Tax alert 5 – Law for ratifying the Agreement between Romania and the Republic of Serbia on social security signed at Belgrade on 28 October 2016

Agreement between Romania and the Republic of Serbia on social security

On 12 January 2018, the Social Security Agreement between Romania and the Republic of Serbia, signed on 28 October 2016 in Belgrade, was ratified.

The agreement is based on the modern principles of coordination of social security systems, which are applied at international level, including within the European Union.

We have summarized the most important aspects below:

Purpose of the Agreement

The purpose of the agreement is the recognition and the totalization of social security insurance periods realized on both states’ territories, determining the applicable legislation in the case of migrant workers, the equality of treatment, as well as the export of benefits.

Benefits covered

The Agreement will apply to Romanian legislation regarding:

  • temporary work incapacity indemnity;
  • maternity indemnity;
  • sick child care indemnity;
  • indemnity for the prevention of illness and the recovery of work capacity;
  • public pensions;
  • in kind compensation in case of illness and maternity;
  • in kind and cash compensation in case of work related accidents and illness;
  • death grant; and
  • child state allowance.

For the Republic of Serbia, the Agreement will apply to legislation regarding:

  • pension and invalidity insurance compensation;
  • health insurance compensation;
  • work related accidents and illness compensation;
  • maternity compensation; and
  • child allowances.

Totalization of the covered periods

In the case of old age compensation, invalidity and survivorship compensations, the Agreement provides that the totalization shall account both for coverage periods realized in the Contracting States, as well as coverage periods realized according to the legislation of a third-party state with which both Contracting States have established social security agreements that provide for the totalization of coverage periods. 


Applicable legislation in the case of migrant workers

Based on the special regulations, seconded individuals will be subject to the legislation of the employer’s contracting state for the duration of performing a certain activity on the territory of the other contracting state, if that the predictable duration of this activity does not exceed 24 months. This period can be extended by 24 months at the most, following the consent of the competent authorities that must be requested before the initial 24 month period expired. Exceptions from the general and special regulations are provided, for the best interest of either individuals or categories of individuals. 


Other aspects

The Agreement has been signed for an undetermined duration, and will enter into force on the first day of the third month after the end of the month in which the final notification regarding the finalizing of internal legal procedures necessary for entry into force, has been sent.The Agreement will not grant any rights for periods preceding its entry into force.An Administrative Arrangement for the application of this Agreement will be agreed by the competent authorities.


At the date of this Agreement’s entry into force, the Agreement between the Government of Socialist Republic of Romania and the Government of the Socialist Federative Republic of Yugoslavia regarding the cooperation on the matter of health assistance to insured individuals shall cease its validity.




Claudia Sofianu, Partner – People Advisory Service

Andreea Cosmanescu, Manager – People Advisory Services


For additional information, please contact:

Alex Milcev, Partner – Head of Tax & Legal


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