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Financing Apprenticeships DB TopBar

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  • Introduction
  • Overview – mapping
  • Financing of apprenticeship schemes
  • Financing instruments
  • Cross-country overview
  • Cross-country comparison
  • Scope and glossary
  • Feedback
  • Advanced search
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Database on financing apprenticeships in the EU

Financing Apprenticeships DB

  • Introduction
  • Overview – mapping
  • Financing of apprenticeship schemes
  • Financing instruments
  • Cross-country overview
  • Cross-country comparison
  • Scope and glossary
  • Feedback
  • Advanced search

Apprenticeship at the workplace

PDF Version
Financing of apprenticeship scheme
Scheme name
Apprenticeship at the workplace
Country
Romania
Duration

1-3 years (depending on qualification level)

Apprentices remuneration - characteristics

Type: wages paid by employer; fixed amount per month
Remuneration setting: centrally, as (a share of) the national minimum wage
Coverage: on- and off-the-job training
Variation(s): no

Apprentices remuneration - amount

Average regulated remuneration: EUR 207.26 per month (equivalent of 6 out of 8 hours per day at minimum wage 276.34 in 2016, S2); EUR 2,487.12 per year
Level in PPS: 400.89 per month; 4,810.68 per year
Level in PPS per hour (average): 3.73
Share of national minimum wage: by law, 100% of the national minimum wage for the number of hours worked.

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Wages of apprentices cannot be set below the minimum wage and this is what usually companies are paying. The actual amount depends on the average hours included in the contract, but it cannot be below 6 hours per day (standard contract is for 8 hours per day).
 
Time foreseen for on-the job-training

More than 50% of the overall duration of apprenticeship
Number of hours per year (average): 1,290
Approx. 256 working days out of which 21 are allocated to the annual leave. This gives 1,410 contract hours out of which 120 should be spent on theory training = 1,290 on-the-job training.

Apprentice social insurance

Level: 46% of the annual gross income of the apprentice (EUR 1,100 per apprentice) (2016)
Paid by: the employer and the apprentice
Rights: standard social insurance

Additional support for apprentice

Apprentices do not receive any direct financial support from the government.

Financing on-the-job training

The costs of on-the job training, including apprentices' wages are paid by employers. However, employers may apply for grant (Apprenticeship subvention) to compensate their costs. They may also benefit from tax incentive. The health insurance is partly subsidised by the government through budgetary transfers related to specific costs, as regulated by Law no 145/1997 on health social insurance, with further modifications and derived regulation.

Financing off-the-job training

Companies contribution: training materials, facilities, in-company trainers, transport costs. No quantitative data available.

Financing of the scheme overall

Public financing (national resources), money spent on the grant for companies (Apprenticeship subvention): EUR 136,000 (estimate)
No EU funding involved.

Illustration: sources of funding and financial flows
Assessment of financing arrangements

The simplification of the accreditation procedures and the existence of financing instruments like grant (Apprenticeship subvention) and tax incentive for companies along with increasing staff shortages encouraged some companies to provide apprenticeship. However, the number of apprenticeship places at national level remained very small, demonstrating that this combination of instruments is not sufficiently attractive for employers. The level of subsidy within grant instrument is considered low while the related bureaucracy is heavy. The rules on the use of the tax incentive remain unclear. At the same time, the employer's costs are considered high: long period of compulsory training (a similar qualification can be obtained 4 times faster with an accredited training provider), the obligation to assure the minimum wage (with all the related contributions), organise or support the theoretical part of the training and to pay for the final examination. With the recent raise of the level of grant, the interest of companies is expected to increase.

Contextual information

Statutory minimum wage: EUR 276.34 per month (2016, S2), EUR 275.39 per month (2017, S1), EUR 318.52 per month (2017, S2)
Average yearly working time (hours) for a full time job: 1,840

More on financing instruments for this scheme

Apprenticeship in the workplace
Romania
Tax incentives
Apprenticeship subvention
Romania
Grants for companies

More on this apprenticeship scheme

Apprenticeship at the workplace
Romania
On this page:
  • Duration
  • Apprentices remuneration - characteristics
  • Apprentices remuneration - amount
  • Time foreseen for on-the job-training
  • Apprentice social insurance
  • Additional support for apprentice
  • Financing on-the-job training
  • Financing off-the-job training
  • Financing of the scheme overall
  • Illustration: sources of funding and financial flows
  • Assessment of financing arrangements
  • Contextual information
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