Domestic service providers and how to pay them

Domestic service providers are individuals who perform occasional household activities in one or more households in exchange for remuneration. A family member of the domestic beneficiary is not considered a domestic service provider.

Domestic activities are unskilled work related to the household of a family or an individual, and include the following: cleaning/sanitization services, laundry/ironing, tailoring services, food preparation services, personal care services, feeding, and supervision of dependent domestic beneficiaries.

Domestic service providers existed before the entry into force of Law 111/2022 regarding the regulation of domestic service providers' activities, but they were paid without legal forms and consequently did not enjoy the status of insured in the state social security system, which was the main motivation for the legislator to adopt the law.

Furthermore, with the regulation of domestic service providers' activities, they acquire a series of other rights, such as:

1. the right to remuneration for the work performed, according to the provisions of the present law;
2. the right to respect for dignity in the performance of domestic activities;
3. the right to protection against any form of abuse, harassment, or violence;
4. the right to be verbally informed about the use of different tools and/or devices provided by the beneficiary for the purpose of performing domestic activities, before starting work;
5. the right to be insured in the social security system;
6. the right to be informed by the domestic beneficiary about the rights and obligations according to the present law.

The only payment method for domestic service providers is through domestic activity vouchers, which domestic beneficiaries can purchase either in paper form from any of the county employment agencies and the Bucharest municipality or electronically from the electronic platform for recording domestic activities.

The nominal value of a domestic activity voucher is 15 lei, and they are non-transferable and cannot be used for purchasing other goods and services.

The maximum term for redeeming the vouchers by the domestic service provider is 12 months from the date of receipt.

The only way to redeem them is by exchanging the vouchers for money at any of the employment agencies or the universal service provider or by bank transfer to the account indicated by the domestic service provider through the electronic platform for recording domestic activities.

For the income generated from performing domestic activities, the domestic service provider owes income tax and social security contributions, and the tax and social security contributions are applied to 50% of the nominal value of the domestic activity voucher.

Additionally, the domestic service provider automatically gains insured status, without payment of contributions, and has the right to the basic medical services package. However, to maintain this insured status, the provider must redeem a minimum of 85 domestic activity vouchers per month.

Lastly, it should be mentioned that the law allows the combination of unemployment benefits with income earned as a domestic service provider.