Failure of household activity vouchers after two years: 'People want cash in hand, not trips to the city'

Romania's initiative to formalize domestic work through household activity vouchers has, after two years, proven to be more of a bureaucratic hurdle than a genuine support system. The intention was to provide health insurance and pension contributions for those engaged in household services, but the reality on the ground paints a different picture.

The core issue lies in the practical implementation. Service providers are largely opting for direct cash payments, preferring immediate remuneration over the cumbersome process of exchanging vouchers. Furthermore, the geographical distances involved in redeeming these vouchers, particularly in rural areas, act as a significant deterrent. For instance, a provider in Corabia, Olt, must travel 80 kilometers to Slatina to cash in physical vouchers.

This logistical challenge has led to a low uptake of the system. In the Olt county, the numbers reflect a minimal interest, with only individuals nearing retirement age actively utilizing the vouchers to bolster their contribution records for pensions. This indicates that the system is not effectively integrating new workers into the formal economy as intended.

The law, adopted in 2022 and fully enacted in early 2024, aimed to combat undeclared work and expand social security coverage. However, the cumbersome registration process on the digital platform and the difficulties in cashing out vouchers have undermined these goals. The system, theoretically designed to benefit both providers and recipients, is struggling to gain traction due to its inherent complexities and the preference for traditional, cash-based transactions.