Florin Manole, positively endorsed for the position of Minister of Labor / The Social Democrat promises to eliminate CASS on the childcare allowance starting in 2027

Nicoleta Onofrei

20 October 2026, 10:04

Politics

Florin Manole / INQUAM_Photos_Malina_Norocea

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Proposed Minister of Labor Florin Manole received a favorable endorsement from the specialized committees of Parliament and announced that the health insurance contribution (CASS) applied to the child-rearing allowance is expected to be eliminated at the beginning of 2027. This would follow the identification of funding sources to offset the budgetary impact, Florin Manole said Tuesday.

The announcement was made during hearings before Parliament’s specialized committees. The measure is included in the government program and concerns allowances granted to parents on parental leave.

Florin Manole stated that the elimination of the health insurance contribution would be carried out in cooperation with the Ministry of Finance. The necessary funds would reportedly come from savings made in the budget, so that the financial effect of the measure would be offset.

According to the proposed minister, the budgetary impact of eliminating CASS is estimated at more than 500 million lei. The implementation of the measure therefore depends on the identification and approval of funding sources. Manole reaffirmed that the objective is for parents to no longer pay CASS from the child-rearing allowance starting next year.

Florin Manole received 52 votes "in favor," 26 "against," and 3 abstentions.

Context: Pension indexation in 2027 and CASS exemptions

Before the hearings, PSD’s nominee for the Ministry of Labour, Petre Florin Manole, announced a series of priorities, including pension indexation and the elimination of CASS for mothers and veterans, alongside measures designed to protect purchasing power and support people with disabilities. He said that fiscal and economic policies should have concrete effects on families and should not shift the burden of recovery onto vulnerable groups.

The 2026–2028 governing program presented by the Luca Niculescu Government includes, in addition to CASS exemptions, changes regarding the child-raising allowance after returning to work, as well as subsidies for employers. In discussions about the budgetary framework, the proposed Finance Minister, Alexandru Nazare, stated that no new taxes or VAT increases are planned for 2027.