The evolution of the social security system in Romania 79
At the end of the XIXth century, given the industrial revolution, the category
of industrial workers appears, category depending entirely on the amount and
payment regularity of salaries. Initially, the so-called “Aid Associations” were set-
up, with funds constituted from the subscriptions paid by all its members. Later, in
1873, “aid companies” and “mutual aid companies” appeared14.
Shortly after the social security system was set-up in Germany, an inchoate
form of such a system appeared in Romania also – the insurance of workers.
In 1895, mandatory social insurances were regulated, for persons that were
employed in the mining industry and in the oil industry, by the adoption of the so-
called Mine law. Mutual companies and pensions funds were also set-up and the
funds of these were constituted through the equal contribution of the employer
and the workers. The Handcrafts Law of 1902 provided for the constitution of a
corporate-based system of social insurances, the beneficiaries being the hancrafts-
In 1910 the “Sanitary Law” was adopted and this legislative act provided for
the set-up of “aid and illness companies”. The funds were made up of
contributions, in equal parts, from workers and employers. The Neniescu16 Law in
1912, that regulated handcrafts, credit and labor insurances, introduced insurances
for the case of illness and death and also, with a mandatory character, old-age,
invalidity and accidents insurances. The workers, the employers and also the state
contributed to the constitution of these funds, but their contributions were
different. For labor accidents, the funds were constituted exclusively from the
contributions of the employers. For cases such as illness, maternity or death the
contributions belonged exclusively to the employees. For the payment of invalidity
or old-age pensions, the contributions were equally divided between the employer,
the employees and the state, each contributing with one third.
In 1918, on the territory of Romania, the law was not unitary and in fact 3
laws were applicable: the Romanian law in the Old Kingdom, the Hungarian law in
Transylvania and the Austrian law in Bucovina Region17.
Following the economic crisis that underwent in the 1929-1933 period, the
Law for the unification of social insurances from all the regions and provinces of the
keeping amounts of money for the crafts and of aiding the craftsmen from these crafts associations at
different events: marriages, christianings, deaths or in case of fires, plagues, floodings. Gabriel
Stnil, The Role of Mutual Aid Companies of Retired People in the context of Local Development, in Life
Quality Review, p. 176.
14 The History of Insurances in Romania, https://legeaz.net/dictionar-juridic/istoria-asigurarilor-
in-romania. The History of the Evolution of Social Security Systems.
15Alexandru iclea, Laura Georgescu, cited above, p. 10.
16 Published in the Official Gazette, no. 236, of January 27th, 1912.
17 Marian Preda (coord.), The Pension Insurance System in Romania in the Transition Period: Major
Problems and Solutions, Study no. 9, European Institute in Romania – Impact Studies (PAIS II),
Bucharest, p. 10.