should review and, if necessary, amend internal regulations/handbooks and formally communicate the change to employees to ensure clarity and compliance from both a legal and tax perspective.

Payroll and REGES reporting

How the unpaid day 1 is recorded is operationally significant. Incorrectly classifying day 1 as unpaid leave (as opposed to medical leave (unpaid)) may distort:

• the calculation of contributory periods;
• social insurance records; and
• historical data relevant to employees’ insurance and contributions.

Our view is that day 1 should continue to be reported as medical leave (unpaid), consistent with its legal nature as a period of contract suspension due to medical incapacity. Employers should coordinate with payroll providers and legal advisors to align systems and ensure consistent classification. Tax reporting follows legal provisions and distortion of proper reporting may trigger negative impact at both employee and employer level.

Recommended next steps for employers

• Policy review: Examine internal regulations, employee handbooks, collective agreements (if in place) and employment contracts to identify any commitments regarding medical leave compensation for day 1.
• Internal alignment: Align HR, payroll, tax and legal teams on the classification and reporting of day 1.
• System updates: Ensure payroll and HRIS/REGES settings accurately reflect day 1 as medical leave (unpaid).
• Employee communication: Prepare a clear, documented communication for employees explaining the change, its timing and the implications. Employees assigned abroad under active Romanian employment contracts should not be overlooked.
• Tax treatment: If maintaining payment for day 1, validate the applicable tax treatment (income tax and social contributions) and deductibility with your tax advisors.

Disclaimer: This post reflects our professional view and is provided for informational purposes only. It does not constitute legal or tax advice. Employers should obtain tailored advice based on their specific circumstances.